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THE FEDERAL BUDGET
KALAMAZ&O

FEB 8 1950 IN BRIEF

PUBLIC LIBRARY

FISCAL YEAR 195

EXECUTIVE OFFICE OF THE PRESIDENT

BUREAU OF THE BUDGET

The Budget for the fiscal year 1951 reflects the great
strength and the extensive responsibilities of this country.
It represents much more than a collection of facts and
figures—it represents the program which I am recommending for our Government in the months ahead. It
will influence the course of events for years beyond 1951,
and the success with which we push ahead toward enduring peace, continuing economic growth, and a steady
strengthening of our democratic society.
HARRY

The Budget Message
January 3, 1950

S. TRUMAN.

THE FEDERAL BUDGET

I N BRIEF
FISCAL YEAR 1951
(July 1,1950-June 30,1951)

JANUARY 1950

Executive Office of the President
Bureau of the Budget

INTRODUCTION
The Budget of the United States which the President sends to Congress
each January is a statement of the financial program he recommends for
the Federal Government.
It is the largest and most detailed of three messages on national policies
and programs which the President sends Congress when it convenes at the
beginning of the year. The others are the State of the Union Message and
the Economic Report.
In the Budget, the President estimates how much money will be received
by the Government during the coming year and how much money will be
needed to perform the many activities and services which the Congress has
authorized. He also sets forth the estimated receipts or expenditures
resulting from the enactment of any new legislation he is proposing.
The Government's business is run on the basis of a "fiscal" year rather
than a calendar year. The Budget transmitted to Congress in January
1950, therefore, contained the President's recommendations for the fiscal
year 1951, beginning July 1, 1950, and ending June 30, 1951.
It is important that every citizen understand the principal facts concerning his Government's Budget. The Budget itself, the reports of the Congressional Appropriations Committees and the debates in Congress, and
the President's statement at midyear reviewing the Budget after the
Congress has completed its action, are the chief official sources of such
information.
The Budget is designed primarily as the basis for action by the Congress.
It is therefore detailed, complex, and expressed in technical language.
This booklet, "The Federal Budget in Brief," is intended to meet the
frequently expressed need of many individuals and groups for a brief
summary in nontechnical terms of the basic facts on where the Government's money comes from and where it is speht.

CONTENTS
INTRODUCTION

BUDGET SUMMARY

BUDGET RECEIPTS—SUMMARY

BUDGET EXPENDITURES—SUMMARY

BUDGET EXPENDITURES BY

FUNCTION:

International Affairs and Finance
National Defense
Veterans Services and Benefits
Social Welfare, Health, and Security
Housing and Community Development
Education and General Research
Agriculture and Agricultural Resources
Natural Resources
Transportation and Communication
Finance, Commerce, and Industry
Labor
General Government
Interest on the Public Debt

10
12
14
16
18
20
22
24
26
28
30
32
34

APPENDIXES:

A. Receipts From and Payments to the Public
B. Federal Civilian Pay Rolls
Federal Civilian Employment
C. Budget Expenditures per Capita
Budget Expenditures as a Percentage of National Income. .
D. How Government Activities Are Financed
E. Improvement in Management
F. Budget Receipts and Expenditures—Fiscal Years 1915-1951.
Budget Expenditures by Function—Fiscal Years 1939,
1943-1951

36
38
38
40
40
42
43
44
44

BUDGET SUMMARY
The amount of money received
and spent by the Federal Government is large—in recent years about
40 billion dollars each year compared to less than 9 billion dollars
in the immediate prewar years.
The costs of war and the present
uncertain international situation are
the two major reasons for this
increase.
Expenditures for national defense,
international affairs, veterans' services and benefits, and interest on
the public debt—the four largest
items in the Budget—are estimated
to be 30 billion dollars in fiscal year
1951, as compared with 2.6 billion
dollars in 1939.
In the fiscal year 1951, Budget
Expenditures are estimated at 42.4
billion dollars, and Budget receipts,
under present tax laws, at 37.3 billion dollars.
The estimated deficit of 5.1 billion
dollars in 1951, like the 1950 deficit,
results partly from the reduction in
tax rates in 1948, and partly from
increases in certain major programs,
notably national defense, and, to a
lesser extent, farm price supports and
the purchase of home mortgages.
Expenditures in 1951 are estimated
to be nearly one billion dollars less
4

than those in 1950. Furthermore,
the President stated that the policies
followed in preparing the 1951
Budget will permit further reductions in expenditures in later years,
chiefly in the international and
veterans' programs.
In addition, the President pointed
out that Federal revenues will increase as the economy and national
income grow. Moreover, he is recommending some changes in the tax
laws which will bring in a moderate
amount of net additional revenue in
1951 and a larger amount in later
years.
Thus the President concluded that
his recommendations provide a sound
basis for moving toward a balanced
Budget as rapidly as is possible in
view of current international conditions and our economic situation.
NOTE.—Several important Federal programs are operated
through trust funds, with the Government acting as a
trustee. The receipts of these funds consist primarily of
special taxes, such as the payroll taxes for old-age and
unemployment insurance, or of premiums paid in, as in the
case of the veterans* life insurance.
Neither the receipts of these funds nor the benefits and
dividends paid from them are included in regular Budget
receipts and expenditures. For example, during 1950 and
1951, nearly 3 billion dollars in dividends will be paid to
veterans from the veterans' insurance trust fund, and this
amount will net be included in Budget expenditures.
In 1951 it is estimated that total trust fund receipts will
exceed trust fund expenditures by over 2 billion dollars.
For a financial summary which includes trust fund trans'
actions see page 36.

BUDGET RECEIPTS AND EXPENDITURES

SURPLUS OR DEFICIT
Billions of D o l l a r s

F I S C A L

Y E A R S

3.9

Deficit

1939
RECEIPTS

EXPENDITURES

1948
RECEIPTS

EXPENDITURES

1.8

Deficit

RECEIPTS

EXPENDITURES

1950

5 . 5 Deficit

Estimated

RECEIPTS

EXPENDITURES

5.1 Deficit
1951
Estimated

RECEIPTS

EXPENDITURES

BUDGET RECEIPTS
SUMMARY
Direct taxes on the income of individuals and on the profits of corporations will provide over 70 percent
of estimated Budget receipts in the
fiscal year 1951, compared with 52
percent in 1939.
While both individual and corporate tax rates have been substantially reduced from the levels reached
during the war, they are still considerably higher than the prewar rates.
Total Budget receipts have declined from 42.2 billion dollars in
1948 to an estimated 37.3 billion
dollars in 1951. The main reason
for this decline is the reduction in
tax rates, enacted in 1948. In addition, sales of surplus war property
have virtually ended. Furthermore,
taxes on corporate profits are not
collected until a year after the profits
are earned, and the decline in cor6

porate profits during the calendar
year 1949 will be reflected in tax
receipts as late as thefiscalyear 1951.
As the economy grows and employment, production, and national income increase, revenue will increase
also.
The President has stated that he
will shortly recommend changes in
the tax laws to reduce present inequities, stimulate business activity,
and yield a moderate amount of<net
additional revenue.
Because of the time lag in collecting taxes after rates are changed, and
because certain of his proposals will
result in some immediate loss in revenue, the effect of the President's
recommended changes will be to
increase Budget receipts in 1951 only
moderately. The increase will be
larger in later years.

