The federal budget and the Economic Report of the President were presented to Congress in mid-January. These two documents represent the former Administration’s evaluation of current economic conditions and the 1969 national economic plan, and have been adopted without substantial change by the present Administration. The Federal budget calls for a spending increase of 5.5 per cent from fourth quarter 1968 to fourth quarter 1969, and Congress was asked to extend the 10 per cent surcharge to mid-1970. In the context of these proposals, GNP is projected to increase about 8 per cent in the year ending fourth quarter 1989.