Evening star., 1948-11-07
Truman Favors
'Hard-boiIed'
Cut.in Budget
Webb Reveals Stand
On 16 Federal Units:
Military Not Included
Pictures ON Page A-5.)
By the Assoeiated Press

President Truman yesterda,
approved generally lower bud
gets for 16 departments and
agencies and his budget director
announced:
I'VE have adopted hard -boilec
budget policy"
Budget Director James E. Webt
did not name the 16 department.
and agencies whose estimates fol
expenditures in the coming fisca
year were approved.
He told reporters after confer.
ence with the President, however
that they did not include the mill.
tary services, and constituted only
about one-tenth of the entire con.
templated budget outlay.
He said the figures approved yes.
terday for the fiscal year which
starts next July l are "somewha
lower" than the current years bud.
gets.
Will Be Tight as Possible.
There may be a few cases where
they are higher, but generally speak.
ing they will be lower" he said
adding that the budget will be made
as tight as possible in order to gel
as nearly as possible to balance.
However, he would not estimate
the total of the new budget, cl
whether there will be a deficit al
the end of the present fiscal year.
This years budget is $4,000, ,00O,.
600. Last August Mr.. Truman es.
timated there would be a $780,
100000 deficit next June 80, because
of the Republican tax cut and other
factors.
THE Presidents policies will be
to hold down expenditures to the
lowest possible level which will meet
the needs of the country" Mr.. Webb
said. When we do that, the ques-
ton of whether we have a surplus
or deficit depends on revenue"
Conforms to Directive.
Although yesterdays conference
did not concern the military. the
President recently announced that
he has asked the armed services to
trim their original estimates of
around $23, 1000, 100000 down to $15,-
000, ZOO, 900, of which $500, ,000, 900
would be for stock-piling strategic
materials.
Mr.. Webb said that the estimates
approved yesterday conform to q
directive Mr.. Truman sent to all
departments and agencies last July
%. His instructions then were to
plan to continue operations at or
below the current years level-"un-
less exceptional circumstances clear
ly make this impossible"
The letter, made public yesterday
for the first time, told the depart
mental officials that "for budgetary
purposes it should be assumed that
production and employment will
continue high. Prices and wages
should also be assumed to continue
at about the August 194e
levels"
Warns Against Deficiency Plans.
The President directed his admin
istrators to cover all foreSeeable
needs, and make no assumptions
that deficiency appropriations will
be forthcoming to cover deficits.
Expansion of existing activities
or initiation of new ones should
not be contemplated, unless re-
quired by law or to meet urgent
needs he admonished them.
He also said that Government
power producing and transmitting
projects in shortage areas should
be planned "at an economical rate
which will meet the demand at the
earliest possible date" New author
lied projects, he said, should be
started only where the public need
for them is so urgent that it is not
in the national interest to postpone
them"
Mr.. Webb said that the policies
now being followed will be adhered
to in reaching estimates for the
other divisions of Government.