Evening star., 1935-01-07


nesses, permitting transfers between
appropriations, and the involuntary
retirement of Federal employees hav-
ing 30 years service. Specific provi-
sion is also made for service credits
to certain personnel affected by the
suspension of increases in pay dur
ing the fiscal years 1888 to 1885, In
the determination of compensation
accruing subsequent to June 80, 1885,
but without authorizing the payment
of the amount that would have been
paid during these years. Among the
economy provisions which now obtain
and which 1t Is not proposed to con-
tinue is the per cent reduction In
compensation of Government en-
ployes after July /, 1885. I see no
reason, however, for the restoration OF
this reduction prior to that date. The
index figure of the cost of living, on
the basis of which salary restorations
are provided by section 8, title II of
the economy act of 1888, now indl-
Gates that such restorations in all
probability would not even be justi-
fled on next July /, or for some time
thereafter.
improvements in Form Of Budget.
Several important changes have
been made in the form Of the budget
document for 1886. The purpose OF
these changes has been twofold: %
To improve the usefulness Of the
document from the citizens stand
point, and (2) to provide more ade-
quate treatment of the financial re-
quirements of certain governmental
units, such as the Post Office De-
partment and the District Of
Columbia.
The general budget summary, fol-
lowing this message, is designed to
present on one page comprehensive
picture of the financial requirements
of the Government. 1t exhibits the
anticipated receipts from all sources
and the estimated expenditures for
all purposes. 1t also shows the deficit
and indicates the proposed means of
financing this deficit. Since the
figures presented in the summary are
necessarily in aggregate amounts, the
details of these amounts are shown
in six supporting schedules. Both in
the summary and in these schedules
appropriate columns are carried to
provide direct comparisons between
the budget figures for 1886 and the
estimated and actual figures for 1885
and 1884.
The revenue estimates are empha-
sized in this budget for the first time
These estimates are set forth in
Statement No. / in sufficient detail
to show all the principal sources from
which the Government gets its in
come. Accompanying this statement
is a supporting text, which analyzes
and gives the reasons for the 1886
estimates, and compares them with
those for 1885 and with the actual
collections for 1884.
Annexed Budgets Set Up.
Annexed budgets are set up for the
major self-supporting or self-con-
tanned units of the Government,
namely, the Post Office Department,
the Reconstruction Finance Corpora
ton, the Tennessee Valley Authority
and the District of Columbia. The
use of such budgets permits the re-
ceipts and expenditures of each of
these units to be clearly and COM
pletely presented in gross figures and
in balanced form, as has not hitherto
been done. BY following this method,
the net figures for each unit, which
may be either appropriation needs
or surplus receipts. are calculated and
then carried to the general budget
summary. Thus the financial re-
quirementS of these units are def
nitely tied into the general budgetary
plan. The annexed budgets are
therefore not in any sense indepen-
dent or multiple budgets but simply
integral parts Of the Government S
general budget.
Better Methods OF Fiscal Control.
In order to promote more salts
factory methods of budgetary control
in the Government, l propose this
year to inaugurate the policy of having
a summation of the budget prepared
for publication Immediately after Con-
gress has acted on all financial mat
tiers. This summation will be ready
on or before July /, unless the Con-
greSS is still in session. 1t will be
presented along the lines of the
general budget summary and support
ing schedules, including statements
Nos. 1 and 2. as shown in this
budget. 1t will exhibit the revenue
estimates. so revised by the Treasury,
as to reflect any changes in the
economic situation during the pre-
ceding six or seven months and also
any revisions made by the Congress
in the tax laws. 1t will provide a
complete summary of all appropria-
tions and expenditure authorizations
made by the Congress and related esti-
mates OF expenditures. Lastly, it will
indicate the need for executive or
administrative measures in control
ling the execution of the budget dur
ing the fiscal year 1886.
A substantial reduction in the
number of appropriation items would
facilitate the exercise of budgetary
control over expenditures and at the
same time make for departmental
economy. I, therefore, recommend
that the Congress establish a special
joint committee to make a detailed
study of the appropriation items in
each regular appropriation bill with
a view to greatly reducing the number
of them, consistent with proper bud
getary and accounting requirements.
1t is my belief that substantial
adherence to the general recommen-
dations and total figures presented in
this budget will accomplish three
major objectives: Q) The normal
functions of the United States Gov
ernment can be carried on with
economy and high standard of eff
ficiency, t2) the broad obligation of
the Government to use all proper
efforts to prevent destitution can be
maintained under more practical
methods than we are using at present,
and CD the excellent credit of the
Government will be maintained for
the common good.
I believe that the Congress will
sustain these objectives.
FRANKLIN D. ROOSEVELT.
$l54, TOO 900; electrical energy, $32,-
900 ana. Au,,oI~c nm