Full text of Budget in Brief : Fiscal Year 1960
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
5 O Y
bazoo P u b m Library
The Federal Budget
in Brief
lr\
m
n\
,KY
Executive Office
of the President
BUREAU
OF THE
Fiscal Year
BUDGET
I960
The Federal Budget in Brief
for the fiscal year 1960
Our objective, as a free Nation, must be to prepare for the momentous
decade ahead by entering the fiscal year I960 with a world at peace, and with
a strong and free economy as the prerequisite for healthy growth in the years
to follow. This can be achieved through Government actions which help
foster private economic recovery and development, and which restrain the
forces that would drive prices higher, and thereby cheapen our money and
erode our personal savings. The first step is to avoid a budget deficit by
having the Government live within its means, especially during prosperous,
peacetime periods.
The 1960 budget reflects our determination to do this.
DWIGHT D .
JANUARY 19,
EISENHOWER.
1959.
1
Introduction
The budget of the United States Government affects all Americans. In it
the President spells out his proposals for meeting our national objectives,
and indicates how the money will be raised to carry out these proposals.
The budget document provides detailed information on the activities for
which appropriations are requested of the Congress. It contains estimates
of revenues and expenditures and also shows how funds previously appropriated by the Congress are being spent.
Because of the vast size and scope of Federal Government activities, the
budget is a large and complex document. To make the important facts
about the budget available in a simpler form, the Bureau of the Budget
prepares this Federal Budget in Brief each year. This issue summarizes
the budget for the fiscal year I960, which President Eisenhower sent to
the Congress on January 19, 1959.
The 1960 budget presents the administration's financial plan for the year
which runs from July 1, 1959, through June 30, 1960. It is a balanced
budget. It contains proposals for new Government activities as well as
proposals to adapt existing programs to changed circumstances.
By the time the fiscal year ends, 18 months after the budget is presented,
many figures will inevitably have changed. International and domestic
conditions may vary from the assumptions on which the 1960 budget was
based. The President may change some of his requests. And the Congress
may modify some of the President's proposals in ways that would affect
the 1960 budget results in one way or another.
It is important for all Americans to know what taxes will be collected
by the Government and how much the administration proposes be spent
in the interests of the country's security and welfare. This booklet gives
these facts.
Director, Bureau of the Budget.
2
Contents
Page
Part 1.
BUDGET S U M M A R Y
Part 2. BUDGET INFORMATION BY FUNCTION
Major national security
International affairs and
finance
Commerce and housing
Agriculture and agricultural resources
Natural resources
Labor and welfare
Veterans' services and benefits
Interest
General government
Part
3 . T H E FEDERAL BUDGET PROCESS AND FINANCIAL SYSTEM
Part 4. SUPPLEMENTARY INFORMATION
Federal public works
Research and development
Federal aid to State and local governments
Federal credit programs
Trust funds
Receipts from and payments to the public
Historical comparisons
5
17
18
20
22
24
26
28
30
32
34
37
43
44
46
48
50
52
54
55
NOTE.—Detail in the tables of this booklet may not add to the totals because of rounding.
3
Budget
Summary
4
Part 1 Budget
Summary
Part 1 of this booklet presents
excerpts from the first part of the
President's budget message for I960.
It summarizes briefly the major
recommendations in the I960 budget,
and provides total estimates of expenditures, receipts, and new authority to incur financial obligations.
Most of these subjects are discussed
in further detail in parts 2 and 4.
5
From the President's 1960 Budget
To the Congress of the United
States:
The situation we face today
as a Nation differs significantly from that of a year
ago. We are now entering a
period of national prosperity
and high employment. This
is a time for the Government
to conduct itself so as best to
help the Nation move forward strongly and confidently
in economic and social progress at home, while fulfilling
our responsibilities abroad.
The budget of the United
States for the fiscal year I960,
transmitted herewith, will
effectively and responsibly
carry out the Government's
role in dealing with the
problems and the opportunities of the period ahead.
