Evening star., 1962-01-18

1868 spending over fiscal 1862
are in national defense, up al
most SIS billion to $52.7 billion,
and in the space program, al
most doubling from $1.3 billion
to $2.4 billion.
A sharp increase is projected
in housing and community
development, from $545 million
to 1882 million. Foreign aid
spending would go up 5000 mil
lion to $3.9 billion; resource
development, $181 million to
$2.3 billion; education programs,
1927 million to almost SIS bill
lion; and other welfare, health
and labor benefits, 1897 million
to $5.1 billion. Interest costs are
expected to rise $400 million to
$9.4 billion, rejecting higher
interest rates and a larger debt
during much of the year.
The major cuts are in the
farm programs, down $507 mil
lion to $5.8 billion; in veterans
pensions and benefits, down
$274 million to $5.3 billion al
though higher benefits to serv-
ice-disabled veterans were
asked, and In the Post Office
Department, where the postal
rate increase is expected to cut
losses $595 million.
Expects Missile Gain
Mr.. Kennedy touched briefly
on a variety of his legislative
proposals and program objec-
tives in his message. He said
his military budget would SUBJ
Smntially strengthen Ameri-
can strategic and conventional
war forces. providing additional
Mlnuteman missiles and Polaris
submarines as well as two new
Army divisions.
He said the survey on avail
able civilian fallout shelter
space was "ahead of schedule
and asked almost $700 million
for civil defense activities in
the next wear,
In foreign aid, the President
noted a shift in emphasis from
military to economic assistance
and said he would ask Congress
for a long-term authorization
OF So billion to aid the Alliance
Tor Progress in Latin America
for the next four years.
Help Sought For REA
Turning to domestic pro-
grams, he called for an expan-
sion OF the food stamp plan
and a substantial increase in
Rural Identification Admins
tratlon loan funds through al
lowing REA to keep loan re-
payments instead of returning
them to the Treasury.
The budget, Mr.. Kennedy said
would allow new starts on 43
water resource projects, as well
as substantially increased ex-
penditures" on the new pro-
gram to aid areas of chronic
unemployment and for i'm
provement of civil aviation.
Funds will be available he
said. TO accelerate progress
on housing and urban renewal
and to launch a program of
Federal aid for urban mass
transit.
He also proposed increased
spending for health research
and protection and more funds
for medical education, en-
ployment services and welfare
programs. He renewed his plea
for a broad expansion of Fed
eral aid to primary, secondary
and college education, while
reviving the suggestion for a
cutback in the "impacted area
school aid program-a reduc-
tlon that Congress rejected last
year.
Pay Reform Planned
The President said he would
submit proposals for a reform
Iof Government pay scales,
aimed at bringing career en-
ploye salaries at all except the
very top levels into reasonable
compatibility with private en-
terprise salaries"
MIR. Kennedy asked fol-
prompt action on his bid to
raise the national debt limit
temporarily from $298 billion
to 1903 billion, but said no in
come tax hikes were necessary
to finance his expanded spend
ing program.
He Endorsed the package of
tax reform bills-the key one
being an 8 per cent tax credit
on new investment in depreci-
able equipment-now awaiting
congressional action and gave
his approval to a cutback in
transportation excises.
The details Of the budget
programs on taxes, defense
space, science, medicine. the
District and civil service are
reported elsewhere in The Star
Summaries of other programs
follow:
HOUSING AND URBAN
Urban renewal capital grants
are scheduled to increase from
$211 million to 1925 million
with 500 new projects author
lied for planning and 280 for ex-
ecution in 1923. The amount
spent on public facility loans
will go up from $23 million tc
$39 million.
] Under existing and new legis.