Evening star., 1953-08-16
Balancing Of Budget
Now Possible by IS,
Senator Bridges Says
ByJ. A. o'Leory

Chairman Bridges of the Sem
ate Appropriations Committee
predicted last night a balanced
budget will be within the realm
of accomplishment" in 1855 and
1856 if there is no national crisis
in the meantime.
The New Hampshire Republi-
can issued a report praising Con-
gress for having cut new appro-
priations $14 billion below the
original Truman estimates and
$4.6 billion under the revised
Eisenhower budget.
He explained that a balanced
budget in 1854 is not likely. in
spite Of these sweeping reduc-
tions. because much of the
spending in the twelve months
ending next June will be from
the unexpended balances of past
appropriations.
The new money appropriated
at the recent session added up
to S54.5 billion. To this must be
added interest on the public debt,
tax refunds and other fixed
charges amounting to $l0.6 bill
lion. for a total of $65.1 billion.
May Spend S72 Billion.
Because of the unspent bal
ances from prior years, however,
Senator Bridges estimated that
the Government actually may
spend $72 billion in the current
twelve months.
The Treasury estimated in
May that spending in fiscal year
1854 would reach STA billion. but
cuts which Congress made in
appropriations in June and July
prompted Senator Bridges to
scale the spending figure down
by So billion.
Even If that estimate proves
correct. however. the Govern
ment probably would be about
SIS billion in the red next June,
because revenue collections for
the current fiscal year have been
figured at $67.5 billion. Some
congressional experts believe that
is an optimistic forecast on Gov
ernment income.
The deficit for the current
year may be further reduced as
a result Of the order President
Eisenhower recently issued to all
Government agencies to take
every possible step" to cut spend
ing Immediately.
AS result of this campaign,
the Budget Bureau is expected
to make a new estimate late this
month Of spending in the cur
rent year. This new drive to
have Government bureaus spend
less than they have available is
part of the administrations ef-
fort to stay within the $275 bill
lion debt ceiling, and thereby
avoid special session Of Con-
gress before January.
Senator Bridges said the re-
ductions Congress made from the
original budget submitted by
former President Truman in
January are most graphically
presented in percentage form.
He said the overall reduction was
about 90 per cent. He listed the
most substantial cuts as follows:
Foreign aid, 40 per cent; State
Department. 80 per cent: rivers,
harbors and flood control, So:
Commerce and Interior Depart
mentS, % each; defense, IS per
cent.
In explaining why these cuts
cannot be reflected in a balanced
budget this year, Senator
Bridges said that when the cur
rent year began on July / the
Government still had unexpended
balances from past years of $8l
billion. When the new appropria-
tions were added, the total avail
able became $145 billion.
The Senator pointed out that
much of this money is for
planes, tanks and ships which
take several years to build and
must be paid for as delivered.
He said the cuts made in new
appropriations at the last session
will be reflected in smaller unex-
pended balances in 1855 and
1856.