BUDGET RECEIPTS

SUMMARY

A m o u n t of M o n e y

Billions o f D o l l a r s
TOTAL

Note:

37.3

Customs a n d O t h e r Receipts

A f t e r d e d u c t i o n of refunds.

2 ,3
^Excise Ss

(Taxes!

TOTAL

• D i r e c t Taxes?

5.1

'•• o n
Excise

T a x e s

Direct Taxes

^ L 7 ^ 7 .
v

^Corporations:

Customs O t h e r R e c e i j

". 10.1

"^SBj^SL

o n Corporations% : :> : : : ::. : ^

Taxes on Individuals

1951

1939

Estimated
F I S C A L

Where

Y E A R S

the Money

Will

Come

From

Excise Taxes—Retailers and Miscellaneous

Excise Taxes—Manufacturers

1.3

Excise Taxes—Tobacco

2.3

•

Customs and
an Other Receipts

BUDGET EXPENDITURES
SUMMARY
In fiscal year 1951, the cost of past
wars and of preserving national security will account for 71 percent of
all Federal expenditures.
The direct Budget costs of World
War II amounted to nearly 350 billion dollars, about 60 percent of it
financed by borrowing. Interest on
the debt, therefore, has become a
heavy fixed charge in the Budget
each year. In 1951 it will amount to
5.6 billion dollars.
Services and benefits for 19,000,000
veterans, including medical care,
pensions, and readjustment benefits
under the "GI bill," will require expenditures of 6.1 billion dollars in
1951.
Programs devoted to national security—international affairs and national defense—will amount to 18.2
billion dollars, or about 45 percent
of the Budget.
All other programs will require
12.5 billion dollars—29 percent of the
Budget. These programs include the
development and conservation of
natural resources; promotion of
health, housing, education, and economic security; assistance to transportation and the flow of trade and
8

commerce; and many other governmental services.
Included in this 12.5 billion dollars
are 3.3 billion dollars of Federal
grants and loans to States and local
governments, 1.6 billion dollars for
loans to industry and cooperatives
and the purchase of housing mortgages, and 2.0 billion dollars for
Federal construction of public works.
These figures show the marked
change which has taken place in the
character of Federal expenditures
since prewar years. In 1939, costs of
national
defense,
international
affairs, veterans' services, and interest
on the debt amounted to only 29
percent of the Budget; all other
activities cost 71 percent of the total.
In 1951, that situation is exactiy
reversed. The four large items are
costing 71 percent; all other activities of Government only 29 percent.
The following pages discuss Government programs, classified according to the broad purposes or functions
they are designed to serve. The
estimated expenditures for these programs in 1951 include the estimated
cost of new legislation which the
President proposed in his Budget.

BUDGET EXPENDITURES
Amount

SOCIAL

WELFARE,

HEALTH,

AND

Money

SECURITY
Billions o f D o l l a r s

TOTAL

4 2 . 4

National
Defense
•

TOTAL

9.0

[International!

| i 2 . 5 |
•

N a t i o n a l Defense

^ I n t e r n a t i o n a l
a

13.5

| A L L |
OTHER^

Veterans
WiP

Interest

less than 0 . 0 5

Interest

0.6
I

0.9

5 . 6 $

Veterans:

••:' 6.1

T939
FISCAL Y E A R S

ilillifiliS*
Where

the Money

Will

Go
2

National Defense

""""l6.l
Veterans

>71.%

n
lnnnnnnnnnnn
innnM
i MMn
in™^ ^

Interest on Public Debt

B B 1 I F ™ "

Q
•

4 7

International
[2.7

Social Welfare, Health and Security

I2"2

Natural Resources

J2.2
Agriculture
1.8
Housing, Education
1.7

Transportation and Communication

General Government
.5

L a b o r , Finance, Commerce, and Industry

> 867308 0 - 50 - 2

I ,

I ,
9

INTERNATIONAL AFFAIRS AND FINANCE
International programs support
United States foreign policy by
helping create the economic and
political conditions necessary for
world peace and our own national
security.
In the fiscal year 1951, costs of
international affairs and finance will
amount to 4.7 billion dollars, or 11
percent of the Budget.
Since the war, the United States
has actively supported the United
Nations and worked with other free
countries to bring about recovery
from war's destruction and economic
dislocation and to expand world
production, trade, and living standards.
Expenditures for international programs in 1951 will be 1.3 billion
dollars below 1950. This substantial
drop reflects the progress already
made in achieving recovery. In
his Budget, however, the President
warned that the job is not yet done
and that the success of the programs
to date underscores the need of carrying them through on the planned
basis.
Recovery and relief programs—
principally the European recovery
program—account for nearly fourfifths of all international expenditures. In addition to aiding the
10

free nations of Europe, these expenditures include recovery costs in the
occupied areas of Germany and
Japan.
To supplement both our international recovery programs and our
own defense, the United States is
providing military assistance to nations which have joined us in the
Atlantic Pact for mutual defense
and to certain other nations.
The State Department, in conducting our foreign affairs, maintains diplomatic relations throughout the world, is responsible for
the government of the United States'
part of occupied Germany, and
conducts the United States Information Service abroad and the "Voice
of America."
Expenditures for the payment of
Philippine war damage and war
claims are now nearing completion.
Now that recovery is well under
way, the President has recommended
a long-range program of foreign
economic development, known as
the Point IV program. Its purpose is to bring the benefits of modern
scientific and technical knowledge
to millions of people in underdeveloped areas, and thereby contribute to the development of free
institutions and world peace.

