Evening star. [volume] (Washington, D.C.) 1854-1972, 1953-03-01
BY Robert K. Walsh

1AColOC11I G10cIlIlOWGE DuQReC
balancing troubles may be great
ly eased by bigger than-expected
revenues and slower than-sched-
uled spending.
Authorities deep in the Presi-
dents predicament agree with
his comment last week that max
ing both ends meet in the Federal
budget will be 'terrif1cally difficult.
This does not mean it is hope
less. they emphasize.
President Eisenhower inherited
a proposed budget in which for
mer President Truman estimated
$78.6 billion in governmental ex-
penditures and $68.7 billion in
revenues during the fiscal year
beginning July /. The problem is
to avoid the 500 billion estimated
deficit.
Income Underestimate.
One Of the first probabilities
repeatedly far more likely than
it seemed last fall is that Mr..
Truman underestimate Federal
| income by as much as So billion.
In recent months the rate of in
come has been greater than an
ticipated. Added receipts be-
tween now and June 80 would
apply to the current fiscal year
but the trend conceivably would
continue during the next fiscal
period.
It was noted, too, that on sew
eral occasions in past years Mr..
Truman undereStimated rev.
enues and overestimated expend-
itures. Another trend since the
end of 1852 indicates that the
rate of Government spending is
being reduced. From last July
to January l it was at the
rate of $73 billion. Last month
1t was at the rate of less than
| UOO DA14lOl1s
In any event, even assuming
that revenues for the coming
fiscal year turn out to be $70.T
instead of the $68.7 billion ex-
pected IN the budget submitted
by Mr.. Truman last month
President Eisenhower's budget
makers cannot rely solely on a
gradual drop in expenses to save
the other $40 billion and thus
avoid a deficit.
Almost rs per cent of the $78.6
billion in expenditures recon-
mended in the Truman budget
for the fiscal year beginning
July l involve the Defense De-
partment and foreign aid. An
other IA per cent is for deot
charges and for veterans pro-
grams. The rest, about $1O.a
billion, is for general operating
expenses of departments and
agencies.
President Eisenhower has been
receiving plenty of. suggestions
on how to cut billions from the
budget. One such move, favored
in congressional quarters, would
trim foreign assistance OUTLAWS
by as much as SIS billion. The
President has indicated scant
sympathy for such a slash in
view of world conditions.
Military spending has become
an increasingly big target. Here
again there is powerful opposi-
ton as well as acute uncertainty
as to military needs in a difficult
and indeterminate future.
Yet. there is still another prob
ability which fiscal officials cite
in their hope of balancing the
budget. That involves billions
of dollars in unexpended bal
anceS from prior years appro-
priations.
Congress has long had a habit
Of authorizing and appropriate
ing money faster than govern
mental agencies can spend it.
The SD Congress, for example,
set peacetime record by APP
proprlating a total of $178.7 bill
| lion in two wears
Senator Byrd, Democrat, of
Virginia and Representative
Reed, Republican, of New York
reported recently that unex-
pended balances from specific
annual appropriations and other
authorizations totaled about Silt
billion last January /.
Transfer of Funds.
Eisenhower Administration Of
ficials believe substantial sums
can be saved, and a very close
approach made to a budget bal
ance, by not spending some of
that money or spending it at a
much slower clip if it has been
obligated for expenditure.
Besides this "stretch-out STRAIT
egg, G. o. P. Administration and
fiscal officials also see the pos
sibility of considerable cuts in
spending during the coming year
by transferring appropriated but
unspent funds within depart
ments.
Through such transfers, many