Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-16
$3.50 Billion Budget
Is Sent to Congress
1857 Figures
Narrowly
Balanced
By GARNETT D. HoRNER


A precariously balanced budget.
estimating that Federal expendi.
lures win go UP to $3.50 billion
but be more than matched by
rising receipts of 1868 billion
during the 1857 fiscal year start
ing next July /. was submitted
to Congress by President Eisen-
hover today.
His annual budget message
revised upward his estimates Of
both spending and revenues for
the current fiscal year to predict
"a surplus Of $3.50 million next
June 80 instead of $2.4 billion
deficit he forecast a year ago.
II the Presidents estimates
are borne out. the public debt
win be cut by 500 million this
year and another $500 million
next year from the $274.4 biz
lion at which it stood last
June 30.
Tax Cuts Not Planned
Mr.. Eisenhower again empha-
sized that some reductions in the
national debt should be achieved
before taxes are cut any more.
He held out no specific hope
for new tax cuts. He said only
that taxes should be reduced
when we prudently can"
The Presidents balanced
budget for 1857 foresees a sur
plus of only $435 million in re-
|ceiptS over expenditures. He con-
coded that this was a slim"
margin, calling for the utmost
CO. operation" between Congress
and the executive branch to head
on expense increases or revenue
decreases that would create q
deficit.
He is counting on continuing
prosperity putting more and
more money in the peoples
pockets on which they pay taxes
to bring in the 1868 billion Fed
Eeral revenue estimated for 1857.
an increase Of $l.S billion over
estimates for the current year
land of nearly Sc billion over the
10 months ending last June 30.
His hopes Of avoiding a deficit
also depend on Congress extend
Ing excise and corporation in.
come taxes at their present rates
Instead of letting. scheduled re-
auctions go into effect April /.
Otherwise, the estimated reve-
lnues would be cut by $2.1 bill
lion.
Postal Boost Contemplated
The budget also contemplates
Congress approving increases in
postal rates to produce $3.50
million additional revenue. II
Congress fails to pass this legis-
llation. to which it turned a cold
shoulder last year, the estimated
surplus would nearly vanish.
For the first time since he has
been in Office. Mr.. Eisenhower
proposed increased expenditures.
His $3.50 billion estimate for
spending in the 1857 fiscal year
lis sis billion over his revised
estimate for the current year
land SIS billion more than he
forecast last January for this
year.
A year ago, he estimated ex-
ipenditures of 1924 billion and
Ireceints of $50 billion for the l2-
month period ending next June
80. The revised estimates call for
expenditures Of $64.3 billion and
receipts of $64.5 billion.
Rising national defense costs
account for much Of the in
creased spending in both periods.
Defense needs are still override
ing" the President told Congress.
But ne SAID MS puget also re-
fleets some new and expanded
programs for enhancing oppor-
tunities for human well-being
and economic growth"
More for Atomic Program
He proposed an increase Of
more than 5000 million in De-
tense Department military spend
ing for the new fiscal year-$35.5
billion as compared to $34.6 bill
lion now estimated for this year.
Other increases include $228
million in various welfare activ-
Continued ON Page A-10, Col. I