Evening star., 1948-06-28
Budget Surplus
Near 3 Billion
To SET Record
Most of Funds
Already Used to
Cut Federal Debt
~ me Assoeiotsd Press

BY me Assosiotsd Press
A vast new record will be set by
a budget surplus of nearly $1,000
600 900. it was indicated today, only
two days before the end of the Gov
ernnents 1948 fiscal year. The
previous high was set II years ago.
1t was only 31,155, ,000, 900 then.
But 1t will just be figure on
paper.
Most of the money itself-s6 ,683,--
600 ,000-already has been used to
lower the Federal debt to about
s251 ,600, 100000, 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, 900 900.
Reflects Excess Income.
The surplus reflects the excess Of
Government income over spending.
Technically. $4,000, 0,O00, 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 OO0, 900 of the money that actu-
ally Is to be paid out for recovery
abroad in the IL months beginning
July / be charged as an expense
in this fiscal years budget, raising
the book value on spending this year
by $4,000, 100000 and reducing the
surplus like amount.
Purpose of the bookkeeping shift
is to bolster next years budget,
which otherwise might show a def1-
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 s2,5O0.-
100000 in the cash balance to be on
the safe side. It's expenses will be
running about $4,000, 100000 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 momentary budget sur
plus of s8.750000,000 with just one
week to go in the fiscal year.
That was over $1,000 OO0. 900
higher than the $7.482, 900 900 sur
plus President Truman has pre-
dicted would be achieved at the
end OF the year June 30.
But heavy year-end expenses, in
cluding about $700, 1000, 900 in in
terest on the debt. are now expected
to reduce the final surplus for the
II months ending Wednesday to
around $1,000 000, ,000-well over the
Presidents estimate despite the in
come tax cut, which he didn't take
into account.
Principal reason for the higher
SUI 1plus is the lag in spending under
the s37. .727 100000 Mr.. Truman esti-
mated it would total. With week
to go. expenditures were still $685.
c0O, 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 1s48, amounted
to only $37,0O0,00O with just seven
more days to go.
On the expenditure side the
Government will be getting off
lighter this year than budget ex-
perts expect it will in the next few
years. barring sharp reduction in
military or foreign aid outlays.
A House Republican leader issued
q statement claiming Congress saved
$2,74l ,48l ,29l in looping off money
from the Presidents 1913 budget re-
quests.
Cudli1IldI 1 dUcl VI tile hppiop To-
tions Committee. blasted the execu-
tive branch of the Government as
being in "demoraliZed condition
His statement blamed Mr. Truman
for the frantic last-minute labors of
Congress
"Everywhere there is complete
confusion and inefficiency,' 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
~ractico for tho mast 92 wears"