This budget proposes to increase our military effectiveness, to enhance domestic
well-being, to help friendly
nations to foster their development, to preserve fiscal
soundness, and to encourage
economic growth and stability, not only in the fiscal year
1960 but in the years beyond.
And it clearly shows that
these things can be done
within our income.
We cannot, of course,
undertake to satisfy all pro
Message
posals for Government spending. But as we choose which
ones the Government should
accept, w e must a l w a y s
remember that freedom and
the long-run strength of our
economy are prerequisite to
attainment of our national
goals. Otherwise, we cannot, for long, meet the imperatives of individual freedom, national security, and
the many other necessary
responsibilities of Government. In short, this budget
fits the conditions of today
because:
1. It is a balanced
budget.—
M y recommendations call for
an approximate equality between revenues and expenditures, with a small surplus.
2. It is a responsible budget. —
By avoiding a deficit, it will
help prevent further increases
in the cost of living and the
hidden and unfair tax that
inflation imposes on personal
savings and incomes.
3. It is a confident budget.—
It anticipates, in a rapidly
advancing economy, increases
in revenues without new general taxes, and counts upon
the unity and good judgment
of the American people in
In the 1960 Budget:
I.
A
BALANCED
BUDGET
Receipts
Expenditures
$77-1 billion
77.0 billion
Surplus
0.1 billion
$76.8 billion
New authority to incur obligations
supporting a level of government activity which such
revenues will make possible.
4. It is a positive
budget —
It responds to national needs,
with due regard to urgencies
and priorities, without being
either extravagant or unduly
limiting.
5. It is an attainable
budg-
et— Its proposals are realistic and can be achieved
w i t h the cooperation of the
Congress.
Any budget is a
financial
plan. The budget for the
Government is proposed by
t h e P r e s i d e n t , but i t is
acted upon by the Congress
which has the duty under the
Constitution to authorize and
appropriate for expenditures.
Therefore, responsibility for
the Government's finances is
a shared one. Achievement
of the plan set forth in this
budget from here on depends
upon congressional response,
popular support, and developments in our economy and in
the world.
FUTURE BUDGET OUTLOOK
The actions we take now
on the I960 budget w i l l affect
the fiscal outlook for many
years to come. This budget
was prepared in the light of
the following general prospects for Government finances
for the next few years.
Growth
of
revenues.—Out
Nation's population and la-
bor force w i l l continue to
increase.
The output per
hour of work on our farms
and in our factories can also
be expected to grow as it
has in the past. With sustained economic expansion,
with employment of our
people and resources at high
levels, and with continued
7
technological advance, the
value of total national production and income will be
substantially larger in the
future than it is today.
Economic growth generates
higher personal incomes and
business profits. Under our
graduated income tax system, with present tax rates,
budget receipts should grow
even faster than national income, although the rise in
receipts certainly will not be
uniform from year to year.
Also, some tax reforms and
downward tax adjustments
will be essential in future
years to help maintain and
strengthen the incentives for
continued economic growth.
With a balance in our finances
in I960, we can look forward
to tax reduction in the reasonably foreseeable future.
In the long run, taxes should
be so arranged that in periods
of prosperity some annual
provision is made for debt
reduction, even though at a
modest rate.
Control of expenditures.—The
estimated I960 expenditures,
while $3-9 billion less than
in 1959, will still be $12.4
billion higher than in 1955,
an average increase of almost
$2.5 billion a year. These
figures emphasize that if we
8
are to succeed in keeping
total expenditures under control in the coming years we
must recognize certain hard
facts.
First, defense spending will
remain extremely large as
long as we must maintain
military readiness in an era
of world trouble and unrest.
Until there is a significant
and secure easing of world
tensions, the actions by the
Department of Defense to realign forces, close unneeded
installations, and cut back
outmoded w e a p o n s w i l l
achieve only relatively small
expenditure reductions.