BUDGET EXPENDITURES
Amount

AGRC
IULTURE

AND

AGRICULTURAL

R E S O U R C E S

of Money

Billions o f D o l l a r s

£B-ss
F I S C A L

Where

1950

1951

Estimated

Y E A R S

the Money

Will

International Recovery and Relief

Foreign M i l i t a r y Assistance

Conduct of Foreign Affairs

Assistance to the Philippines

Foreign Economic Development

NATIONAL DEFENSE
Nearly a third of all Budget expenditures—or 32 cents out of each dollar—will be required in fiscal year
1951 to meet the costs of the defense
program. Defense is thus, by far,
the largest single item in the Budget.
Since the war, the goal of our defense effort has been to provide a
balanced military program which
meets our security needs in an uncertain world and which can be
sustained over a period of years without undue use of our national resources.
Early in 1948, the Nation took
steps to adjust its defense strength
upward to meet changed international conditions. For this reason
costs of national defense have increased from 11 billion dollars in
1948 to 13.5 billion dollars in 1951.
In his Budget Message the President indicated that the projected
1951 level is substantially lower than
previously anticipated, as a result of
progress toward unification and the
actions recently taken to improve
efficiency and reduce costs. He further indicated that he did not expect
much, if any, increase in the next
few years.
The United States now maintains
active defense forces of about 1,500,000 men and women and pays the
costs of part-time training for nearly
12

1,000,000 members of reserve forces,
including the National Guard.
It employs 725,000 mechanics,
laborers, nurses, and other civilian
workers—nearly 40 percent of all
Federal civilian employees—to operate and maintain military equipment
and facilities such as navy yards,
ordnance plants, hospitals, and airfields.
In 1951, costs of personnel, training, and other maintenance and
operating expenses will amount to
over 9 billion dollars, or two-thirds of
total defense expenditures. In addition, large sums are spent for the procurement of new planes, guns, ships,
ammunition; for other major equipment and facilities; and for the stockpiling of strategic materials. These
purposes will require nearly 4 billion
dollars. Research and development
work, to provide better equipment
and keep abreast of modern technology, will require nearly 700 million dollars.
Of the 13.5 billion dollar total,
4.1 billion dollars will be spent for the
Army, 4.1 billion dollars for the
Navy, 4.4 billion dollars for the Air
Force, and 900 million dollars for
various activities supporting defense,
primarily the strategic stock pile,
which will cost 650 million dollars.

AGRICULTURE AND AGRICULTURAL

BUDGET EXPENDITURES

Billions o f D o l l a r s

A m o u n t of M o n e y

13.1

11-0

13.5

1.9

I llllllllllli _ J

BBBu
i IP"'"" mi LJH58
limum ii ii iiiiniB

1948

1939

FISCAL

1949

1950

1951

Estimated

YEARS

Where the Money

Will

Stockpiling—Strategic and Critical Materials

M i l i t a r y Public Works, Pay of Retired Personnel, Industrial M o b i l i z a t i o n , and Other

VETERANS' SERVICES AND BENEFITS
Estimated Budget expenditures of
6.1 billion dollars for veterans'
programs in the fiscal year 1951 will
be 11 times greater than 1939.
This increase represents chiefly the
cost of services and benefits provided
the 15,000,000 veterans of World
War II and their families.
As temporary readjustment programs taper off, veterans' expenditures should decline over the next
few years. However, the expenditure trend for medical care and pensions is slowly upward. As a result,
veterans' programs will continue to
be a large Budget item for many
years.
In 1951, an average of 1,800,000
veterans will take part in the education and training program. Less
than a fourth of them will be enrolled
in colleges. The remainder will be
in school, job, and farm training
courses.
More than 3,000,000 veterans or
their families will receive pensions
and compensation in 1951. This is
an increase of close to 100,000 over
1950.
Expenditures for unemployment
and self-employment allowances have
dropped sharply since July 1949,
when these benefits expired for most
veterans. An average of only 59,000
14

claimants is expected in 1951, compared to 1,400,000 in 1947.
In 1951, about 386,000 veterans
will obtain loans—principally for
homes. Although loan guarantees
will total 2 billion dollars, Budget
expenditures in 1951 will be 68 million dollars, chiefly for payment of
the first year's interest on loans.
The construction of veterans' hospitals to provide 37,000 new beds and
other facilities is now about one-third
completed. When this planned program is finished (costing in all 872
million dollars), there will be sufficient hospital beds for all serviceconnected cases and a larger number
of hospital beds than at present for
non-service-connected cases.
In the fiscal year 1951, medical
care for an average of 138,000 veterans in hospitals and homes, and
over 5,000,000 outpatient examinations and treatments are expected
to cost about 590 million dollars.
NOTE—About 6,800,000 veterans of the two World Wars
and present servicemen continue to hold active Government
Life and National Service Life Insurance policies. Premiums
and earnings, plus Government contributions of over 4
billion dollars, have built up the assets of these trust funds
to 9.7 billion dollars. An initial dividend of nearly 3
billion dollars will be paid from trust funds during 1950
and 1951 to all World War II servicemen who hold or have
held National Service Life Insurance. Since this sum will
be paid from a trust fund, it will not be a Budget expenditure,
just as the receipts of the fund were not included in Budget
receipts.

BUDGET EXPENDITURES AG

RC
I ULTURE ANDAGRICULTURALRESOURC

A m o u n t of M o n e y

Billions o f D o l l a r s

6.7_

6.1
_juh

j _ jiii
i ju.ijim
_iuB

uZ
ii
jum
J Z ||ij|ij

I IU 3 3

iiiiii.niii __

| Ui; l llllim

BJ^;lii; i'Hi liMiB

JJ*™^' Z

0.6

[Sli
in -mtm
[•UUI _ 111—«

MSSST-.

1939

1951

1950 •

1949

Estimated

Estimated
F I S C A L

Y E A R S

M i l l i o n s of Dollars
Where

the Money

Will

Go
5 0 0

a JoL

1,500

mM
n

1,000

8 , 0, 0 0

2 , 5 0—
0

[2,481

Readjustment Benefits: Education and Training

n
12,237

Pensions and Compensation

2 5 5

Hospital and Other Construction

2 0 7

Readjustment Benefits: Unemployment, Loan Guarantee, Other

Hospital O p e r a t i o n , Other Services,and Administration

SOCIAL WELFARE, HEALTH, AND SECURITY
In 1939, temporary work programs
to combat unemployment dominated
Federal expenditures for social welfare, health, and security. The absence of such programs today accounts for the sharp drop in expenditures for this function.
More than half of all expenditures
in 1951 will be grants to States to
help them provide public assistance
to the aged, to dependent children,
and to the blind.
At present, 4,200,000 persons are
receiving this public assistance, compared with 2,700,000 drawing benefits from the old-age and survivors
insurance trust fund. Average public assistance benefits for the aged
are 45 dollars a month, whereas oldage insurance benefits are only about
26 dollars.
The President has recommended
substantial improvements in the oldage insurance system to make it the
mainstay of social security, and to
reverse the present trend of increasing
dependence on public relief.
Since 1937, the Government has
administered a separate retirement
insurance program for railroad workers. This is financed by pay-roll
taxes on railroads and their employees. These tax collections, when
transferred to the railroad retire16

ment trust fund, are counted as a
Budget expenditure.
The Public Health Service gives
both financial and technical help to
State and local governments for
many health activities, such as the
control of communicable diseases,
hospital construction, and mental
health. It also sponsors research
programs into the causes and cure of
such diseases as cancer, arthritis, and
tuberculosis.
Expenditures for crime control and
correction include the costs of the
Federal Bureau of Investigation, the
Secret Service, narcotics control, the
work of the United States district
attorneys and marshals, and Federal
prisons.
The Federal school lunch program
provides Federal grants to States to
help pay for low-cost lunches for
about 7 million school children.
Other expenditures for social welfare include health, education, and
welfare services to Indians and grants
to States for rehabilitation of the
physically handicapped.
NOTE.—The old'age and survivors insurance trust fund
now totals about 12 billion dollars. Benefits totaling about
800 million dollars will be paid from it in 1951 under
present law.
The railroad retirement trust fund totals nearly 2.5
billion dollars, from which about 365,000 people will draw
350 million dollars in retirement benefits during 1951.
The President has recommended a medical-carcinsurance
program. This program, too, would be financed through a
trust fund by employer and employee contributions.

