The Waterbury Democrat., 1937-10-19
NO Balanced Budget
 h This Fiscal Year
President Insists Their Must Be Speedy Economy or
 Higher Taxes to Keep Within Revenue

MT. Roosevelt did not analyze the factors contributing to reduce in- come and other tax revenue $643,- COG, 900 below January estimates. 1n- come and social security taxes fell farthest below estimates. But he detailed congressional appropria- tons which added an unexpected $344, ,O0O, 900 to federal costs for this fiscal year and explained his econ- omy program instituted last April would partly offset that unexpectd charge by saving $323, 100000. Un- foreseen expenditures since last April tending to throw the budget further out of balance than the New Deal contemplated were listed as follows:
 Unforeseen Expenditures
 Expansion of the railroad retire. ment act, $ll3,ooo0oo.
 Congressional subsidies to farmer borrowers from federal land banks and from land bank commissioners, $40, 100000.
 Congressional refunds to states of certain social security revenue, $36,- 0O0,00d.
 Extension of PWA and increase in available funds, $25 5,000,000.
 Cotton crop loans, $l30, 0,000.
 Downward revision of treasury revenue estimates, $256, 100000.
 "These changes have had the ef- feet" MT. Roosevelt said, "of in- creasing the deficit of 418,000, 900 of last April by $6oo,o0o,000 but that there will be savings under other items of expenditure amounting to $323 ,000,00 which will result in a net deficit of $695, ,245,0 ,000.
 Receipts of Fscal Year
 "The receipts for the fiscal year 1888 are now estimated at $6,660,- 100000, and the expenditures, ex- cluding $200, 100000 for debt retire. ment, at $7,345, 100000.
 "The present estimated receipts represent decrease under the esti- mates contained in the 1888 budget, and a decrease of $256, ,00,0 ,000 below the revised estimates of April 20. This decrease is more than account ed for by the reduction in the esti- mate of income and social security taxes.
 "The expenditure requirements, excluding debt retirement, are now estimated to be $89, ,000,0 900 more than was anticipated last January after adding $l l,500, 100000 for work relief, an $2l, 100000 more than the revised estimates of April 20.
 Add to Expenditures
 "AS previously stated charges which have occurred since last April have added $344, 100000 to the esti- mated expenditures, but there have been offsetting reductions in other expenditures amounting to $323,- 100000.
 "A part of this reduction was in the estimated expenditures under the old age reserve account. While the former estimate of expenditures for investments under this account was $540, 0,0000 900 1t has been found, upon a re-examination of the status of the fund, that the total amount of investments in the account on June 30, 1888, should be $690 000, 900. 1nasmuch as 5000, 900 was invest ed prior to this fiscal year the re- maining amount necessary to place the fund in proper status at the end of this fiscal year is 5000, ,000, a reduction of $ll5,000,0o0 in the amount previously estimated.
 "The remaining reductions amounting to $208,000,000 are &C., counted for by savings to be ac- counted for by administrative action in curtailing other classes of ex- penditures."
 CategorieS of Spending
 MT. Roosevelt budgeted in 1897 and 1888 to put an aggregate of $765 100000 in the old age reserve account, Ills new program reduces that sum by $75,000,000. The October budget breakdown of expenditures reveals that MT. Roosevelt's April economy orders to earmark 10 per cent of all salvagable appropriations for savings was effective on @ wide front. But four categories of spend-
 April January mn ca oOR mn nnn N7 0oo nOn nnn