To Balance First U.S. Budget Since 1930

Northern Advocate, 11 January 1947, Page 5

To Balance First U.S. Budget Since 1930

(Received 10.30 a.m.) WASHINGTON, January 10. PRESIDENT TRUMAN, following his economic report, sent the Budget statement for the fiscal year beginning on July 1 to Congress today.

This showed an estimated expenditure of 37,500,000,000 dollars and revenue ol' 37,700,000,000 dollars, leaving a surplus of 200,000,000.

President Truman strongly recommended Congress to continue war excise taxes which would otherwise expire on June 30.

He also recommended an increase in postal rates sufficient to extinguish the postal deficit which threatens to be the largest in history. If such a recommendation were adopted total expenditure would be reduced to 37,100,000,000 and revenue increased to 38,900,000,000 yielding a surplus of 1,800.000,000. OPPOSES TAX REDUCTION Mr. Truman reiterated that tax reductions now were unjustified. He pointed out that revenue in the next fiisca! year would be lower. Revised estimates for the current fiscal year ending June 30, 1947, show receipts totalling 40,200,000,000 and expenditure 42,500,000,000, which will exceed the previous estimate because the servicemen’s programme has been increased by 1,000,000,000, but the chief cause of the deficit was the post office. Summarising the expenditure in the fiscal year beginning oh July 1, President Truman estimated that interest on the national debt will be 5,000,000,000, taxation refunds 210,000,000, defence 11,200,000,000. Mr. Truman said this represented a proper balance between security and economy.

“Our debt management policy is designed to hold interest rates at the present low level and prevent undue fluctuations in the bond market." The return of war dead from overseas, which is now beginning, is estimated to cost altogether 234,000,000. The number of Federal civilian employees was reduced from a peak of 8,770,000 in June. 1945, to 2,300,000.

The Budget for the fiscal year beginning July 1 envisages further personnel reductions.

Three departments—the post office, treasury and servicemen's administration, now have almost as many 'employees as were employed by the whole Federal Government in 1939.

President Truman, discussing the Budget proposal with reporters, said that it estimates are realised the Budget will be balanced for the first time since 1930. He described it as a tight budget, in which no department felt its needs were fully met. Mr. Truman obviously does not expect the Selective Service Draft Law to be continues after its expiry date on March 31, as no estimate for it is included in the Budget.

‘‘Though we expect the United Nations to move successfully towards world security any cut in the present estimate would immediately weaken our international position,” he said. INTERNATIONAL AFFAIRS Expenditure on international affairs and finance is estimated to total 3,500,000,000 compared with 6,400,000,000 in the current year. The United States still has contractual commitments in connection with the loan to the United Kingdom and the Export-Import Bank, also occupation responsibilities in Europe and the Far East. War damage restoration in the Philippines must be provided for and continued relief be given to some other countries in urgent need. The United States must not fail to support the United Nations. To reduce expenditure on international affairs would delay restoration of a peaceful, prosperous world. Servicemen’s services and benefits will cost 7,400,000,000. These five items—interest, tax refunds, defence, international affairs and servicemen require 29,200,000,000, or four-fifths of the total budget. ATOMIC RESEARCH The programme for regulation and improvement of the transport and communications' systems and development of natural resources will total 2,600,000,000. The largest single item of the latter is 443,000,000 for the Atomic Energy Commission. “Cur major effort now must be to exploit the peacetime uses of this great discovery,” the President said. The merchant marine and other aids to transportation will absorb nearly 1,000,000,000.

The Government’s policy is to withdraw from operation of ships as rapidly as possible and dispose of vessels to promote a large, effective merchant fleet under the United States' flag but. as private shipping operators see little prospect of profit in the coastal trade, and much of the overseas traffic is regarded as temporary, Government operations have continued. The agricultural programme will cost 1,400.000,000, the social welfare, health, and security and education 1,700,000,000 and Federal housing 539,000,000. FEWER CIVIL SERVANTS The public debt reached a peak at February, 1946, at 2,790,000,000.