BUDGET EXPENDITURES

SOCIAL WELFARE, HEALTH, AND SECURITY

A m o u n t of M o n e y

Billions of D o l l a r s

3.9

flSuai I
2.7
2.3

££ |

1948

1939

F I S C A L

Where

1950

1951

Estimated

Y E A R S

the Money

Will

M i l l i o n s of Dollars

Go
2 5 0

5 0 0

7 5 0

1,000

, 2 5 0

1 , 5 0 0

Railroad Retirement—Payments to Trust Account

iJft

4 3 2

amotion of Public Health

me Control and Correction

I
867308 O - 50 - 3

I•

1
17

HOUSING AND COMMUNITY DEVELOPMENT
In the field of housing, the Federal Government assists in furnishing credit to home builders, home
buyers, mortgage lenders, and local
communities.
While the Government makes some
direct loans, its principal role is
insuring or guaranteeing private
loans, and purchasing mortgages
from private holders.
Currently about one-third of all
new private housing construction is
financed with mortgages insured by
the Federal Housing Administration—a method of stimulating home
building which has only minor effects
on the current Budget.
To make credit for home building
more readily available to veterans
and others, Government-guaranteed
or insured mortgages are purchased
from banks and other financial institutions by the Reconstruction Finance Corporation. These purchases
will amount to 1 billion dollars in
1951, about three-fourths of all expenditures in this function.
Although these purchases appear
as Budget expenditures in 1951, the
Government will be reimbursed for
them in future years.
The Home Owners' Loan Corporation will have an excess of receipts
over expenditures of 134 million
dollars in 1951. By the end of 1951,
all of the more than one million
18

loans made to home owners during
the depression will have been repaid
or sold.
To assist middle-income families
in obtaining housing at prices they
can afford, the President has recommended a new program to help
housing cooperatives and other nonprofit organizations secure long-term
private financing at favorable terms.
Other aids to private housing include loans and grants to improve
farm housing and special loans to
promote modern large-scale construction methods.
In the field of public housing, the
Government will make loans to 425
communities for low-rent housing
projects during the first two years
of the recendy enacted program to
assist low-income families.
In the field of community development, loans will be made to about
80 cities to assist them in attacking
city slums. These loans, authorized
for the first time in the Housing
Act of 1949, will be used in planning projects and clearing land for
redevelopment by private enterprise
or public agencies.
The Government also makes advances to States and localities to
help them prepare plans for community facilities, such as schools and
water systems. These advances are
repaid when the projects are built.

BUDGET EXPENDITURES AGRIC
nount of

ULTURE ANDA G R I C U L T U R A LRESOURCES

Money

M i l l i o n s of D o l l a r s

1,329

282

TWIT" ^ "I'll— i

-154

1939
F I S C A L

Where

the Money

1949

1950

1951

Estimated

Y E A R S

Will

Research and Other General Housing A i d s

EDUCATION AND GENERAL RESEARCH
Most of the educational and research activities of the Federal Government are associated with other
major purposes and therefore are
classified in other functional groupings—for example, educational benefits for veterans are classified in
veterans' services and benefits, and
military research is classified in
national defense.
Of the fiscal year 1951 expenditures
included in the category of education and general research two-thirds
is for grants to States, recommended
by the President, to assist them in
financing the current costs of
elementary and secondary schools
and to make possible a better education for millions of children. This
program will require expenditures
of 290 million dollars in the fiscal
year 1951.
The President has also proposed
that the States be assisted in surveying their needs for additional school
facilities and that some immediate
assistance be given to States to help
build schools in-certain communities
where an acute shortage is directly
traceable to an influx of Federal
workers and their families.
20

The Government currently administers a program of grants-in-aid to
assist the States in providing vocational education to over 3,500,000
students. Other activities include
the provision of aid for the operation
of colleges which were established in
each State with the assistance of
Federal grants of land.
The decennial census of population, required by the Constitution as
the basis for determining the number
of Representatives of each State in
the Congress, will be taken in the
spring of 1950.
The Library of Congress, the
Smithsonian Institution, the National Gallery of Art, and the Botanic Gardens are the principal general libraries and museums supported by the Federal Government.
Additional libraries and museums
are operated as an incidental part of
other functions. The Government
also aids certain special institutions
such as Howard University, the
American Printing House for the
Blind, and the Columbia Institution
for the Deaf.

BUDGET EXPENDITURES SOCIAL WELFARE, HEALTH, AND
Amount

Money

SECURITY
M i l l i o n s of Dollars

mmuB
IllUlllilil

Where

the Money

Will

1950

1951

Estimated

290
General Aid—Elementary and Secondary School Operating Expenses

A i d for School Surveys and Emergency Construction

V o c a t i o n a l Education Grants and Other Activities Promoting Education

Seventeenth Decennial Census

Library and Museum Services

Educational A i d to Special Groups

y^pi19
General Purpose Research Other than Decennial Census

AGRICULTURE AND AGRICULTURAL RESOURCES
Total expenditures for agricultural
programs have greatly increased since
before World War II, mainly because
of price supports on farm commodities, loans for rural electrification,
and greater emphasis on programs to
conserve the Nation's soil resources.
In order to prevent serious hardship to farmers from drastic price
declines and to assist them in making
necessary adjustments from wartime
conditions, the Government supports
the prices of many farm commodities
at certain specified levels. With the
bumper crops of 1948 and 1949, farm
prices declined and Government expenditures for commodity loans and
purchases increased, mainly for cotton, wheat, corn, and potatoes.
In fiscal year 1951, price support
outlays are expected to be about 950
million dollars, nearly 600 million
dollars less than in 1950, but actual
outlays will depend on weather,
changes in demand, and other
factors difficult to forecast accurately.
Loans for rural electrification have
greatly increased since the war
(about 80 percent of our farms are
now electrified, compared with 30
percent in 1940), and a program for
rural telephones, authorized last
year, is being initiated.
22

In order to encourage conservation
of soil resources, payments are made
to farmers for application of fertililizers, contour cultivation, and other
measures for improved management
of soil resources.
The Department of Agriculture
also aids farmers through basic research, cooperative extension work,
disease and insect control, marketing
services, and technical advice and
assistance.
In addition to Commodity Credit
Corporation price support expenditures, a permanent appropriation
equal, to 30 percent of customs duties
is available each year to aid in disposal of surplus commodities. In
1951 this fund will be used largely to
buy surplus perishable commodities
for distribution through welfare agencies and the school lunch program,
and to encourage agricultural exports.
Under the International Wheat
Agreement, ratified in 1949, the
United States will be assured of a
minimum amount of wheat exports
at agreed-upon prices. At present
these prices are lower than price
support levels, and the difference is
made up by the Government.

