Evening star., 1940-01-04
By JOHN c. HENRY.


President Roosevelt transmit
ted to Congress today the Fed
eral budget for the fiscal year
1941, estimating essential ex-
penditures at $8,424,OO0,OOO and
normal receipts at $5,548,OO0 900.
On the basis of these two esti-
mates alone the deficit for the
fiscal period beginning next July
l would be $2,876, 100000. This
figure is reduced to $1,716,OO0,0 900,
however, by the addition of a
recommendation for a special
defense tax of S46O,OOO,OOO and by
the proposed recall of S700 100000
in excess capital funds of Govern
ment corporations.
A deficit of S3,933,0 900 is ex-
pected this year. The 1941 deficit
will be the eleventh consecutive one
under Roosevelt and Hoover admin
iStrations
Mr.. Roosevelt's estimate of ex-
penditures is roughly S675 900 900
below the estimate of 5000 900, 900
for the present fiscal year, while
estimated normal revenue of the
1941 period is about 1882 900 900
above the 1910 calculation Of S.
166 100000. For the fiscal year
1910 apIaI Loot J,,po an cor,ror
able recorded expenditures We're So
TOT ,091 $50, receipts were IS ,164 ,823,-
625 and the net deficit was s3,542,-
267.954.
S1,S0O 900 900 for Defense.
Largest item in the expenditure
category for the coming fiscal year
is that for national defense to a
round total OF $1,000, ,000,0 900, slightly
lower than had been generally ex-
pected, just as was the figure for
total expenditures.
Certain defense construction prof.
ects under other budget categories
push the S1,8O0,000,000 somewhat
higher.
In simplest form, the Presidents
other principal divisions of estimat-
ed expenditures were broken Gown
as follows:
Work relief programs-S1.3 300 ,000,-
600; agricultural programs, $780,
100000; public works and invest
ments-sl 00,O0O,0O0; pensions, re-
tirements and assistance-$1. .200,-
100000; interest on public debt
81 100 100000, and regular operating
costs-sl ,O0O,O 100000
The only material increases we're
in estimates of national defense and
social security costs, most of the
other estimated expenditures reflect
ing downward trend =
Presidents Lowest Figures"
q have carefully checked the in
dividual estimates under these broad
categories," Mr. Roosevelt wrote in
the presentation message read for
him to the Congress, land I am sat-
isfled that no lower figures can be
attained except at the expense OF
impairing the efficiency with which
laws are administered or of working
undue hardship on individuals and
economic groups. I refuse to accept
the responsibility of adopting either
alternative"
Excluding $10O,OOO,0OO for debt re-
tirement, the President noted that
appropriations, as distin-
guished from actual expenditures,
are estimated at s8.101 100000 as
contrasted with S8.889, 100000 in the
fiscal year 1940."
With an apparent significance
that Congress is not likely to over
look the Presidents most favorable
estimate of deficit of only $1,7l6,-
100000 for 1941 would delay for an
other year the distressing choice of
either raising the statutory debt
limit above the present S45,000000,-
600 maximum or making drastic
fiscal revisions in other directions.
He estimated that the public debt
at the beginning of the new year
will be $43,222 ,346.O .O52, leaving just
sufficient margin for new deficit
Of S1,716, 100000.
This delicate balance will be upset,
however, if Congress should fail to
find quickly effective means of rails
ing the $460,O000 900 by special de-
fense tax. Other figures remaining
as they are estimated, the 1941
(see NATIONAL BUDGET, Pg A-4