, 1935-01-07
Complete Text of budget Message


improvements In The Form Of The
Budget
Several important changes have
been made in the form Of the bud
get document for 1886. The pur-
pose OF these changes has been two
fold: ID To improve the usefulness
OF the document from the citizens
standpoint, and CD To provide
more adequate treatment OF the fl
nancial requirements Of certain gov
ernmental units, such as the post
office department and the District
OF Columbia.
The general budget summary, fol-
lowing this message. is designed to
present in one page a comprehensive
picture OF the financial requirements
Of the government. II exhibits the
anticipated receipts from all sources
and the estimated expenditures for
all purposes. II also shows the de-
ficit and indicates the proposed
means of financing this deficit since
the figures presented in the sum-
mary are necessarily in aggregate
amounts, the details Of these
amounts are shown in six support
ing schedules. Both in the summary
and in these schedules appropriate
columns are carried to provide d.
rect comparisons between the bud
get figures for 1885 and the estimat-
ed and actual figures for 1885 and
1884.
Estimates Set Forth
The evenue estimates are en-
phaSized in this budget for the first
time. These estimates are set forth
in statement No. /, in sufficient de-
tail to show all the principal sources
from which the government gets It's
income. Accompanying this state
ment is a supporting text, which
analyses and gives the reasons for
the 1886 estimates, and compares
| them with those for 1885 and with
the actual collections for 1884.
Annexed budgets are set up for
the major self-supporting or self
contained units Of the government,
namely. the post office department.
the Reconstruction Finance cor
poration. the Tennessee valley au-
thority. and the District of Column
bia. The use of such budgets per-
mits the receipts and expenditures
Of each Of these units to be clearly
and completely presented in gross
f;~.,~nn nnl - haIonral form aC
has not hitherto been done BY
following this method. the net fig
ures for each unit. which may be
either appropriation needs or sur
plus receipts. are calculated and
then carried to the general budget
summary. Thus the financial re-
quirementS of these units are def
initely tied into the general
budgetary plan. The annexed
budgets are therefore not in any
sense independence or multiple
budgets but simply integral parts
of the governments general budget.
Better Methods Of Fiscal Control
In order to promote more salts
factory methods Of b~udgetary con-
troll in the government, I propose
this year TO i~naugurate the policy
OF having a summation OF the
budget prepared for publication i'm
mediately after the congress has
acted on all financial matters. This
summation will be ready on or be-
fore July /. unless the congress is
still in session. 1t will be present.
ed along the lines OF the general
budget summary and supporting
schedules. including statements
No. ! and 2. as shown in this
budget. IL will exhibit the revenue
estimates. so revised by the treas
ury, as to reflect any changes in
the economic situation during the
preceding 6 or Z months and also
any revisions made by the congress
in the tax laws. IL will provide a
complete summary Of all appro-
priations and expenditure authori-
cations made by the congress and
related estimates Of expenditures.
Lastly. ii will indicate the need for
executive or administrative meas
ures in controlling the execution Of
the budget during the fiscal year
1886.
A substantial reductions In the
number of appropriation items
would facilitate the exercise OF
~budgetary control over expenditures
and at the same time make for de-
partmental economy. I. therefore,
recommend that the congress es-
tablish a special joint committee TO
make a detailed study Of the ap-
preparation items in each regular
appropriation bill with a view to
greatly reducing the number Of
them, consistent with proper
~budgetary and accounting require
ments.
1t is my belief that substantial
adherence TO the general recon-
mendations and total figures pre-
sented In this budget will accom-
plish there major detectives: ~
The normal functions Of the United
States government can be carried
on with economy and a high stand
ard OF efficiency, 90 The broad
obligation of the government to use
all proper efforts to prevent desti-
tuition can be maintained under
more practical methods than we are
using at present, and 90, The ex-
cellent credit of the government
VIII be maintained for the common
good.
l believe that the congress will
sustain these detectives.