Truman’s Record Peacetime Budget

Northern Advocate, 13 January 1948, Page 5

Truman’s Record Peacetime Budget

WASHINGTON, Mon.—A record peacetime Budget of $39,669,000,000 for the fiscal year ending June 30, 1949, was presented to Congress yesterday by President Truman. It includes $11,C00,000,000 for national defence and $7,000,000,000 for foreign aid and for the conduct of United States foreign policy. Emphasising the budgetary impli- - cations of failure to achieve economic recovery in Europe and other crucial areas,, Mr Truman said: “Should the failure of these programmes result in a further extension of totalitarian rule, we would have to re-examine our security position and take whatever /steps might be necessary under the circumstances. “The costs of added military strength ~ if Europe should succumb to totali- , tarian rule would far exceed the cost of the programme of economic aid now before Congress.” .“ v CONTINUING WAR CHARGES The President’s Budget message assumes that Congress will appropriate $6,800,000,000 for the Marshall Plan for the 15 months beginning April 1, 1948, but it only allows for actual expenditure up to June, 1949, of $4,500,000,009, since many bills for goods contracted under the aid programme will not fall 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 represents continuing charges arising from the ' Second World War and efforts to ' st<r'e off a third world war. MAIN ESTIMATES The principal Budget estimates are: Millions of , Dollars, Income .. ...... 44,477 Expenditure .. .... • • 39,669 Surplus 4808 Capital debt at end of year 246,200 The estimated position at the end of the current financial year is:, Millions of Dollars. Income .. 45,210 Expenditure .. .. .. .. 37,728 Surplus -7482 Capital' Debt 250,900 Referring to the- estimated increase in expenditure of nearly $2,000,000,000 for the. 1948-49 fiscal year,. Mr Truman said: - " . ; ;J j'/ “The plain fact- is that our. Budget must remain high until we have met our international responsibilities and can see the way clear -to a ; -peaceful and prosperous world!” “'•H-*-

FUBLIC DEBT REDUCTION The President said the Government should use all surplus income to scale down the public debt. To reduce this figure to $246,200,000,000 by the end of the 1948-40 ’fiscal year and still provide for tax relief on low incomes, the President reiterated his call, for an increase of $3,200,000,000 in company taxation. His estimate of revenue from taxation assumes a continuation of the present high levels of business activity and incomes and continued full employment. The Budget message forecast- requests for the provision later of $440,000,000 of aid for China and other non-European countries. The proposed expenditure of $11,000,000,000 on defence is an increase of only $279,000,000 on the contemplated expenditure in the current year. '

The President recommends that the armed services remain at about, the current strength of about 1,423,000 officers and men. A total of $1,230,000,000 is recommended for new aircraft. The Budget also provides $660,000,000 for the United States Atomic Energy Commission, compared with $456,000,000 for the current year.

SEA-LEVEL CANAL

Mr Truman said the subject of a sealevel canal connecting the Atlantic and Pacific Oceans was being studied, and he would submit recommendations later.

The President described thg Budget as “even more realistic and hardboiled” than the one he drew up for the current financial .year. He told the 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 in order to achieve the maximum economy.

He said he had- determined to do this in spite of rising and except in circumstances where ijhis was clearly not in the public interest.