Keeping our military structure capable and ready to
meet any threat means that
w e m u s t c o n t i n u e to
strengthen our defenses. It
is but a reflection of the world
Budget
Expenditures
Billions
Interest
Agriculture
$6.0
Veterans
Major
$5.1
N a t i o n a l Security
Other
$45.8
$>2.0
/
Fiscal Year I 9 6 0 Estimate
In the 1960 Budget:
II.
GENERAL
RECOMMENDATIONS
1. Strengthen the effectiveness of our Armed Forces by further modernization and by improved efficiency of operations; and strengthen
free world security by continued military assistance to our allies.
2. Assist free nations in their economic development through wellconsidered programs.
3. Promote scientific research and space exploration.
4. Carry forward current public works programs—now larger than
ever before.
5. Continue at a high level programs which promote the general
welfare of our people.
6. Foster community development with increased local participation.
7. Discontinue temporary emergency measures and strengthen
permanent programs for economic stability.
8. Continue the adjustments needed for a freer agricultural economy with less reliance on the Federal Treasury.
9. Reduce the burden on the general public for services to special
groups.
10. Encourage private lending through flexible interest rates for
Government credit programs.
11. Achieve long-run economies by adapting programs to changed
circumstances.
in which we live to stress
again the fact that modern
weapons are complex and
costly to develop, costly to
procure, and costly to operate
and maintain.
Second, without one single
new action by the Congress
to authorize additional projects or programs, Government outlays for some of our
major activities are certain to
keep on rising for several
years after I960 because of
492367 0—5.9
2
commitments made in the
past. For example, commitments for urban renewal capital grants have exceeded net
expenditures by about $200
million or more for each of
the last 3 years. Money to
meet these commitments will
be paid out in the years immediately ahead. Similarly,
continued construction of the
many water resources projects
underway throughout the
country will raise expendi9
tures for these programs in
the next 2 years beyond the
current record amount.
Moreover, inescapable demands resulting from new
technology and the growth
of our Nation, and new requirements resulting from the
changing nature of our society, will generate Federal
expenditures in future years.
As a matter of national policy
we must, for example, make
our airways measure up to
the operational and safety
needs of the jet age. We
must not forget that a rapidly
growing population creates
virtually automatic increases
in many Federal responsibilities.
Fiscal soundness and progress.—Both domestic and defense needs require that we
keep our financial house in
order. This means that we
must adhere to two policies:
First, we must review all
government activities as a
part of the continuing budgetary process from year to
year.
Changing circumstances will inevitably offer
opportunities for economies
in a variety of existing Federal programs.
Consonant
with this policy of review,
reductions have been recommended in this budget for
10
I960 appropriations which
will affect expenditures not
only in that year but also in
later years.
Second, we must examine
new programs and proposals
with a critical eye. Desirability alone is not a sound
criterion for adding to Federal responsibilities. The
impact today and tomorrow
on the entire Nation must be
carefully assessed.
Our economy will continue
to grow vigorously. This
growth will produce additional Federal revenues, but
it will not produce them
without limit. We cannot
take our resources for granted
and we cannot spend them
indiscriminately. We must
deal with new conditions as
they arise. We must choose
what the Federal Government will do and how it will
Budget
Receipts
Billions
Corporation
Income Taxes
$21.5
Individual
Excise Taxes
$8.9
Income Taxes
$40.7
$6.0
Other
Fiscal Year I 9 6 0 Estimate
In the 1960 Budget:
III.
NEW
RECEIPTS
PROPOSALS
H I G H W A Y TRUST PUND:
1. Raise motor fuel tax to 4K cents per gallon.
POSTAL FUND:
2. Revise rates to bring in an additional $350 million in fiscal
1960.
SPECIAL AND TECHNICAL INCOME TAX ADJUSTMENTS:
3. Enact equitable plan for taxing income of life insurance companies.
4. Revise rules for computing percentage depletion allowances to
insure that they are limited to mining processes.
