Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-13
Budget Of $72 Billion
Will Go to Congress
So Billion Rise
In Spending
Is Expected
By the Associated Press

A balanced budget calling for
record peace-time spending of
around $72 billion is expected to
be sent to Congress Wednesday
by President Eisenhower.
Offsetting this SO billion in
crease over the current rate Of
Government spending-much of
it for military purposes-the
President is expected to forecast
a rise in revenues to about $73
billion for the fiscal year start
ing July /.
This anticipated surplus is not
enough to hold much hope for
any cut in individual income
taxes this session Of Congress.
The administration has made
known that it opposes any tax
reductions while inflationary
pressures are on and unless there
is a prospective surplus of SO to
81 billion dollars.
Instead. it is expected that
Mr.. Eisenhower will recommend
that the surplus be applied to
the $272 billion national debt, on
which interest payments are now
running nearly $7.25 billion a
year.
If the budget for fiscal 1858
does provide the administration
with its third surplus in a row.
it would be the first time since
fiscal 1928-29-30 that the Gov
eminent has been able to wind
up three consecutive years in the
black.
Second Straight Surplus
The $707 million surplus
which the administration pres
emily expects to have when the
current 1857 fiscal year ends on
June 80 would be the second
straight for Mr.. Eisenhower. The
last two consecutive surplus
years were in the Truman ad-
ministrations of 1947-48.
Government spending has
been climbing steadily the past
two years and is expected to
reach a record peace time high Of
$69.1 billion or more in this fiscal
year. This was the figure given
IN a revised forecast last August
and it undoubtedly will be in
creased in Mr.. Eisenhower's new
predictions next week.
Thus a hike of around SO bill
lion. which some informed
sources predict in the new
budget, would place spending at
the fifth highest level in his
tory. exceeded only by three
years of World War II and
President Humans STA billion
Korean War year budget of 1858.
The budget figures are secret
until the President sends them
to Congress.
But it is known that the great
est pressure for more money
comes from the military.
Defense Secretary Wilson in
Dictated last october that mill
tary costs might go up one and
a half to two billion above the
1865 billion estimated for this
fiscal year. Since then. the Suez
Canal crisis and heightened
Middle East tensions have led
some officials to say that 81 bill
lion will be the minimum in
crease needed.
Some informed officials believe
spending now and in the future
will go higher because of rising
prices for military goods and
equipment, shipbuilding and
run-of -the-mine items the Gov
eminent must buy.
Agriculture Need Rises
Another STABLE increase in re-
quests for funds likely will come
from the Agriculture Depart
ment. officials say $500 million
or more will be needed to carry
on the soil bank program. Con-
gress provided $400 million this
fiscal year and the program. al
ready has cost about $500 mil
lion.
Best information is that Mr..
Eisenhower will ask at least
500 million more for foreign aid
in the new fiscal year. Cur
rent spending to help friendly
countries was estimated at
nearly $4.25 billion this year.
There have been hints the
amount might go much higher
lin the new budget. Vice Presi-
dent Nixon recently said this
country will do everything pos
sible to help Western Europe
over the financial crisis resulting
from the SueZ situation,