Evening star., 1941-01-08
Budget Total 7,485, 100000;
Arms Lease F und Not Included
In $10,811, 100000 for Defense
Roosevelt Predicts
National Income Of
$86, 900, 900, 900
By JOHN c. HENRY.

President Roosevelt presented to
Congress today an estimate OF Sl7,-
485 100000 for his 1912 fiscal year
budget, and informed the legislators
that a contemplated program for
financing wartime aid to the fight
Ing nations to preserve their free
dom. would call for appropriations
and authorizations beyond this
total.
OF the fiscal program budgeted'
the Chief Executive marked Slo,-
8l1,OOO for defense purposes. Adoeo
to appropriations, AUTHORIZATIONS
and recommendation for the tlScal
years 1910 and 194l. this new defense
item brings to S28,480 100000 the
sum involved in the Nations cur
rent effort to arm itself.
In contrast to projected Federal
appropriations and authorizations
for the coming fiscal year, the PreSl-
dent estimated in a special budget
press conference yesterday that the
national income will reach a new
high during the same II months OF
between $50 100000 and s88,ooo'-
100000.
Record Tax Yield Expected.
Likewise, he estimated that total
tax receipts for the same period on
the existing rate structure would
reach new high mark of S8,971 ,O00,-
600. Net receipts, after deduction OF
appropriations for Federal old-age
and survivors trust fund, Will be
sS275.0OO,000. it was estimated.
Matched against the spending lg-
ures for the year this net reve-
nue. would leave deficit OF s9'2lo'-
100000. Upward revision OF tax
rates or enactment of new levles
would affect this figure. OF course!
For the present fiscal year, MI
Roosevelt, in his message today, pre-
diets a deficit of s6,l69,OOOo0O from
a budget in which expenditures are
listed at S13,542 900 900. as compared
with net receipts of s6.889 100000.
When the 1941 budget originally
was estimated year ago, eXpendl-
lures were estimated at S8,400000 600
and net tax receipts at S5, SAB 600 600.
Questions Debt Limit Value.
without making fully specific rec
concentrations, the President Sug-
eested that "a start should be made
this wear to meet a larger percentage
of defense payments from current
tax receipts" At the same time,
he acknowledged that a substan-
tial part of the defense program
must be financed through borrow
ing.
In connection with borrowing,
which may carry the public debt
beyond statutory limits, the Chief
Executive challenged inquiry and
speculation by adding that Il ques-
ton the significance of statutory
debt limit, except as it serves as a
fiscal monitor"
Throughout. 1t was budgetary
program amply fulfilling the Presi-
dents own description of it as "a
reflection of a world at war" an
instrument through which this Ma
ton prepares for its total defense.
Aid to Others Not in Total.
"T'his means warships, freighters,
tanks, planes and guns to protect
us against aggression" Mr.. Roose-
welt said, land jobs, health and
security to strengthen the bulwarks
of democracy"
Although the overall figure OF
S17,485 100000, which the President
emphasized is fully for our own
purposes and is set up on a basis
of existing law, adheres pretty close
ly to advance guesseS, the declara-
ton that costs of financing war
time aid to the democracies will
be additional opens the way to a
far greater budgetary total. Refer
ring to the first total, Mr.. Roose-
velt continued:
'.In addition to, but essentially
and rightly as complement to this
program, the time has come for
immediate consideration of assur-
ing the continuation of the flow
of vitally necessary munitions to
those nations which are defending
themselves against attack and
against the imposition of new forms
OF government upon them.
Such a Complementary program
would call for appropriations and
contract authorizations over and
above this budget. The sum OF
all these defense efforts should be
geared to the productive capacity
of this Nation expanded to literally
its utmost efforts"
In similar vein the President
cautioned further that, mo one can
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