5. Enact corrective legislation relating to taxation of cooperatives.
OTHER RECEIPTS:
6. Raise aviation gasoline tax to 4K cents per gallon and levy
new 4K-cent tax on jet fuels.
7. Adjust other fees and charges so that persons receiving special
services will more nearly pay the cost of those services.
do it. If the choice is responsibly made, reductions
obtained through economies
and the rising revenues accompanying
economic
growth will produce surpluses which can be used to
lessen the burden of taxes,
meet the cost of essential new
Government services, and reduce the public debt. The
proposals in this budget have
been formulated with these
long-run objectives in mind.
BUDGET TOTALS
Budget expenditures are
proposed to be held to $77
billion in fiscal I960, which
is $3-9 billion less than the
estimated 1959 level of $80.9
billion.
With continued vigorous
economic recovery, and w i t h
the relatively few new tax
adjustments proposed herein,
budget receipts in fiscal I960
are expected to reach a total
of $77.1 billion, an increase
of $9.1 billion over fiscal
1959.
Thus a very modest surplus
of about $0.1 billion is estimated for I960, compared
with a recession-induced deficit of $12.9 billion in the
ll
current fiscal year. This estimated balance assumes enactment of recommendations for
extending present excises and
corporation income taxes
scheduled for reduction under
existing law, for some new
tax legislation to remove inequities and loopholes, for
increased charges for special
services, and for reductions
in some current programs.
It also assumes that certain
programs can be made selffinancing by stepping up the
sale of portfolio assets.
Financing of the $12.9
billion budget deficit for the
current fiscal year will increase the public debt to $285
billion by June 30, 1959, $2
billion in excess of the present
permanent debt limit. With
a balanced budget in I960, a
$285 billion debt is indicated
also for June 30, I960. On
the basis of these estimates,
it will be necessary to renew
the request made during the
past session of Congress for
a permanent debt ceiling of
$285 billion and, further, to
seek an increase in the temporary debt ceiling sufficient
to cover heavy borrowing requirements during the first
half of the fiscal year I960,
borrowings which would be
repaid before June 30, I960.
The new authority to incur
obligations recommended for
fiscal 1960 is $76.8 billion,
which is slightly less than
the estimates for expenditures
and for receipts. Further reductions in new obligational
authority can be attained in
1961 by the Congress enacting my recommendations for
program modifications.
BUDGET TOTALS
[Fiscal years. In billions]
1957
actual
Budget receipts
Budget expenditures
Budget surplus ( + ) or deficit ( — )
New obligational authority
12
1958
actual
1959
estimate
1960
estimate
$71.0
69.4
$69.1
71.9
$68.0
80.9
$77.1
77.0
+ 1.6
-2.8
-12.9
+0.1
70.2
76.3
82.4
76.8
In the 1960 Budget:
IV.
HIGHLIGHTS
OF L E G I S L A T I V E
PROGRAM
AUTHORIZE :
1. A transitional 4-year program of grants for construction of civil
airport facilities.
2. Loans and grants to aid areas of chronic unemployment.
3. A 6-year program of urban renewal capital grants.
4. Revenue bond financing for TVA generating facilities.
5. Statehood for Hawaii and home rule for the District of Columbia.
6. Item veto for legislation authorizing expenditures and for
appropriation bills.
7. Revisions in the agricultural price support program.
8. Widening coverage of unemployment compensation.
CONTINUE :
9. Military draft, reserve forces, and related legislation.
10. Mutual security program with strengthened investment guaranties.
11. Agricultural Trade Development and Assistance Act.
12. Current tax rates for corporation income taxes and excise taxes
which are scheduled for reduction under existing law.
STRENGTHEN AND IMPROVE:
13. Housing mortgage insurance programs.
14. Minimum wage and 8-hour laws.
15. Statutory protection in labor-management relations.
16. Requirements for conduct of labor union affairs, including
welfare and benefit plan reporting.
