Evening star., 1944-08-02
Revised Budget Based
On Early Nazi Defeat,
Longer War on Japs
OfficioIs Feel Conflict
In Pocific Will Extend
Through Middle Of AS
By J. A. FOX.

War expenditures are being sched-
uled on a basis that looks to the
possibility of Germany being beaten
before next June, but in the belief
too, that Japan will be able to hold
on beyond the middle of 1s45, the
Budget Bureau said today in a state
ment showing the war had cost this
country 5000, ,000, 900 900 as of June 80.
The statement, issued at the direc-
ton of President Roosevelt. incorpo-
rated revision of the budget figures
for l945 submitted to Congress in
January by President Roosevelt. It
disclosed that war expenditures were
running at the annual rate of
$93, 900 ,000, 900 as compared to the
SOC, 900 900 900 level forecast by the
budget message, and that the over-a
cost Of Government was at a rate in
excess Of $100. 600, 900 900. For the
fiscal year 1914, war costs were $780, :
TOO 90 900. Total authorizations
through June 80 next are placed at
1892 800 900 900.
Based on Hope.
"War expenditure estimates of
previous years have been based on
the assumption that virtually all
available resources were to be used
for meeting war needs, giving Sec
ond call to civilian requirements" :"
the Budget Bureau said. This
years estimates are Influenced by
the hope that the liberation OF
Europe may be accomplished before
the end OF the fiscal year 1945, while
the japanese phase Of the war is
assumed to continue all through the
fiscal year and beyond. The end
of hostilities in Europe should en-
able us to cut back many war con-
tracts, but cash payments will de-
cline only with q considerable time
lag. Particularly, expenditures for
pay and subsistence, including mus
terine-out pay, will remain at
high level all through the fiscal
year.
WAR expenditures in recent
months have been running at an
annual rate of about 500, 900 900 900;
thus a 500 0.000, 600 900 estimate for
the whole fiscal year implies a de-
cline in war expenditures during the
latter part of the fiscal year. These
estimates are, of course, of a highly
tentative character, and depend en-
tirely on the assumptions made with
respect to the course of the war. II
victory in Europe should be de-
layed, the production of munitions
will be stepped up to whatever may
be needed. II German resistance
should collapse earlier than as
sumed. expenditures for the current
fiscal year may be somewhat below
the $50 000, 900 900 estimate"
Not Prediction.
Budget Director Harold D. Smith
said the comment regarding the
end of the war was not to be taken
as prediction"
In the January budget message,
President Roosevelt told the coun-
try to be prepared for 18 months Of
hostilities, although he did not fore
close the possibility Of an earlier
ending on one of the fronts.
In planning for estimates for the
year ending June 80, 1916. the
budget statement said, agencies are
requested to submit estimates on
three alternative bases: Continue
tion OF the war on all fronts; end Of
hostiiities In one of the theaters, or
q windup both in Europe and the
Pacific.
I'm our planning, we must be pre-
pared for war % well Is for partial
or total demobilixation." the state
ment said.
The bureau now estimates that
the public debt win increase by $780,
~. 900. 900 Ii lo45, as compared with
the January estimate oftz110 900.