Evening star., 1949-12-11
Truman Is Expected
To Make Budget Cuts
OF About Half Billion
BY ti,s Asseeiafsd Press

President Truman may work out
q budget calling for expenses q
half billion dollars or more below
this fiscal years indicated spend
ing, it was reported yesterday.
Offlcials in touch with the situ-
alton said the figure is likely to
be in the $4,000. .0o0, 900 to $43,-
000, 0,000, 900 range, probably nearer
the latter. Final decisions still are
pending on some items, 1t was
said.
Budget spending the current
year ending next June 80 will run
about $43. 500 ,000, 900.
This wouldn't be enough of a
cut to balance the budget unless
taxes are increased. Mr.. Truman
has made 1t clear he sees no other
way than increased revenues to
halt deficit spending. The budget
will be handed to Congress next
month.
Amount Depends on Decisions.
With tentative revenue expecta-
tions at the $38, ,000, 900 900 level
Of. this year and last. the present
outlook appeared to be a deficit
of $4,000.00 900 to $4,000, ,00o, 900
for fiscal 1851.
For the current fiscal year, now
close to its mid-point, the deficit
meaning the margin by which
the Government is overspending
Its income-is currently estimated
officially at $500, ,000, 900.
officials discussing the matter,
but unwilling to be named, stressed
that the precise outcome will be
determined by decisions now be-
ing reached by the President and
his advisers at Key West.
Mr.. Truman was reported hope
ful that Federal spending from
here on out will be downward from
the current fiscal years peace
time record Of $43. 500, 900, 900.
"Cold War" One Factor.
4uC dO1114ilot4 dtlOIl U1dlllCo Vic
"cold war" with Russia for most
Of the sharp rise in Federal costs
this year and last from the post
war low of $50, ,066, ,0o0, 900 in fls-
cal 194S.
The size of the spending figure
and cut-will vary considerably
according to such final presiden-
tial decisions as whether to ask
Congress again to set up universal
compulsory military training.
That alone was a $500 900 ,00o
item in last January's budget
and one which some advisers hope
Mr.. Truman will drop this time,
since Congress has ignored it
twice.
Mr.. Truman is reported sure,
however, to push again for an
other hitherto unsuccessful pro-
posal - federal aid to education
despite the $500. 100000 a year
cost tag 1t carries.
The peak Of the Marshall Plan
spending will have been passed
next year. and occupation costs
in Germany and Japan are ex-
pected to decline. However, this
is expected to be Offset in part
by ascending costs of the military
aid program for friendly nations
overseas.
Veterans Pensions to Climb.
There may be reductions, in
some other items, such as vet
erans' readjustment benefits
(schooling), which now cost 3d.
600, 900 900. !
On the other hand, military
costs are likely to account for
$4,000, 100000, or nearly one
third of the entire budget.
Veterans pensions, a 1900, ,000,-
900 item this year, are figured to
be on a long but gradual climb
in contrast to veterans school,
ing costs. Also on the upward
path is interest on the federal
debt, a major budget item at $5,-
100000, 900 a year now.
Mr.. Truman is figuring to show
In this years bulge that some
of the spending cost" figures he
lists actually represent loans on
which the Government is expected
to get back money in later years.
This will be done by presenting
tables that will show that the
Government is acquiring assets
dams, buildings, etc.-for some OF
its outlays, thus in effect making
an investment.
OF q similar nature will be list
ings showing some Federal Eek
penditures" actually are money
turned over to the States and
spent, in the usual sense of that
word, by the latter. Likewise,
there1l be listed subsidies" to
business, farmers and individuals.