BUDGET EXPENDITURES
Amount

AGRICULTURE A N D AGRICULTURAL RESOURCES
Billions of D o l l a r s

Money

Estimated
F I S C A L

Estimated

Y E A R S

M i l l i o n s of Dollars
Where

the Money

Will

Go
4 0 0

6 0 0

800

1,000

Price Support, Supply, and Purchase Programs—Commodity Credit Corporation

Rural Electrification and Telephones

Financial A i d s for Agricultural Land Conservation

218
Development and Conservation, except Financial A i d s

Removal of Surplus Agricultural Commodities

International Wheat Agreement

Other Loans and Financial A i d s

NATURAL RESOURCES
Federal programs for the development and conservation of our natural
resources have expanded over the
last decade as the demands on these
resources have grown.
Expenditures for these programs in
fiscal year 1951 will amount to more
than 2 billion dollars, nearly 400
million dollars more than in 1950.
Largest factor in this increase is the
development of atomic energy, a program which accounts for more than
a third of all expenditures in the field
of natural resources.
The development of land and water
resources results in many benefits—
the generation of hydroelectric power
and its transmission and distribution, navigation, flood control, irrigation, soil and forest conservation,
preservation of fish and wildlife,
and recreation. For many of these
expenditures, the Government will
be reimbursed in later years through
power revenues or other repayments.
Largest expenditures on land and
water resources in 1951 include 563
million dollars by the Corps of
Engineers for its nation-wide program of flood protection and power
24

facilities, and 398 million dollars by
the Bureau of Reclamation for irrigation and power projects in 17
Western States. These expenditures
represent the cost of continuing work
on projects already under way. No
new projects for flood control or
reclamation were included in the
1951 Budget.
Expenditures in 1951 by the
Atomic Energy Commission will
provide for the production of fissionable materials; manufacture of weapons; and research and development
in nuclear science, including peacetime applications to medicine, biology, agriculture, and industry. Continued attention will be given to the
development of nuclear reactors,
with production of atomic power for
peacetime use a major objective.
Federal expenditures for forest
resources, largely by the Forest
Service, provide for protection and
management of government-owned
forests, research on forestry and forest
products, participation with States
and other agencies in forest-fire control, and cooperation with farm and
other private forestry in various other
aspects of forestry.

BUDGET EXPENDITURES

Amount

NATURAL RESOURCES NOT PRIMARILY
AGRICULTURAL

Money

J).23
( HIM'IIIIII _

UUUMI

I inimi ^ -JS5H
1939
F I S C A L

Y E A R S

M i l l i o n s of Dollars
Where

the Money

Will

Go
4 0 0

600
—I

800
1

1,000

1,200

Atomic Energy

Forest and Mineral Resources

Fish and Wildlife, Recreational and Other Resources

TRANSPORTATION AND COMMUNICATION
To help assure adequate transportation and communication industries, the Federal Government
furnishes many facilities and services, regulates economic and safety
aspects of these industries, and in
some cases assists in their development through direct or indirect
subsidies.
Federal expenditures for highways
are mainly in the form of grants-inaid to States, to assure the development of a basic system of national
highways. More than 62,000 miles
of roads have already been improved
under this aid program since the
war.
In the field of navigation aids and
facilities, the Coast Guard operates
lighthouses and other navigation
aids, maintains search and rescue
facilities, and engages in law enforcement related to maritime activities. It is expected to spend 181
million dollars in fiscal year 1951.
River and harbor improvements in
1951 will require 156 million dollars
for construction—entirely on projects now under way—and 87 million
dollars for maintenance, operation,
and administration.
Since 1939, air-line traffic has increased by over 800 percent, and
26

private flying has increased in similar
degree. This growth has required a
corresponding expansion in the program of the Civil Aeronautics Administration, which includes installation and operation of air-navigation facilities, enforcement of safety
regulations, and grants-in-aid for
airport construction.
Expenditures to aid the merchant
marine are mainly shipbuilding and
ship-operating subsidies, designed to
maintain the minimum facilities required for national security by putting United States costs on an equal
basis with lower foreign costs.
The deficit sustained in postal
operations has grown substantially
since the war, and in fiscal year 1951
is estimated at 555 million dollars
with present postal rates. This large
deficit results from the fact that
postal rates have not been raised
sufficiently to cover increased costs
of wages, transportation, and materials.
The President has recommended
higher postal rates to reduce the
deficit in 1951 to 160 million dollars,
which would represent costs, such as
air-line subsidies and Government
mail, which should not be covered
by postal rates.

BUDGET EXPENDITURESAGRICULTUREA
Amount

DAGRICULTURALR E S O U R C E S

Monty

Billions o f D o l l a r s

1.68

0 . 5 0

as
f I S C A L

Y E A R S

•SiiiilBlill
Millions of Dollars
Where

th« Money

Will

Go
2 0 0

3 0 0

4 0 0

id Facilities

(Basis of recommended postal rate increases)

86
Regulatory and Other

FINANCE, COMMERCE, AND INDUSTRY
The finance, commerce, and industry programs of the Federal Government are concerned primarily with
promoting effective competition and
with providing a wide variety of financial and other aids to private
business.
The Reconstruction Finance Corporation makes loans to private businesses, either directly or in participation with private lending institutions,
where other sources of funds are not
available. Loans approved by the
Corporation have recently averaged
about 450 per month, or about twice
the rate a year ago.
While rent control has recently
been eliminated on about 2.6 million
28

dwelling units, over 12 million units
remain under control. A further extension of one year has been recommended by the President to prevent
serious hardship to tenants in areas
where housing shortages remain
critical. Control over exports is
now largely confined to items of a
strategic nature, which are controlled
on a world-wide basis for the protection of the national security.
Other business promotional and
regulatory programs are carried on
by the Department of Commerce, the
Federal Trade Commission, and the
Securities and Exchange Commission.

