Evening star., 1950-07-04
j. 5. Goes in Red
For 18Th Timei
Last 70 Years
Fiscal Yeur Deficit
Is $3,122,102,3 ,357,
May Rise Higher

For the 18th time in the last 20
years the Federal Government has
spent more than it collected-go-
ing $3,122, ,102 ,357.45 into the red
for the 1850 fiscal period which
ended June 80.
This was disclosed by the Treas
ury in closing its books yesterday
showing Government spending for
1850 amounted to $40, ,166, 1885,
91492. Revenue for the same
period totaled $37, ,044. 733,557.37.
AS large as the deficit was, it
represented 40 per cent less than
the administration had forecast
only two months ago.
It was the 85th time in Amer
ican history that Federal spending
exceeded revenue against "a sur
plus years.
Defense Outlay to Rise.
It also was the fourth deficit
period in the six fiscal years since
President Truman took Office.
The deficit was announced as
the United States faced another
year of uncertain spending with
the shooting war under way in
Korea and the likelihood that
defense expenditures must sky
rocket during fiscal 1851.
AS it figured out, the Govern
ment spent $110 million a day
throughout the 1850 fiscal period
and went $8.554. 900 deeper into
the hole every "a hours.
In doing so, it lifted the cumu-
lative debt to $257, 1915 1855, $3.50. oil
about $1,704 for every living |
American.
Greater Deficit Expected.
The bright aspect afforded by |
comparison with administration |
estimates faded when fiscal 1850 |
was matched against the preced-
ing year.
The 1850 deficit topped that of
fiscal 1949 by $1.311 200, 900 chief
ly because its revenues had been
dropped $1,201 ,000, 900 lower as a
result of the recession"
There was apparent likelihood
Of still greater deficit in current
fiscal 1851, which began this
month, since 1950's improvement
over the official estimates was
largely due to tagging outlays that
should swell this years previously
estimated costs.
The administration has estimated
q $500, ,000,0 900 deficit for this
year. but the actual outcome will
hinge largely on what Congress
does with the still-incompleted ap-
preparations and tax bills.
The Treasury figures for fiscal
1850 revealed that President Tru-
man, in preparing his budget last
January had overestimated spend
ing by $3.50, ,000, 900 and also had
overestimated tax revenues by
$718 million.
Biggest Saving on Defense.
The administrators revised esti-
mate of April 90 proved to be a
81 1888 100000 overestimate of
spending but a $445 million under
estimate of tax receipts.
The biggest saving from Janu-
ary budget allowances was 81 ,030,-
100000 on defense, where costs
totaled $13,496, 900 900.
The Marshall Plan cost 1912 mil
lion, or roughly 10 per cent, less
than the 1895, 900 900 it had been
budgeted for and the foreign arms
aid-mutual defense assistance
pact-cost $44 million of the $500
million allowed for it.
OF $40 million budgeted for
Korean relief and recovery, $40l
million was spent.
RFC Outlay Below Estimates.
The big savings item in domestic
operations was on the Reconstruc-
ton Finance Corp, where outlays
were $3.50 million or little more
than half the 81, ,034. .000. 900 budg-
eted. Chief reason: Mortgage
buying wasn't as heavy as had
been anticipated.
The Atomic Energy Commits
sion used 1924 million of its $673
million budget. Maritime activi-
ties cost $94 million against a.
budgeted 1852 million, public roads
$486 million against $508 million.
Some programs, however, ex-
ceeded budgeted costs. The farm
price support program admins
tered by the Commodity Credit
Corp. was down for 1856, ,000, 600
In the budget, but it cost $1,713,-
100000.
The Labor Department cost $40
million more than the $218 mil
lion budgeted for it. The Post
Office, figured in the budget by
the amount it goes in the red,
ended up $593 million in the hole
against expectations of 1868 mil
lion.
Shenandoah Relief Man