Evening star., 1949-01-10

President Truman today asked
Congress to approve Government
expenditures of $41,858, 900, 900 in
the fiscal year opening July Ia
record peacetime outlay.
More than half the amount re-
ouested by Mr.. Truman-about S21,-
0000O0000 - would be for defense
and foreign aid programs, and the
President served notice that addi-
tional funds are likely to be needed
to carry on the cold war" by eX-
tending military assistance to West
ern Europe and other strategic
areas.
Sending to Capitol Hill the budget
message which rounds out his gen.
eral legislative slate. the President
also called for approximately S2000.-
100000 in new taxes to finance eX-
panded social security and health
programs. This would be in addi-
ton to the S400O000,000 increase in
corporate and personal taxes al
ready recommended in the state of
the Union and economic messages
to balance the budget and reduce
the public debt of s252 100000, ,OO0
The Government expects to end
this year with a deficit of S60O,0O0,-
900 as compared with a surplus of
nearly S8,5O0O00,OO0 in July, l948
Improved business conditions, how
ever, cut the prospective deficit
which once was figured at around
Sl,5O0.OOO 900.
1947 Tax Cut Blamed.
The President pointed out that
the S4,800.000,000 tax cut passed last
spring over his veto had created the
deficit and prevented a siZafde re-
duction in the public debt
In the absence of new tax legisla-
ton a deficit of $873000,000 is fore
cast in the new fiscal year, when
the Federal revenue is estimated at
S40,985 100000
Current year revenue is figured at
s39, ,580,0O0,000 and expenditures at
$40 10000
Revenue is calculated on a pros
pective S215 900, 100000 national in
come.
Mr.. Truman pointed out that the
postwar budget continues to be
dominated by the international de-
fense programs" which account for
S21 600, 100000.
1t also would bring into opera
ton, in addition to expanded well
fare plans, the ambitious housing
and education program on which,
the winning Democratic campaign
was pegged.
Want Powerful Military.
Asking for ,30O,0O0,00O for ma
tional defense as compared with
S11 300 100000 this year, Mr.. Tru-
man said the military forces rec
commended in this budget are the
most powerful this Nation has ever
maintained in peacetime."
International affairs and finance
account for another $6,700,000 10000
this years figure is s7,200,000,000-
of which Western Europe gets the
larger share for economic aid.
But in existing circumstances,
economic strength is not enough to
assure continued independence to
free peoples" the President eX-
planned. Under the Charter of the
United Nations, therefore. we have
been discussing with some of the
Western European countries meas
ures designed to increase the secur-
ity of the North Atlantic Area. To
further this objective, I expect later
to request funds for providing mill
tary supplies to those countries and
to certain other countries where the
provision of such assistance is i'm
portant to our national security. It
is not possible now to predict ac-
curately what will be needed and
have therefore included no allow
ance in this budget"
Marshall Plan Cost to Decline
A breakdown on Marshall Plan
expenditures puts the estimated
outlay this year at $4,000, 100000 and
next year at S4,500,O00, 900. Provi-
sion also is made for spending
S355,Oo,o00 in Greece, Turkey, China
and Korea, although the total ap-
preparation sought is $500, ,OO0O 900.
Army occupation costs are esti-
mated at 100000 900.
European recovery, the President
said, is costing about 70 per cent
of the total spent for international
commitments, but the nations there,
he continued, ar making "substan-
tial progress toward economic re-
covery and political stability"
Because of this progress, the
President expects decline in ex-
penditures. He stressed, however,
that the present world situation
makes any prediction of ultimate
needs "hlghly tentative"
And as high as the national de-
fense figure is. with total authori-
cations Gncluding spendingD going
to s15,9O0, 100000, Mr., Truman said