REPEAL :
17. Limitations on minimum strength of military reserve forces
and on disposal of unneeded military real estate.
BUDGET RECEIPTS
Extension
oj present
tax
rates.—The budget outlook
for I960 makes it essential to
extend present tax rates on
corporation profits and certain excise taxes another year
beyond their present expiration date of June 30, 1959.
Development of a more equitable tax
system.—Consider-
able progress was made last
year in removing unintended
benefits and hardships from
the tax laws. Continued attention is necessary in this
area. As the budget permits,
13
additional reforms should be
undertaken to increase the
fairness of the tax system, to
reduce the tax restraints on
incentives to work and invest, and wherever feasible
to simplify the laws.
The Treasury Department
has recently proposed an
equitable plan for taxing the
income of life insurance companies, and will present proposals for corrective amendments of the laws on taxation
of cooperatives and on computing percentage depletion
in the case of mineral products.
Other changes in tax rates.—
In order to make highwayrelated taxes support our vast
highway expenditures, excises on motor fuels need to
be increased 1){ cents a gallon
to 4/2 cents. These receipts
will go into the highway
trust fund and preserve the
pay-as-we-go principle, so
that contributions from general tax funds to build Fed-
eral-aid highways will not be
necessary.
At the same time, to help
defray the rising costs of operating the Federal airways,
receipts from excises on aviation gasoline should be retained in general budget
receipts rather than transferred to the highway trust
fund. The estimates of
receipts from excise taxes also
reflect a proposal to have
users of the Federal airways
pay a greater share of costs
through increased rates on
aviation gasoline and a new
tax on j et fuels. These taxes,
like the highway gasoline
tax, should be 4% cents per
gallon. I believe it fair and
sound that such taxes be
reflected in the rates of transportation paid by the passengers and shippers.
Revenues.—The
e s t i m a t e of
$77.1 billion in receipts for
1960 is contingent on enactment of the tax recommendations mentioned earlier. Of
this estimate, approximately
BUDGET RECEIPTS
[Fiscal years. In billions]
Individual incomc taxes
Corporation income taxes
Excise taxes
All other receipts
Total
14
1958 actual
1959 estimate
1960 estimate
$34.7
20.1
8.6
5.7
$36.9
17.0
8.5
5.6
$40.7
21.5
8.9
6.0
69.1
68.0
77.1
In the 1960 Budget:
V.
L E G I S L A T I V E P R O P O S A L S TO A D A P T
CHANGED
PROGRAMS
TO
CIRCUMSTANCES
ENCOURAGE MORE PRIVATE FINANCING FOR CREDIT PROGRAMS THROUGH
FLEXIBLE INTEREST RATES AND OTHER CHANGES:
1.
2.
3.
4.
5.
Veterans' housing loans.
Rental, military, and cooperative housing mortgages.
Rural electrification and telephone loans.
College housing loans.
Maritime mortgages.
AUTHORIZE SALE OF PROPERTY:
6. Surplus military and other real property.
7. Alaska communications system and related facilities.
R E V I E W AND REVISE OPERATING AND BENEFIT STANDARDS:
8.
9.
10.
11.
Foreign bidding on certain military contracts.
Agricultural conservation program.
Military service credits for railroad retirement.
Veterans' pension and other programs.
EXPAND NON-FEDERAL PARTICIPATION:
12.
13.
14.
15.
16.
17.
18.
Urban renewal.
Flood control.
School aid in federally affected areas.
Waste treatment construction grants.
Vocational education grants.
Public assistance.
Feed and seed assistance in disaster areas.
$76.5 billion reflects the increases in receipts under present tax rates and present tax
sources while $0.6 billion is
from new taxes and increased
nontax sources.
The anticipated rate of recovery of revenues in fiscal
1960 may be compared with
the experience of the fiscal
years 1955 and 1956, which
reflect the recovery from the
recession of the calendar year
1954. After adjusting for
comparability in corporate
tax payment dates, the increase in revenues from 1955
to 1956 was more than the
increase estimated in this
budget. With similar forces
of economic recovery at work
today, I have confidence that
our revenue estimate is sound
and will be attained.
