Nixon Budget Cuts Vietnam Costs

Press, Volume CX, Issue 32212, 3 February 1970, Page 13

Nixon Budget Cuts Vietnam Costs

. (N.Z.P.A.-Reuter—Copyright) WASHINGTON, February 2. President Nixon today submitted a $200,771m Budget for 1970-1971, marked by cuts in spending on Vietnam and the space programme. He told Congress that it was an anti-inflationary Budget, with a reordering of priorities to spend more money on human resources programmes than on national defence for the first time in 20 years.

The fight against crime, welfare and the President’s anti-pollution drive were all earmarked for substantial boosts.

Mr Nixon asked for only minor tax changes—income and excise tax rates were left unchanged—to help offset an SBsoom revenue loss when the present 5 per cent surtax expires on June 30. His Budget contained his spending proposals for the year beginning on July 1. The President said that he expected total revenues of $202,103m, providing a slim surplus of 31332 m which Government officials admitted could slip into deficit if the economic picture worsened. Surplus ‘Essential’ Mr Nixon said in his accompanying Budget message: “The surplus ... is essential both to stem persistent inflationary pressures and to relieve hard-pressed financial I markets.” In sending the new Budget; to Congress, Mr Nixon also estimated that the current! 1969-70 fiscal year ending on( June 30 would result in a surplus of SluOlm. Total expenditure would be I $197,885m, against $199,386m; in revenues. Nowhere in the 1095-page Budget was there any breakdown of the costs of the Viet-i nam war. ‘War Cost Less’ The Budget director, Rob-; ert Mayo, said at a press briefing that the war cost would be less than in the, previous 12 months ; He hinted that the drop; might be as much as SIO.OOOm below the $25,397m! which President Johnson! estimated for 1969-70 in his! last Budget Largely because of the! Vietnam reduction, the new! Budget proposed a reduction! in over-all military spending! to $71.191m, down from the I 876,505 m that the Pentagon is spendng in the current year. For Safeguard It includes a slsoom request for continuation of the Safeguard anti-ballistic missile defence system “to limit damage from a small, accidental, or unauthorised nuclear attack and to protect some of our retaliatory forces.” Money is also requested for development of an over-the- * horizon radar warning system, new jet aircraft for the Air Force and Navy and the! continued updating of United | States Minuteman strategic! missiles.

“The strategy of this Administration,” President Nixon declared, referring to his objective of reduced United States involvement overseas, “is based on the expectation that our allies will shoulder substantial responsibility for their own defence.” He added: “With this posture, we can safely meet our defence requirements with fewer resources.”

The President sought a record-low appropriation of slBl3m for foreign economic aid, plus $625m for military

assistance grants and credit sales.

Under the economic heading, about s4oom was reserved for South Vietnam.

Despite the low aid figures, Mr Nixon said that the United States planned to channel extra assistance to developing countries through international lending organisations

Humau Resources In his approach to domestic programmes, Mr Nixon observed proudly that 41 per cent of estimated outlays in the new Budget were devoted to human resources—spending for education and manpower, health, welfare, and former servicemen’s benefits. In contrast, the President pointed out, defence spending was being reduced. Mr Nixon spoke of a strategy for the seventies in which his Administration’s plans for other priority programmes such as crime reduction, housing, transportation and pollution, would grow substantially. To intensify the war on crime, the President said that he was asking 51257 m up from $947m so that the Federal Government could give more help to state and local authorities. Drug Traffic He also promised an enlarged and more vigorous effort to control the traffic in narcotics and dangerous drugs. A key request on the welfare side was Mr Nixon’s bid for SaOOm to initiate his family assistance programme. If approved by Congress it would give a working family of four a guaranteed annual income of $l6OO.

Following up a plan outlined in his State of the Union address two weeks ago, the President asked for a big boost in money to improve the American environment.

Specifically, he sought an extra 8330 m over current spending of s7Bsm for air and water pollution control and for additional parks and open spaces.