MR TRUMAN PRESENTS U.S. BUDGET

Press, Volume LXXXIV, Issue 25390, 13 January 1948, Page 7

MR TRUMAN PRESENTS U.S. BUDGET

Defence More Than Quarter Of Record Total

HEAVY EXPENDITURE ON FOREIGN AID

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to-day by President Truman. ’ ’ WaS presente d to Congress The Budget includes 11,000 000 non a n . defence, and 7,000,000,000 dollars fn, r dollars for national conduct of United States foreign and f ° r th ° crucial areas, said: “Should the failure “V ope and other result in a further extension o/tSi °* these , P r °K r ammes have to re-examine our security uositM rian a™?.’ we I woul( ' steps might be necessary in the circumstance" whttteVer programme of economic aid now before Congress.” will dolTarFfor'lhrMarshall P°laFfor lo months beginning on April 1, 1 948 , but it Xws for an e bera^e U^an^ P biH« f Une ’ 1 a 949 ’ ° f On, y 4,500,000,000 dollars. Because many bills for goods contracted under the aid programme will not be due until after the end of the fiscal year Mr Truman told Congress that nearly four-fifths of the total expenditure for the fiscal year 1948-49 represented com tinuing charges arising from the Second World War and from efforts to stave off a thud world war.

The principal Budget estimates are: Income. 44,477,000.000 dollars. Expenditure. 39,669.000,000 dollars. Surplus, 4.808,000,000 dollars. Capital debt at end of year, 246.200,000,000 dollars.

The estimated position at the end of the current financial year is:—income, 45,210,000,000 dollars; expenditure, 37,728,000,000 dollars’ surplus, 7.482.000.000 dollars; capital debt, 250,900.000.000 dollars.

Referring to the estimated increase of nearly 2,000,000,000 dollars in expenditure for the 1948-49 fiscal year, Mr Truman tsaid: “The plain fact is that our Budget must remain high until we have met our international responsibilities and can see our way clear to a peaceful and prosperous world.”

The President declared that the Government should use all its surplus income z to scale down the public debt. To reduce this figure to 246.200.000.000 dollars by the end of the 1948-49 fiscal year and still provide for tax relief on low incomes, the President reiterated his call for an increase of 3 200.000.000 dollars in company taxation.

Mr Truman’s estimate of revenue from taxation assumes the continuation of the present high levels of business activity and incomes, and cont:n”ed full employment. The Budget message forecasts requests for the provision later of 4 z 0.0t)0.000 dollars in aid for China and other non-European countries. The proposed expenditure of 11.000.000,000 dollars on defence is an increase of only 279.000.000 dollars over the contemplated expenditure in the current yesr. The President recommends that the armed services remain at the current strength of about 1,923.000 officers and men. A total of 2.280.000.000 dollars is recommended for new aircraft.

The Budget provides 660.000.000 dollars for the United States Atomic Energy Commission, compared with 456.000.000 dollars for the current year. Mr Truman ssid that the subject of a sea-level canal connecting the Atlantic and Pacific oceans was under study and that he would submit recommendations later.

Mr Truman described the Budget as •even more realistic and hardboiled” than the one he drew for the current financial year. He told Congress in a special statement accompanying the Budget message that he had followed a policy of keeping existing Government activities at or below the present level to achieve the maximum economy. He had determined to do this in spite of rising prices, and except in circumstances where this was clearly not in the public interest.