15
1960 Estimated Receipts and
I 9 6 0 Estimated Receipts - $77.1 billion
Expenditures
1960 Estimated Expenditures - $77.0 billion
45.8 Major National Security
I 8.1 Interest
6.0 Agriculture
5.1 Veterans
4. 1 Labor and Welfare
2.3 Commerce and Housing
2. f International
1,7
6.0 All Other Receipts
Natural Resources
1.7 General Government
.1 Allowance for Contingencies
16
Part 2 Budget Information by Function
The bulk of the President's budget
message following the excerpts already presented consists of a discussion of his policies and recommendations for each of nine major
functions of Government.
Part 2 of this booklet summarizes
this discussion and provides data
on budget expenditures and new
obligational authority for each of
these functions.
The charts in this section show the
I960 estimates of expenditures for
programs within each major function. Budget expenditures for these
same programs over an 8-year period
are shown on pages 56 and 57.
492367 0—59
3
17
Major National
$45,805 million
.
Security
.
.
59.5% of 1960 budget expenditures
The major national security programs for the fiscal year I960 reflect
the growing armed strength of the
United States and its allies and the
continuing modernization of defense
methods.
The Department of Defense, by
concentrating efforts on the more advanced and more promising weapons
systems, continues to increase substantially the combat capabilities
of the military forces with a relatively small increase in the overall
cost of defense. The Department
will spend $40.9 billion in I960
in support of (1) the strategic
forces, including 43 wings in the
Strategic Air Command, the new
Atlas missiles, and the first submarine capable of firing the Polaris
ballistic missile; ( 2 ) the air defense
forces, including the forward warning line and over 70 Army groundto-air missile battalions; ( 3 ) the sea
control forces, including 389 warships with both conventional and
atomic firepower; and ( 4 ) the tactical forces, including 14 Army and
3 Marine divisions and 34 Air
Force and 3 Marine tactical air
wings.
Missile systems in 1960 will take
a larger share of total procurement
expenditures and aircraft will take
less. Ships and other weapons and
equipment will take about the same
amount as in 1959.
The number of active-duty military personnel at the end of I960
will be 2,520,000, about the same as
planned for the end of 1959. This
18
force, however, will have significantly greater combat power as new
weapons continue to come into use.
The budget proposes the extension
of the military draft and other legislation necessary to maintain present
personnel levels.
Expenditures for operation and
maintenance are expected to be
relatively unchanged. Savings are
expected from tighter operating
schedules and smaller numbers of
aircraft and ships to be supported.
However, the average costs of operating and maintaining each weapon
and unit of equipment will be higher
because they are more complex.
Research, development, test, and
evaluation expenditures continue to
increase, with the largest amounts
being devoted to new missile
systems and supersonic aircraft.
Increased emphasis will also be
given to antisubmarine warfare
and the use of military satellites
for navigation and communication
purposes.
[In millions]
Fiscal year
I960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$45, 805
46,120
44,142
43, 270
40, 641
40,626
46,904
50,363
New obligational
authority
$45, 222
45,704
40, 448
40, 234
35, 903
33, 656
38, 901
57, 298
Major National
Budget
Expenditures
in 1960 -
Security
Estimate
$ MILLIONS
Department of Defense
Purchase of Aircraft, Missiles, Ships, and Other Military
Equipment
Regular, Reserve, and Retired Military Personnel
10,385
Operation and Maintenance of Equipment and Facilities
3,384
Research, Development, Test, and Evaluation of Military Equipment
1,304
itary Construction and O t h e r *
2,745
M u t u a l Security P r o g r a m - M i l i t a r y Assistance
1,850
Stockpiling and Defense Production
| 265
* After deducting $405 million net receipts of revolving funds
Construction expenditures will
provide for additional missile sites
and control centers, continued work
on the ballistic missile early warning system, and repair and modernization of existing facilities.
