Evening star., 1940-08-05
u. 5. Spending 0ut|a,
For Year May Exceed
S20,o00,000,o00
Apparent Deficit Of
$4,000, 900, 900 Is
Due to Be Much Less
Ey the Associated Press.

Ey the Associated Press.
The Budget Bureau, adding up
pyramiding defense outlays. found
today that pending appropriations
and contract authorizations may
push this CONGRESSES spending total
above $4,000, 100000.
This figure would not only be the
largest in peacetime history, but
would be more than double the
amount actually spent in the last
fiscal year.
Statisticians found that Congress
already has appropriated $I3,S24,-
052,l24 and has authorized contracts
for an additional $1,000, ,4s7 ,00e.
These funds cover all regular Gov
ernmental costs, as well as special
defense items.
Pending Appropriations.
Main pending items are an ap-
preparation estimate of $2,237, ,191,-
957 and contract authorizing re-
quest of $2,732, ,960, 1000, both in the
latest defense bill. Altogether, COM
pleted and pending expenditure pro-
posals total $19,920, 1888 ,090.
Extra funds to pay for extraordi-
nary training of the National
Guard and for conscription would
be required if Congress approves
those military measures. They prob
ably would put the total over the
$4,000 900, 900 mark.
The revenue ledger of the Gov
ernment also is showing gains
although huge deficit is taken for
granted. Taxes already enacted, in
Guiding the new defense levies, are
expected to bring in this fiscal year
lending June 80, 194D about So
367600,00O.
To this may be added a substan-
tial sum from the proposed excess
profits tax, now being framed by
the House Ways and Means Com
mlttee. Yield of this levy has been
estimated at from S5O0,0OO,000 to
S75o,00o,00O a year.
Apparent Deficit $4,000, ,00O, 900.
Not even the Budget Bureau is
able yet to guess what the deficit
will be for this fiscal year. The
apparent deficit is more than $13,-
O00000,000, but the actual one may
be only about fourth as much.
Officials explained that revenues
may turn out, especially if an ex-
cess profits tax is enacted, to be
much larger than anticipated and
expenditures may be much smaller
than they appear
The nearly S4,0O0,0OO, 900 of con-
tract authorizations, for instance,
may not require actual cash out
lay by the Treasury until a later
year. Thus, the Army might sign
a contract for $100,00O,OO0 worth of
alrplaneS tomorrow, but the Treas
ury wouldn't pay for the machines
until they were finished, which
might be 1912 in some cases.
"If and When" Basis.
Even the cash appropriations are
rated on an "if and when" basis
Department officials have asked for
as much money as they think thev
Will need. If all is not spent. it will
either lapse or go over to another
year.
Defense projects have accounted
for more than half of the money so
far involved in completed or pending
measures. The Army and Navy to-
gether are booked for S6,776, ,8O4 $40
OF appropriations, plus s3.445, ,780, ,397
OF contract authorizations.
Other large appropriation items
include relief, s1,157,711,3 1857: interest
on the public debt and other Treas
ury expenses, $1,911 ,329 1903: Agricul-
ture Department and farm programs
SlO25, 5000; Federal Security
Agency (mostly social securitv)
1856, ,693, 400: executive and inde-
pendent offices, 81 ,121 ,67e, ,4O3.