The Wilmington morning star., 1947-08-21
Truman Reviews Budget

Republican congressional leaders
have placed the cuts made in the Presi-
dents budget requests v~ariously from
four to six billion dollars. In it's sum-
nation Immediately after adjournment
the Associated Press figured the reduc-
ton at $2,777, 11O, 1875.
Yesterday, President Truman, in his
review of the budget, said that savings
voted by Congress on expenditures for
the current year total $1,520,000, 900.
Having had an exhaustive study made
of congressional action on the budget
we may infer that Mr.. Truman had
adequate reason for fixing Upon this
amount as approximately correct. On
this premise we may also infer that
the larger amounts named by republi-
can congressional leaders was so much
campaign ballyhoo.
Mr.. Truman pointed out, as Sena-
tor Byrd and other members of Con-
gress had previously noted, that esti-
mated savings on appropriations and
expenditures are two different things.
It seems important to quote Mr.. Tru-
mar on this matter, as the budget is
bound to have a vital place in the
1913 political drama. Note what he
says:
when we come to consider the
changes in the expenditure side Of the
budget in detail, we must consider the
differences between expenditures in a
given fiscal year and the authority to
incur obligations which result in. ex-
penditures. Appropriations and ex-
penditures are by no means the same
thing.
"The Congress, by enacting ap-
preparations and contract authoriza-
lions, empowers government agencies
to incur obligations. The appropria-
tions permit expenditure of money in
payment of these obligations. In the
case of the contract authorizations,
an appropriation to liquidate' is re-
quired before expenditures can be made
to pay off the obligations.
Expenditures occur when obliga-
lions are paid off. Thus, appropria-
tons to permit obligations this year
may not affect expenditures until next
year or the year after. On the other
hand, this years expenditures in part
pay off obligations incurred under
earlier appropriations. In the case Of
government corporations, moreover,
only a small part of the expenditures
is made from appropriated funds, and
the receipts of the corporations are
generally treated as offsets against
their expenditures. For these reasons,
we can expect no precise correspondence
between appropriations and budget ex-
penditures in any one fiscal year."
The President was dealing with
grim reality when he reminded the
American people that "about three
fourths Of Jul expenditures relate d.
rectly to war, the effects of war, or
our efforts to prevent a future war;"
Reduced to levels we a understand,
he showed that % per cent of the ex-
penditures provided for 1913 are for
national defense, 20 per cent for vet
Grams service and benefits, IA per cent
for interest on the national debt-large-
ly a result OF war-and almost IL per
cent for our international programs and
activities for world peace. Only 81 per
cent is available for all other govern
ment programs. AS these tot up to
1O1 per cent it is to be supposed that
somewhere in the computations a broad
estimate was substituted for an exact
figure.
1t may be true, as Mr.. Truman de-
clared, that high prices, taxes, incomes
and employment will produce the big
gest treasury surplus in the nations
history. If it all works out this wav.
the people will ultimately have some
relief from the tax burden. Here's
hoping.
Further Streamlininp