This report by the Chairman of the Committee on the Budget of the U.S. House of Representatives presents the conclusions of an effort by the committee to outline a possible long-term budget strategy which will take the nation into the 21st century. Between June and December, 1991, the Committee held 16 hearings, 14 caucuses, and 10 briefings in which it conducted an extensive review of the nation's economy, long-term problems in the society, and the status of the budget deficit and the 1990 Budget Agreement. After presenting some background information that summarizes the status of the economy, the deficit and the Budget Agreement the report offers specific policy initiatives designed to restore confidence in the economy and government. Specifically, the program put forth contains the following elements: (1) streamlining and improving management of the Executive and Legislative branches to better serve the American people and formulate and carry out responses to national problems; (2) dramatic reductions in budget deficits over the next decade to below 0.5 percent of gross national product--GNP (compared to the current 6 percent), or preferably a balanced budget in order to free up the nation's resources for more productive private and public investments; and (3) targeted investments in programs chosen specifically to address the most serious long term threats to the nation's economic and social health. Following the chairman's report, additional views are offered by Representative Willis D. Gradison, Jr., the ranking Republican on the Budget Committee. (DB)