BUDGET EXPENDITURES AGR
Amount

ICULTURE

ANDAGRICULTURALRESOURCE
lions

Money

mum!:n jiii ay|M
JHUUu
i ^ uJMB
Himiii

F I S C A L

Where

1950

195 J

Estimated

Y E A R S

the Money

Will

Business Loans

Rent Control and Export Controls

Other Promotion and Regulation of Business

LABOR
In the field of labor, the Federal
Government provides for important
employment, regulatory, statistical,
and other services designed to encourage better labor relations, enforce standards of wages and hours,
and to provide employment opportunities. Expenditures for these purposes will amount to 243 million
dollars in 1951.
The Federal Government pays the
administrative costs for State operation of public employment offices
and unemployment insurance. In
1951 about 80 percent of all expenditures in the labor field will be
made to States to pay these costs.
Public employment offices placed
over 12 million persons in jobs in
the fiscal year 1949, and an average
of about 1.2 million persons a week
received unemployment compensation.
The Department of Labor enforces
laws on wages and hours, child labor,
and labor standards of contractors
for the Government. The Government also provides mine safety inspection, advice to States on labor
laws, and assistance to employers
and unions in setting up effective
training for apprentices.
30

The Mediation and Conciliation
Service helps labor and management
reach setdements of labor disputes in
interstate industries. The National
Mediation Board performs a similar
service for railroads. The National
Labor Relations Board determines
(often through elections) what union
is entitled to represent workers in
bargaining units and investigates
charges of unfair labor practices
brought by unions or by employers.
In his Budget Message the President also proposed certain new legislation. He recommended increased
coverage and benefits for unemployment insurance. He also recommended a permanent Fair Employment Practice Commission and a
program of grants to States to assist
them in promoting industrial safety.
Finally, he recommended initiating
a labor extension service. This
activity would make available to
wage earners educational programs
designed to promote sound labormanagement relations.
NOTE.—Unemployment compensation benefits are paid
from the Unemployment Trust Fund to which employers
pay taxes. These transactions of the trust fund are not
included in Budget receipts and expenditures. The fund,
which now totals about S billion dollars, paid out 1.2
billion dollars in benefits in the fiscal year 1949. Average
benefits paid to unemployed workers were slightly less than
20 dollars a week in that year.

BUDGET EXPENDITURES
Amount

AGRICULTURE

AND

AGRICULTURAL

Money

RESOURCES

M i l l i o n s of Dollars

243

1939
F I S C A L

Where

1950

1951

Estimated

Y E A R S

the Money

Will

ment Compensation and Placement Activities

Labor Standards and Training

Mediation and Regulation of Labor Relations

Labor Information, Statistics, and General Administration

GENERAL GOVERNMENT
Expenditures for General Government include legislative and judicial
activities of the Government as well
as many Government-wide administrative or "housekeeping" services
and programs such as financial and
property management.
Expenditures for tax collection
finance the operations of the Bureau
of Internal Revenue which processed
almost 93 million tax returns in 1949.
Other bureaus in the Treasury Department are assigned such phases of
financial management as administering the public debt, collecting customs, and coining and printing
money. The auditing of Federal expenditures is done by the General
Accounting Office.
32

Government employees are not
covered by old age and survivors
insurance under the Social Security
system. About 1,700,000 Federal
employees are covered, however, by
a general retirement system to which
both they and the Government, as
the employer, contribute. The Government's share in this retirement
system in 1951 will be 333 million
dollars.
The General Services Administration performs centralized purchasing,
building maintenance, and records
disposition for various Government
agencies. Among other central services are the work of the Civil Service
Commission and of the Government
Printing Office.

BUDGET EXPENDITURES A
Amount

G
C
R
U
IL
T
U
R
EANDAGR
C
IULTURALRESOURCES

Money

Billions o f D o l l a r s

1.27

1.17

122
"'"lilt: : ~
UIMIIIilil
llllllll: ~
IUMHUM ^

MUMiimii:.

0.56

MUMIIIIII li'. "

1939

F I S C A L

Where

1948

1950

1951

Estimated

Y E A R S

the Money

V^J" »
jVVg

1949

Will

Legislative and Judicial Functions

170

Weather Bureau, Immigration Control, and Other

I
33

INTEREST ON THE PUBLIC DEBT
The increase in interest payments
since 1939 roughly corresponds to
the sixfold increase in the total outstanding debt. Year-to-year variations in the postwar period have

reflected primarily changes in the
rates of interest and in the relative
amounts of different issues, and increases in interest payable on savings
bonds as they approach maturity.

THE PUBLIC DEBT
Wartime borrowing accounts for
almost all the increase in the public
debt over the past decade. Despite
the high wartime tax rates, over half
of the costs of World War II were
covered by borrowing.
About 40 billion dollars of the public debt is held by Government
agencies and trust funds. Of the
debt held by the public, individuals
and unincorporated businesses own
about a third, chiefly savings bonds.
Holdings of commercial banks and
the Federal Reserve banks account
for another third. Insurance com34

panies and private corporations and
associations hold most of the remainder.
Budget deficits of 5.5 billion dollars
and 5.1 billion dollars are estimated
for fiscal years 1950 and 1951, respectively. These amounts will be financed by additional borrowing,
which will increase the public debt
by June 30, 1951, to an estimated
263.8 billion dollars. To the extent
that new tax legislation produces net
additional revenue, the deficit in 1951
and the need for new borrowing will
be reduced.

BUDGET EXPENDITURES

INTEREST O N THE PUBLIC DEBT

Billions o f D o l l a r s

Estimated
F I S C A L

Estimated

Y E A R S

A M O U N T

Billons of Dollars

THE

PUBLIC

252.3

(End of Fiscal Year)

4 0 . 4

1
1939
Estimated
F I S C A L

Estimated

Y E A R S

35
i

DEBT

RECEIPTS FROM AND PAYMENTS TO THE PUBLIC
Up to now, this booklet has described Budget receipts, Budget expenditures, and the Budget surplus
or deficit.
While most Government activities
are directly reflected in the Budget,
some important programs are operated through trust funds for which
the Federal Government acts mainly
as a trustee. Examples of these
funds are the unemployment trust
fund, the old-age and survivors insurance trust fund, and the veterans'
life insurance funds. Pay-roll taxes
or other receipts flow into these
funds, and payments are made to
beneficiaries from them. These
transactions are not included in
Budget receipts and expenditures.
On the other hand, Budget receipts and expenditures include a
small number of transactions which
do not involve an actual current
outflow or inflow of money.
To reflect the total flow of money
between the public and the Federal
Government, a concept of "receipts
from and payments to the public"
has been developed. This concept
has also been called the "consolidated cash budget" and "Federal
cash receipts and cash payments."
36

For many purposes, the figures
showing the total flow of money between the Federal Government and
the public are highly significant.
For example, the President's Council of Economic Advisers uses the
consolidated cash data, rather than
the conventional Budget data, in its
periodic analyses of the economic
impact of Federal financial transactions.
Trust fund expenditures to the
public are usually smaller than receipts, since the funds are currently
building reserves for the payment of
future benefits. As a result, the relationship between total Federal cash
receipts and cash payments is currently more favorable than the
relationship between Budget receipts
and Budget expenditures.
In the fiscal year 1951 it is estimated that payments to the public
will exceed receipts from the public
by 2.7 billion dollars. This is about
half the estimated Budget deficit.
The chart on the opposite page
indicates the adjustments which are
made in Budget receipts and expenditures in order to arrive at estimates of total cash receipts from and
payments to the public.

