Evening star., 1950-07-04
u. 5. Goes in Red
For 18Th Time in
Last 70 Years
Fiscal Year Deficit
Is $3,122,102,357,
Moy Rise Higher

years the Federal Government has
spent more than it collected-go-
ing 1922, ,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 40.166,835,-
914.82. Revenue for the same
period totaled $37 ,044,733 ,557.37.
AS large as the deficit was, It'll
represented 40 per cent less than
the administration had forecast
only two months ago.
It was the 85th time in Amer
lean history that Federal spending
exceeded revenue against "a sur
plus years.
Defense Outlay to Rise.
1t 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 1t figured out, the Govern
ment spent $110 million q day |
throughout the 1850 fiscal period |
and went 1854 900 deeper into
the hole every "a hours.
In doing so, it lifted the cumu-
lative debt to $257, ,376, ,855 $3.50. Oh
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 100000 chief
ly because it's revenues had been
dropped $1,201 .o00. 900 lower as a
result of the recession"
There was apparent likelihood
of a still greater deficit in current
fiscal 1851, which began this
month, since 195e'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 $5,200.000,0 900 deficit for this
year. but the actual outcome will
hinge largely on what Congress
does with the still l-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, 600. 900 and also had |
overestimated tax revenues byi
$718 million,
Biggest Saving on Defense.
The administrators revised esti-
mate of April 20 proved to be a |
1888, 100000 overestimate of
spending but $445 million under
estimate of tax receipts.
The biggest saving from Janu-
ary budget allowances was 81, $780,
100000 on defense, where costs
totaled $13.496. .000.000
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 $160
million allowed for it.
Of $40 million budgeted for
Korean relief and recovery, $40
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 4budg-
eted. Chief reason: Mortgage
buying wasn't as heavy as had
been anticipated.
The Atomic Energy Commits
sion used 1924 million of it's $673
million budget. Maritime activi-
ties cost $94 million against
budgeted $162 million, public roads
$486 million against $500 million.
/ Some programs, however, ex-
ceeded budgeted costs. The farm
price support program admins
tered by the Commodity Credit
Corp. was down for $1,556 ,000, 900
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 1858 mil
lion.