A bill to provide that Federal expenditures shall not exceed Federal revenues, except in time of war or grave national emergency declared by the Congress.

Provides that expenditures of the Government during each fiscal year, including reduction of the public debt, shall not exceed its revenues for such year except: (1) in time of war declared by the Congress; or (2) during a period of grave national emergency declared by the Congress by a concurrent resolution which has passed each House by the affirmative vote of at least two-thirds of the authorized membership of that House.

Directs that the public debt shall be limited as follows: (1) effective on July 1, 1973, by an amount equal to 2 percent of the net revenue of the United States for the fiscal year ending June 30, 1968; (2) effective on July 1, 1970, by an amount equal to 3 percent of the net revenue of the United States for the fiscal year ending June 30, 1969; (3) effective on July 1, 1971, by an amount equal to 4 percent of the net revenue of the United States for the fiscal year ending June 30, 1970; and (4) effective on July 2, 1972, and July 1 of each year thereafter, by an amount equal to 5 percent of the net revenue of the United States for the fiscal year ending on June 30, of the preceding year.

States that this Act shall apply only with respect to fiscal years beginning after June 30, 1966.