Children's malnutrition blamed on budget cuts

President Reagan labelled as ''a great exaggeration'' a charge by the Washington-based Food and Research and Action Center.

The center had said Reagan administration budget cuts may have contributed to a sharp increase in malnutrition among children in lower-income families -- and had urged that no further cuts be made.

''We have not reduced spending to below what it was,'' the President said, ''we have only reduced the rate of increase in spending. We are spending more. . .next year than we did this year.''

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