Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-17
Federal Costs Soar

President Eisenhower has submitted
to Congress 1858 budget based upon
hopeful estimates of continuing prosper
1ty. In predicting third consecutive
surplus, the President calculates receipts
at $73.6 billion and expenditures at $71.8
billion-leaving favorable margin Of
$1.S billion. In virtually every respect, the
budget is ecord-breaking one-includ-
ing new all-time high in expected rev.
enues and new peacetime high in pro-
jected expenditures. 1t reflects the impact
OF world tensions in calling for a new
spending peak of $45.3 billion-63 per cent
OF the budget total-for national security
and related programs. 1t reflects, too,
the increasing demands upon the Federal
Government for civilian benefits for a
nation of 172 million people. And despite
further modest reduction in the public
( debt, 1t calls for a record breaking STA
billion-more than 10 per cent of total
expenditures-to cover interest costs. 1t
deferS, for at least one more year, any
hope Of general tax relief.
1t will be nearly 10 months before
final accounting can be made of this pro-
lection Of the Governments financial
position on June 80. 1883 Budget plan
ming that far ahead is hazardous BUSH
! ness. The President described the eSti-
mates as the best I'VE can make" and
expressly reminded the Congress that
significant changes may take place" be-
fore the next fiscal year ends. There are
signs today that the national economy,
in effect, is marking time, standing rea-
sonably steady on its high plateau Of the
past two years. But 1t is not yet clear
whether the near-future movement will
be up or down.
The estimates on spending assume,
OF course, that world conditions will not
/ become significantly worse For military
functiOns of the Defense Department., $50
Billion is budgeted-an increase of So
billion over this year. In his discussion
Of this item, the President stressed that
greater combat power" is being acquired
through constantly improved weapons for
all branches of the service. Guided mis-
Sile procurement was hiked by a half
billion dollars with further increase in
new obligational authority. Mutual Sc
curity remains at $26 billion for the
military program but is increased in the
economic category to make total Of $44
billion. The new Middle East economic
aid program would receive 5000 million
Of this total
It was significant, perhaps, that
Secretary Of Treasury Humphrey made
special appeal mot simply to keep
within the limits of this budget, but to
make actual and substantial reductions"
through improved governmental EN-
cheney. Both the President and Mr.. Hum
phrey expressed their concern about
current inflationary pressures and urged
that no large spending programs beyond
those budgeted be added by Congress.
Whether Congress may find ways to
reduce the spending figure is uncertain.
A budget as large as $718 billion provides
room for searching examination, but
Congress has been reluctant on the whole
to cut back materially on the largest
single item-defense funds The same
may not be true of foreign economic aid.
! Before the last Of the appropriation
bills is enacted there will be time for
Z later reading on the state of the domestic
economy and on developments abroad.
I Both Congress and the administration
! have responsibility to measure these
! carefully in reaching their final agree
. Inent on appropriation needs.