Nixon's record Budget

Press, Volume CXIV, Issue 33451, 5 February 1974, Page 13

Nixon's record Budget

,i (X.Z.P..1.-Kcutcr—Copi/rig/it? ‘ I WASHINGTON. February 4. | President (Nixon to- ■ day sent to Congress a ! record 5L5304,400m S Budget, and a pledge ■ that he was ready to. , pour more money into - the economy if the energy crisis worsened the already bleak 1974 outlook for unemployment and spiralling . prices. The Budget for the 1975' financial vear. beginning on. July 1. 'was 5U529,700m ’ more than that for 1974. It; /estimated Federal revenue at! 1 $U5274,700m, and a 8U59400; ' million deficit — $US47OOm{ J more than the deficit this; i i year. r j The national defence bud-1 ((get. including Pentagon: I spending, the military aspects ,!of atomic energy, and other' j programmes, rose to! .SUSB7,7OOm, an increase of! ? SUS7IOOm. •' Mr Nixon told Congress; (that his Budget ensured ade-:

quate defence in a period of peace—when the United States was not at war with any other country—for the (first time for 12 years. He described it as a Budget of moderate restraint which would support high (employment and restrain initiation. I However, he predicted severe inflation—now running at a rate of 7 per cent—and higher unemployment, which last month increased from 4.8 to 5.2 per cent of the labour force. He also gave a warning that there would ibe little or no economic growth in the coming months, but he predicted better times for Americans in .the latter part of 1974. The President told Conigress that his Budget was (flexible enough to allow steps jto protect the economy by (such measures as increasing I unemployment benefits, i speeding up Govemment- ! aided programmes, increasing the flow of payments to defence and other contractors, and changing monetary : policy. The Budget asked for no new taxes, apart from the previously-announced windfall profits taxes on oil com-

f panies. estimated to amount 1 to SUS3OOOm by June, 1975, t to prevent profiteering during e the energy crisis. Officials say that the Presi--'dent is prepared to do what tlis necessary to support the t nation’s bruised economy if a -(recession threatened the ‘country, but that the Adj ministration “will show . patience and be cool, and will . not be stampeded into action :, by every’ little thing that j might come along.” f The Pentagon’s military e spending, excluding other 1 expenditures for national dec fence, increased from i 5U579,500m to SUSBS.BOOm, - chiefly because of inflation. ;1 : The officials note that private industry intends to - spend up to SUS2OO,OOOm in s: energy research and developsiment in the next five years, viand that Mr Nixon proposed g'to make SUSIO.OOOm in :,;Federal funds available for -ithe same purpose over the -(same period. o! The largest single allot--jment in the Budget was /SUSISI,SOOm for human resources — almost 50 per cent 3 of the total expenditure, and »covering education, man- . power training, health, social .'security, and other forms of

Liincome security, and bene- , fits to former servicemen. - Almost SUS2S,OOOm or 8.2' per cent of the Budget and Jan increase from; tisUS23,6oom, was earmarked. I for physical resources, such ( las agriculture and rural ,! development, natural re- ! sources and the environment, , commerce. transportation, I and community development ( and housing. t The national defence budget showed an increase from , SUSHOOm to SUSI2OOm for ■' overseas military aid; from r ,$US232Bm to SUS2BB6m for ’ nuclear energy development; '•and from SUS3I77m to' > SUS3272m for space research; and technology. Spending on bilateral and > multilateral economic aid in-; i creased slightlv from! -!sUSls6om to SUSI6I3m. ,! International security as-, iisistance — to help friendly; i countries to maintain a. r capability for self-defence —- j increased to SUSISOOm from! SUS 1400 m. This did not in- ■ dude aid to Israel, the needs ; of which country are met . from separate programmes.; : After the beginning of the: I Arab-Israeli war last Octo-; ■ ber, Congress authorised the; I expenditure of SUS22SSm in f military aid to Israel. ,