Evening star., 1948-06-28
u. 5. Budget Surplus
'0f Near Eight Billion
Ito Set New Record


To Set New Record
BY me Assoeiotsd Press
A vast new record will be set by
q budget surplus of nearly $s,ooo,.
600, 900, it was indicated today, only
two days before the end Of the Gov
ernment's 1s4s fiscal year. The
previous high was set 81 years ago.
1t was only sl.l55. .oo0, 900 then.
But 1t will just be . figure on
paper.
Most OF the money itself-$6 ,683,--
600 o00-already has been used to
lower the Federal debt to about
s251 soc, 900 600, an analysis Of
Treasury records showed today.
The rest. about 81 400, ,000, 900 has
gone into the Treasury's cash cof-
fers, swelling its cash balance large
ly kept in banks over the country
to $4,000, ,000, 900.
Reflects Excess Income.
The surplus reflects the excess Of
Government income over spending.
Technically, $4,000, ,000, 900 will be
cut out Of this years surplus and
In effect transferred to next year
when President Truman signs the
foreign aid appropriations bill. into
which Congress wrote a provision
for the transfer.
This provision requires that So
900 900 900 Of the money that actu-
ally is to be paid out for recovery
abroad in the IL months beginning
July l be charged as an expense
in this fiscal years budget, raising
the book value on spending. this year
by $4,000, 900 900 and reducing the
surplus a like amount
Purpose of the bookkeeping shift
is to bolster next years budget.
which otherwise might show def
cit. This will be done at the ex-
pense of the current years surplus.
The latter, even If cut $4,000, 900 900,
will still be more than double the
old record.
Treasury Retires Debts.
The Treasury has been using sur
plus money for debt retirement from
time to time as the cash piled in.
1t always keeps at least $780,
000,0 in the cash balance to be on
the safe side. Its expenses will be
running about $4,000, ,000,0 in the
next II months and there is vast
amount Of savings bonds and other
securities that could be turned in
for cash at any time.
The Treasury's newest data show
there was a momentary budget sur
plus of s8,750,0 ,000,0 900 with Just one
week to go in the fiscal year.
That was over $1,000, 900, 900
higher than the s7,482, ,000, 900 sur
plus President Truman has pre-
dicted would be achieved at the
end of the year June 30.
But heavy year-end expenses, in
Guiding about 100000, 900 In in
terest on the debt, are now expected
to reduce the final surplus for the
II months ending Wednesday to
around $1,000, 900, ,000-well over the
Presidents estimate despite the in
come tax cut, which he didn't take
into account.
Principal reason for the higher
surplus is the lag in spending under
the $37, ,727, ,000, 900 Mr.. Truman esti-
mated 1t would total. With a week
to 60. expenditures were still $2,825,-
600, 900 short of that figure.
Expenditures Down.
The lower expenditures result in
part from slowness in foreign aid
spending. Those for the European
Recovery Program, budgeted for
$500, 900 900 in fiscal l948, amounted
to only $37,000,0 900 with Just seven
more days to go.
On the expenditure side, the
Government will be getting of
lighter this year than budget ex-
perts expect it will in the next few
years, barring a sharp reduction in
military or foreign aid outlays.
A House Republican leader issued
a statement claiming Congress saved
$2.741 ,481 ,29l In looping off money
from the Presidents 1948 budget re-
quests.
Chairman Taber of the Appropria-
tions Committee, blasted the execu-
tive branch of the Government as
being In a "demoralized condition ="
His statement blamed Mr. Truman
for the frantic last-minute labors OF
Congress.
Everywhere there is complete
confusion and inefflciency," Mr..
Tabor said, referring to the execu-
tive department.
president Truman-evidently to
prove to the country the total in
competence Of his administration
failed to present to the Congress the
major budget requests at the open
ing of Congress in January as the
law requires and as has been the