APPENDIX

RECEIPTS FROM A N D PAYMENTS TO THE PUBLIC
Fiscal Y e a r 1951

BUDGET

Billions o f D o l l a r s

Estimated

RECEIPTS'

| 3 7.3

DEDUCT:

| -0.2

Payments by Government Agencies and Trust Funds to Treasury
ADD

Trust Fund Receipts

from the

Public:

O l d A g e Survivors Insurance Taxes

ifi + 1-2
Unemployment Insurance Deposits
+

0.5

Veterans Life Insurance Premiums

1+0.6
Other
TOTAL

•••> ,

RECEIPTS

FROM

.
THE

(43.1

PUBLICs

n
i
EXCESS P A Y M E N T S O V E R RECEIPTS

BUDGET

2.7

EXPENDITURES

42.4

1-1.0

DEDUCT:
Transfers from Treasury to Trust Funds

• -'-0.9
m

Interest Paid to Trust Funds

Interest Accrued but N o t Paid—U. S. Savings Bonds

ADD

I"06
jg

Salary Deductions—Federal Employees' Retirement

| -0.4

Payments by Government Agencies to Treasury

|-0.1
+ 2.3

Trust Fund Payments

to the

Public:

O l d A g e Survivors Insurance Benefits

Withdrawals for Unemployment Benefits
8 + 1.0
Veterans Life Insurance Refunds and Benefits

Federal Employees' Retirement Annuities
h0.3

Railroad Retirement Benefits
+ 0.4

Other
ADD:
Redemption of A r m e d Forces Leave Bonds and Similar Securities
TOTAL

PAYMENTS

THE

PUBLIC

+ 0.5

FEDERAL CIVILIAN PAY ROLLS
Budget expenditures of 42.4 billion
dollars in fiscal year 1951 include
approximately 4.8 billion dollars for
the wages and salaries of civilian employees in the Executive Branch.
Thus, approximately one-tenth of
the Budget will be spent for civilian
personal services.
This Budget amount excludes
wages and salaries for those employees who are paid from receipts

of their agencies' operations (primarily the Post Office and Government-owned corporations), or from
trust funds. Wages and salaries of
these employees—about half a million in number, mostly postal service
employees—are estimated at 1.9
billion dollars. Thus, pay rolls for
all civilian employees are estimated
at 6.7 billion dollars for fiscal year
1951.

FEDERAL CIVILIAN EMPLOYMENT
Substantial reduction in Federal
civilian employment has been
effected during the current fiscal
year. Civilian employment in the
Executive Branch is now below
2,000,000, compared with the peak
of 3,770,000 reached during the
war. In 1951, the Budget provides
for average civilian employment of
38

1,960,000, a further reduction from
the present level.
About 75 percent of the 1,960,000 employees in 1951 will be in
the Department of Defense, Post
Office Department, and Veterans'
Administration, compared w i t h
only 62 percent in these agencies
in 1939.

APPENDIX B

FEDERAL C I V I L I A N PAY ROLLS RELATED TO FEDERAL EXPENDITURES

Amount

Money

Billions o f D o l l a r s
TOTAL $4 2.4

Note:

P a y Rolls e x c l u d e salaries a n d wages

p a i d to e m p l o y e e s in t h e Postal Service a n d in
Government-owned corporations.

TOTAL

(See text.)

Federal Civilian Pay

wmm

1939

1951
Estimated

FISCAL

YEARS

FEDERAL

CIVILIAN

EMPLOYEES

{frtb &
e

200

A G E N C Y

400

T h o u s a n d s of Employees

600

IQOO

o rt e

S 3 P S

National Defense

o oe o o

192
Veterans

o»

1951 T O T A L ,
1,960 Thousands

192

(Averase Employment)
Executive Branch

ti o ^ a o

J 34 I

/includes State Dept., Commerce Dept., Labor Dept., Ju:
A D e p t . , Interior Dept., Federal Security Agency, and c
[agencies.

A l l Other

Post Office

BUDGET EXPENDITURES PER CAPITA
During the fiscal year 1939, Federal
Government expenditures amounted
to about 69 dollars for each man,
woman, and child in the country.
In the fiscal year 1951, the per capita
expenditure is estimated at more than
four times that amount, 278 dollars.
About 80 percent of the increase
has occurred in four areas—national

defense, international affairs and
finance, veterans' services and benefits, and interest on the public debt.
The percentage of increase for all
other programs is less than the rise
which has taken place in average
Government salaries and in the prices
the Government has had to pay for
the goods it buys.

BUDGET EXPENDITURES
AS A PERCENTAGE OF NATIONAL INCOME
Since fiscal year 1939 the national
income of the United States has more
than trebled. Federal Budget expenditures, however, have risen to about
four and three-quarters times their
1939 level. Whereas Budget expenditures were less than 13 percent of
the national income in 1939, they
are estimated at about 18 percent of
the national income in 1951.
The proportion of the national income which in 1951 will be devoted
40

to four purposes—national defense,
international affairs and finance, veterans' services and benefits, and interest on the public debt—is itself
equal to the 13 percent devoted to all
Federal expenditures during 1939.
On the other hand, 1951 expenditures for non-war-related programs
are estimated to represent 5.3 percent
of the national income, compared
with 9.1 percent spent for these programs in 1939.

A P P E N D I X

BUDGET EXPENDITURES

PER

CAPITA

Dollars

1939

1951

National
Defense

Veterans
Services

f I S C A L YEARS—Note, 1951 En.mot.d

BUDGET

EXPENDITURES

A S

PERCENTAGE

N A T I O N A L

INCOME

Percent

• I

9.1

5.8

5.3

2.4

1939

1951

National
Defense

1939

f'
1951

Veterans
Services

2.0

i l l
3

.... 10111 " s a r M

1939

1951

Debt
Interest

1939

1951

International
Affairs

1939

1951
All
Other

FISCAL YEARS—Note: 1951 £ « w a t « d

APPENDIX D

HOW GOVERNMENT ACTIVITIES ARE FINANCED
Under the Constitution, the Congress must authorize the expenditure
of all Federal funds.
These authorizations to spend
money not only specify the amounts,
but also the purposes, of the expenditures. Authorizations by Congress
may take a number of forms.
The most common is an "appropriation" which may a u t h o r i z e
Government agencies to employ personnel, purchase supplies and equipment, award contracts, make grants
to States or to incur other obligations.
In certain cases, Congress enacts
contract authorizations. These permit an agency to make contracts or
incur other obligations for goods and
services, but do not permit the actual
payment of bills arising from these
obligations. In order to pay these
bills, Congress later enacts appropriations to "liquidate" or pay off these
obligations. Contract authority is
used chiefly for procurement where
goods are not to be delivered until
a year or more after they are ordered.
In addition, Congress sometimes
authorizes Government agencies (usually corporations) to borrow funds
from the Treasury and to use these
funds to finance their activities.
This type of authorization is ordinarily used for agencies (such as the
Reconstruction Finance Corporation)
making loans or other investments
42

