Evening star., 1952-07-20
This Tells Why U. 5.
Appropriates More
Than II Will Spend


The Government has authority
from Congress to spend about
|$157 billion but doesn't expect to
spend much more than half of it
during fiscal 1853, which started
July l..
Officials said yesterday they
couldn't spend the whole amount
before the fiscal year ends next
June 80 if they wanted to--and
they don't. They're figuring now
that this years actual expendi-
lures will be around $50 billion.
If the Government does spend
$50 billion, it will have to get $40
billion from borrowing, for its in
come from taxes and other sources
isn't likely to top $40 billion this
year.
Confusing? Well. it isn't bad at
all, if you get straight on one
basic point - the difference be-
tween an expenditure and an ap-
preparation.
Expenditure Explained.
An expenditure is easy to COM
Iprehend. just what it sounds like
payment. for goods when they're
delivered, or for wages and salaries
when they're earned. Payment is
lby check, and the money has to be
available before the check is
written.
Appropriation is what throws
people off. Many think you have
to have money before you can ap-
Ipropriate it; still more believe that
when there's an appropriation for
a specified year, it's the top
amount that can be spent in that
Iyear.
Not so, at least not in Govern
ment language, where appropria-
ton, briefly and simply. means
this: An act (passed by Congress
and approved by the President)
that Cd authorizes an agency to
spend, and CD requires the Treas
ury to see to it that the money is
available when needed, by borrow
ing if necessary.
S8.5 Billion on Hand.
To nail down the point that the
money doesn't have to be on hand
for Congress to appropriate it,
mote that spending authorizations
are outstanding to the tune of
I$157 billion, then note the Treas
lury's present cash balance. It's
1885 billion now, and that happens
to be higher than usual.
AS to an appropriation for a
specified year fiscal 1853. for
example-being the top amount
that can be spent in that year,
mote this: The Government ex-
poets to spend over $50 billion
dollars this year, although Con-
gress only authorized about $73
billion for that period.
Where does authority to spend
the other 81 billion come from?
The answer: From spending auth
orizations granted for previous
years, but not used up.
Some Will Be Left Over.
That's the clue also to how there
happens to be total of $157 bill
lion in spending authority avail
able now, when only $73 billion
was provided specifically for this
year. When this year ends, some
will again be left over for future
years.
If you had the idea that a spend
ing authorization for a specified
fiscal year must be used that year
or it will be ended automatically,
you were partly right. partly
wrong.
Certain types of authorizations
do expire if not used by years
end. A good example is an appro-
priation to pay salaries of en-
Iployes: that kind of appropriation
doesn't carry over.
But the really big-money appro-
priations for recent years have
been for buying military goods
ships, planes and so on-and these
carry over from one year to an
other until all the money is spent,
whenever that may be.
The reason why the Defense
Department has $50 billion in
carryover spending authority on
top of SAT billion newly provided
for fiscal 1853 will be clearer if
you consider this:
A one-year-only appropriation
was enough for building a Navy
vessel in the days of the small
sailing ship, but it wouldn't work
so we'll for the giant aircraft car
riers of today, which may take
five years or more to build.
Result of Machine Age.
The carryover appropriation is
largely a product of the advanc-
ing machine age and its increas-
ingly complicated gadgets.
Some appropriations are per-
manent-good year In and year
iout, and not restricted In amount.