Evening star., 1945-08-02
BY J. A. FOX.

War cOSLS-acGual ana prospective
will amount to $430, ,000, 900 900 by
next June 80, and the public debt
will approximate 1896, 200 900 900, as
compared to the statutory limit OF
$500 ,O0O, 900, 900, according to revised
estimates of the Budget Bureau for
the fiscal year 1946, which are based
on the assumption that the fighting
in the Pacific will continue.
Recasting the figures that went to
Congress In the annual presidential
budget message in January, Budget
Director Harold D. Smith said in a
statement last night that the orig
inal estimate of $4,000, 900, 600 for
war this year still held good, and
that this would bring the actual cost
since rearming started in June. 1910,
to $3.50, 900 100000, which includes
net commitments and outlays OF
Government corporations.
50 Demobilization Costly.
At the end Of the fiscal year, Mr.
Smith continued, there still will be
unobligated authorizations of $10,-
900 900 900 and unliquidated obliga-
tions of about $4,000, 900, 900. He
added:
"The bulk Of these authorizations
will be needed for procurement be-
yond the fiscal year 1946 II the war
against Japan continues. Even in
the event of victory some of these
authorizations will be needed for
meeting expenses incident to the
liquidation of the war effort. Not
only war, but also rehabilitation OF
the war machine is costly"
At the same time, the budget chief
pointed to retrenchment already un-
dertaken by President Truman ana
promised further steps in this direc-
ton with favorable progress of the
war against Japan" He stressed
that I'VE are determined to make
prompt adjustment of military re-
quiremerit and related budgetary al
lowances to the strategic situation.
No Tax Relief.
However, he repeated the theme
OF both the Roosevelt and Truman
administrations-that so long as the
fighting continues. no tax relief can
be expected.
An expenditure of $4,000, ,000, 900
for war amounts to % per cent
cut under the 1945 fiscal year. With
nonwar expenditures of $4,000 ,000,-
900 it will bring the national budget
to $85, 900 100000 as compared to the
record total of 100000, 900 900 in
fiscal 1945.
Contemplated nonwar expendi-
lures are up about $4,000 900 900 over
the January estimate as the result
primarily of the commitments for
participation in the Breton Woods
program for an international none
tary fund and an international bank
for reconstruction and development
Breakdown of Costs.
The breakdown on war expendi-
lures is s3s, ,O0O, ,Oo0, 900 for the Army;
s23, ZOO, ,00O, 900, Navy; $1,000 ,O00, 900,
Maritime Commission; $4,000 ,000,-
900, War Shipping Administration,
and s3,7O0 000,0 900 for other activities,
including occupation and relief costs
in Europe.
On the overall outlook, the budget
director said:
Expenditures for munitions and
war construction are expected to be
reduced by $4,000 900 900 in the cur
rent fiscal year. Much of the cut
back in production schedules will not
be effected until the latter half OF
the year BY June, 1916, the rate
of aircraft production will be two
thirds of the rate in March, 1915;
merchant shipping tonnage coming
off the ways during the fiscal year
1946 will be only 81 per cent OF the
tonnage produced in the preceding
fiscal year. -.
New naval ship construction pro-
grams also will decline about one
half from the fiscal year l945 out
put. The reduction in new ship
construction will be partly offset by
an increase of over 80 per cent in
ship repair and maintenance for
our naval and merchant fleets over
the level of the fiscal year 1945
Our Navy is reaching its peak
strength, and its operation and
maintenance will require large ex-
penditures as long as the Pacific
war continues.
Lease-Lend Falling.
'The programs under lease-lend
and other aids to foreign countries
are being fully adjusted to the new
war situation. Lease-lend transfers
of munitions are expected to drop of
sharply, but essential aid will con-
tinue during the current fiscal year.
Director Smith said two-thirds of
the expenditure for purposes other
-