Evening star., 1953-01-10
Mr.. Trumon's Final BUDGET

PRESIDENT TrumanS 1884 Du0get, estimating
expenditures at $78.6 billion and deficit OF
500 billion, offers the new Republican Congress
an inviting but not simple target.
Under the unique circumstances that his
administration will have no responsibility after
January 20 for defending or justifying the fig
ures involved, the President has recommended
that the Congress authorize $729 billion in new
obligations, a reduction from the estimated
$80.8 billion to be authorized in the present
fiscal year. At the same time, he has estimated
1854 expenditures at $78.6 billion, an increase
Of four billions above the latest spending esti-
mates of the present year. With revenues for
each year estimated at the same level-$68.7
billion-the projected expenditures in fiscal 1854
would leave deficit of 500 billion. The deficit
for 1858 is estimated at $50 billion as against
an actual 1852 deficit of 81 billion.
The dilemma facing the Republican admin
istration arises out of the expressed intent to
reduce Government spending, to reduce taxes
and to achieve balanced budget The figures
presented by Mr.. Truman reflect the difficulty,
If not the impossibility, of accomplishing all OF
these objectives quickly. Indeed, Budget Direc-
tor-designate Dodge, who has followed closely
the shaping of the Truman budget, already has
warned that "60-day miracles" should not be
expected
There is good reason to believe, in the first
place, that MIR. Truman'S revenue estimates are
substantially correct. Returns thus far in fiscal
1858 offer sufficient measure to assure that total
revenues this year will be close to the $687
billion figure. Even allowing for expiration of
the corporate excess profits tax next June 30
and reduction of individual income tax rates
six months later-both of which are provided
in existing law-the upward trend in national
income is expected to keep the 1854 returns
at approximately the 1858 level. That being so,
the first task of the Congress will be to review
the estimated expenditures in search of $99
billion in possible reductions-if the 1854
budget is to be balanced
About 73 per cent of the new budget is
allotted to six major national security programs
the military services international security
and foreign relations, development of atomic
energy, promotion of defense production and
economic Stabilization, civil defense and mer-
chant marine activities. The total dollar cost
OF these is estimated at $57.3 billion, with the
military services-including personnel, opera
ton, procurement, construction, research and
industrial Notwithstanding for $463
billion of this Mr.. Truman reminded Congress
in his message that military expenditures have
been geared to reach their peak, "if no new
aggressions occur" in fiscal 1854 The second
major security cost is that in the international
field where $76 billion is budgeted for the
mutual security program because of the ur-
gent need to help our allies" Although these
categories offer the greatest opportunity for
savings, they likewise warrant the most careful
scrutiny lest the national safety be endangered.
While the pruning of s99 billion, or. more
than II per cent, from the $786 billion figure
may be accomplished, any tax reductions be-
yond those already provided obviously would
create an additional obstacle to bringing the
budget into balance. On this question, Mr..
Truman made some sound comment when he
said, lin my judgment it would not be wise to
plan for large budget deficit during period
when business activity, civilian employment
and national income are reaching unprece-
dented heights. The course of prudence and
wisdom would be to continue to strive for
balanced budget and pay-as-we-go policy in
our rearmament program"