Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-13
BUDGET
Continued From First Page

TAG utUppcu recommendation
he had pushed during the past
two years for Federal school
building aid in favor OF a new
science oriented," four-year
billion dollar program to i'm
prove education at the high
school and college level.
l Because Of the Federal pay
raises he Is now proposing, he
suggested postponement OF a
disqualification and medical in
surance program for Govern
ment employees that he had
urged last year.
And he urged increases In
aviation gasoline taxes and
postal rates--with a scent
stamp for intercity mail--as
part OF a general move to try
TO make sure that those who
benefit from special Govern
ment services pay the costs.
In forecasting q $500 million
surplus for the 1859 fiscal year.
the President is counting on
getting s700 million more reve-
nue. from higher postal rates
as well rs on a business upturn
before next summer 10 boost
tax receipts.
There are strong grounds to
support my confidence that the
expansion Of our economy will
soon be resumed. bringing
higher levels Of receipts with
present tax rates." he told
Congress.
Budget Director Percival
Brundage personally supported
this view at a news conference.
We anticipate a substantial
(business) recovery before
summer" he said.
Mr.. Brundage, who recently
denied a published report that
he was quitting soon after fall
ing to hold down the budget TO
a lower level. also told Ques-
TONERS he doesn't think the
new budget calls for too much
spending.
Il am sorry We have to spend
so much money" he said. But
! think that under current con-
ditions We should"
Debt Revision Asked
The increased spending esti-
mates caused the President %
ask that the present national
debt limit OF $275 billion be
revised upward temporarily
through the fiscal year 1859. =
He said the present limit Il
too restrictive in view OF ris-
Ing defense expenditures and
Of the need for more fiexibility
to permit efficient and Geo.
nomical debt MANAGEMENT"
On missiles. missile ships and
missile related construction
alone. he proposed spending 81
billion more in fiscal 1853
total OF SIS billion.
Under the heading Of pro-
lection" he Jumped 81 per
cent Of all the proposed fiscal
1859 spending. The total OF
S47.l billion. up $685. million
includes military expenditures
linked 5000 million to $39.s bill.
lion: the atomic energy pro-
gram. up $3.50 million to Sass
billion: stockpilinR strategic
goods. down $l43 million tc
1922 million: mutual security
up $ll9 million to $40 billion
and other international activi.
ties. sSS4 million.
Research Funds Provided
Another breakdown showed
more than So billion In the new
budget ear-marked for research
and development. and procure
ment Of weapons for testine
and evaluation.
Included in this amount were
funds for IAN expanded re-
search and development effor,
on military satellites and other
outer space vehicles" uy the
Advanced Research Projects
Agency under the Secretary OF
Defense. Its expenses. including
work on anti-Inissile systems
were estimated at about 500
million.
As distinct from expenditures
that affect the budget balance
directly. the Presidents re-
quests for appropriations and
other new educational author
ity amounted to S72.5 billion
for the 1859 fiscal year This is
SAT billion more than enacted
so far for fiscal 1853 and S2.s
billion more than for 1897.
Much Of the 1859 fiscal year
spending will come out of a
1892 billion carry-over from
prior years obligational au-
thority. The President esti-
mated that $39.9 billion in APP
preparations will be carried
forward into the 1860 fiscal
year.
Aid 10 Small Firms
Among legislative recon-
mendations In his budget
message, the President urged
that the Small Business Ad-
ministration. due to expire next
July 81, be given unlimited life
with new obligational author
ity OF $50 million to make
loans. With proceeds from re-
payments on earlier loans, this
would give the agency a total of
$l6i million for new loans and
other aids to small business
during the new fiscal year.
The President said his
economic report, going to Con-
gress next Monday, would in
clude proposals for certain
technical tax revisions that
would give substantial benefits
TO small business. with a
minimum loss Of revenue and
no changes In tax rates.
~ PER SQUARE FOOT
lower Conn. Ave.