which will later be repaid to the
Government.
Expenditures occur when payments are made and checks written
after goods and services have been
received. This may be months or
even years after the obligations have
been incurred. For this reason, the
authorizations enacted by Congress
for a fiscal year and the expenditures
which occur in that year cannot be
directly compared.
For example, of total Budget expenditures of 42.4 billion dollars estimated for 1951, about 12.1 billion
dollars, or 29 percent, will go to pay
off obligations incurred in 1950 or
earlier years.
Expenditure estimates contained in
the President's Budget, therefore,
represent both the amounts required
to pay off prior year obligations and
the expenditures which will arise
from the requests for new authorizations included in the 1951 Budget.
Of the new authorizations enacted by
Congress for 1951, some will result in
expenditures in 1952 and later years.
Authority to incur new obligations
for the fiscal year 1951 which the
President requested in his Budget
totals 40.5 billion dollars and is substantially below the 1950 amount.
The President pointed to this fact as
an indication that the downward
trend in expenditures from 1950 to
1951 may be expected to continue.

APPENDIX E

IMPROVEMENT IN MANAGEMENT
In an organization as large and
complex as the Executive Branch
of the Federal Government, continuing attention must be given to
improvements in organization and
management.
In his Budget Message the President outlined plans to continue a
vigorous program to effect economies
and improve the operations of Federal agencies.
The reports of the Commission
on Organization of the Executive
Branch of the Government, headed
by former President Hoover, have
provided valuable and concrete recommendations and have stimulated
widespread support for improvements in organization and management. Several major reorganizations were made in 1949, along the
lines of the reports of the Commission.
Most important among these was
the creation of a single Department
of Defense. This step has brought
about and should continue to result
in major economies. Another important reorganization was the consolidation of a number of previously
separate units concerned with activities affecting all Government agencies, such as making central pur-

chases, constructing public buildings,
and storing Government records.
These units were brought together
into a newly established General
Services Administration.
Additional important reorganization actions were taken in 1949 in the
Department of State, the Post Office
Department, the Department of
Commerce, and the Civil Service
Commission. Improved operating
methods were installed within the
Treasury Department and other
agencies.
The President has indicated his intention to transmit to the Congress
during the current session further
proposals for reorganization of the
Government.
In addition to reorganization actions, the President has taken several
steps to increase the efficiency of
Government activities through improved management practices.
Among other things, he has established the Advisory Committee on
Management Improvement, consisting of outstanding public and private
experts. He has also directed the
heads of all Government agencies to
make systematic and regular reviews
of all the operations under their
direction.
43

APPENDIX F
FEDERAL GOVERNMENT BUDGET RECEIPTS AND EXPENDITURES
Fiscal

year8 1915

through

1961

[In millions]
Total
Budget
receipts

Fiscal year

1915.
1916.
1917.
1918.
1919.
1920.
1921.
1922.
1923.
1924.
1925.
1926.
1927.
1928.
1929.
1930.
1931.
1932.
1933

$683
762
1,100
3,630
5.085
6,649
5,567
4.021
3,849
3,853
3,598
3, 753
3,992
3,872
3,861
4,058
3,116
1,924
2.022

Total
Budget
expenditures

Surplus or
deficit

$746
713
1,954
12,662
18,448
6,357
5,058
3,285
3,137
2,890
2,881
2,888
2,837
2,933
3,127
3,320
3, 578
4,659
4,623

-$63
+48
-853
-9,032
-13,363
+291
+509
+736
+713
+963
+717
+865
+1,155
+939
+734
+738
-462
-2,735
-2,602

Total
Budget
receipts

Fiscal year

1934..
1935-.
1936..
1937.1938..
1939..
1940-.
1941..
1942..
1943..
1944..
19451946..
1947..
1948..
1949..
1950 1
1951'

Total
Budget
expenditures

$3,065
3,729
4,069
4,979
5,803
5,104
5,264
7,227
12,696
22,201
43,892
44, 762
40,027
40,043
42,211
38,246
37, 763
37,306

$6,694
6,521
8,494
7,756
6,979
8,966
9,183
13,387
34,187
79,622
95,315
98,703
60,703
39,289
33,791
40,057
43,297
42,439

Surplus or
deficit

-$3,630
-2,791
-4,425
-2,777
-1,177
-3,862
-3,918
-6,159
-21,490
-57,420
-51,423
-53,941
-20,676
+754
+8,419
-1,811
-5,533
-5,133

i Estimated.

FEDERAL GOVERNMENT BUDGET EXPENDITURES BY FUNCTION
Fiscal

years 1989,

1943

through

1951

[In millions of dollars]
Function

1939

1943

1944

1945

1946

1947

1948

1949

1950 1951
(est.) (est.)

National defense
1,077 70,267 83,766 84,569 45,134 14,316 10,961 11,914 13,148 13,545
Veterans' services and benefits
605
6,905 6,080
559
744 2,094 4,414 7,370 6,567
International affairs and finance
166
677 1,462 6,542 4,782
5,964 4,711
19
244
Social welfare, health, and security
3,946 1,190 1,013 1,046 1,048 1,314 1,869 1,907 2,297 2,714
82
282 1,006 1,329
Housing and community development. « 154 302
308 ® 193 • 199 348
46
150
80
64
63
70
125
434
Education and general research
36
88
749 1,244
574 2,512 2,671 2,206
Agriculture and agricultural resources . 1,198
1,203 1,610
Natural resources not primarily agri622 U
1,512 1,845 2,218
cultural
243
247
228
409
548 1,224 1 ,f" 1,894 1,682
Transportation and communication
789
498 3,576 4,311 3,367
120
212
102
225
Finance, commerce, and industry
106
30
51
264
171
88
193
243
194
219
Labor.
204
174
183
70
240
225
955
950 1,361 1,499 1,170 1,223 1,267
General government
349
665
560
5,725 5,625
Interest on the public debt
941 1,813 2,610 3,622 4,747 4,958 5,188 5 ,r
175
50
Reserve for contingencies
Total
Adjustment to daily Treasury statement basis
Total Budget expenditures

9,028 79,819 95,675
- 6 3 -197 -360

34,179 39,785 43,297 42,439

1,451
252 1,077

305

272

8,966 79,622 95,315 98,703 60,703 39,289 33,791 40,057 43,297 42,439

« Deduct, excess of repayments and collections over expenditures.
U. S. GOVERNMENT PRINTING OFFICE : O — 1 9 5 0

For sale by the Superintendent of Documents, U. S. Government Printing Office
Washington 25, D. C. - Price 20 cents

Of THE UNITED STATES

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Full text of Budget in Brief : Fiscal Year 1951

FRASER