The increasing expenditures of
the Atomic Energy Commission
will support continued development and production of weapons to
meet a variety of military needs,
further development of military
propulsion and civilian power reactors, and basic research in the
physical and life sciences.
Progress by our allies in equipping their armed forces, and deliveries under military assistance in
1959 and prior years, permit a reduction in 1960 in military assistance
expenditures under the mutual
security program.
Estimated expenditures for stockpiling strategic materials and for
expansion of defense production
are smaller than in 1959 because
most stockpile objectives have been
met and deliveries under prior contracts to encourage expanded production of defense materials are
declining.
19
International
Affairs and Finance
$2,129 million . . . 2.8% of 1960 budget expenditures
The United States is directing its
diplomacy and devoting a substantial share of its economic resources
to maintaining world peace and
the security of free nations. Total
expenditures estimated for international programs in 1960 are substantially less than the amount
estimated for 1959, mainly because
of a proposed additional and nonrecurring subscription to the International Monetary Fund which is
expected to take place in 1959.
The defense support portion of
the mutual security program helps
prevent deterioration of the living
conditions and the political stability of our allies among lessdeveloped countries, whose large
military forces would otherwise be
too great an economic burden.
Defense support takes the form of
food, textiles and other consumer
goods, m a c h i n e r y , and r a w
materials.
The Development Loan Fund,
established in 1957, provides capital
to less-developed countries on terms
more favorable than are normally
available from other sources, including repayment in foreign currencies. The Fund is now making
loans in substantial numbers, and
expenditures are estimated to increase considerably in 1960.
Through technical cooperation,
less-developed countries are aided
to acquire technical, administrative,
and managerial skills. The budget
provides for training more foreign
technicians, with emphasis on ex20
panding programs in Africa. It
also provides for the United States
share of expected larger contributions by member nations to the
United Nations special fund for
technical assistance projects.
Other amounts under the mutual
security program are for special
assistance needed for the stability
and progress of a number of countries not covered by other categories
of aid, for such programs as our
contributions to the United Nations
Children's Fund and care of refugees, and for contingencies and
emergencies. To help encourage
private United States investment
abroad, the President is requesting
legislation to expand the investment
guaranty program.
In other economic and technical
development programs, the United
States promotes trade and encourages the flow of private capital
to less-developed countries in several ways. The Export-Import
Bank is actively seeking more
private participation in its loans
[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$2,129
3,708
2,234
1, 976
1,846
2,181
1, 732
2,216
New obligational
authority
$2,809
7, 070
3, 983
2,240
2,123
2, 304
1,838
2,149
International
Budget
Expenditures
Affairs and Finance
in
I960—Estimate
M u t u a l Security Program—Economic
t
MILLIONS
Defense Support
Development Loan Fund
Technical and O t h e r Assistance
O t h e r Economic and
an. Technical Development
120
Conduct of Foreign A f f a i r s
216
Foreign Information and Exchange Activities
145
and is selling part of its portfolio
to private investors. The Bank
expects to cover its estimated 1960
disbursements entirely from receipts.
In 1959, the United States expects to increase its subscriptions to
the International Bank for Reconstruction and Development and to
the International Monetary Fund.
The Bank channels private capital
into public loans to less developed
countries. The Fund promotes
sound foreign exchange policies
and trade by assisting countries to
overcome short-term foreign exchange problems.
Within the total for the conduct
of foreign affairs, the Department
of State plans to open several new
diplomatic and consular posts in
1960. It also plans to increase its
staff dealing with problems of
Eastern Europe and international
communism.
Information about the United
States is given to other countries
by the United States Information
Agency through radio, motion
pictures, libraries, and publications. In 1960, work will continue on a major rebuilding of the
radio facilities of the Voice of
America.
21
Commerce and Housing
$2,243 million . . . 2.9% of 1960 budget expenditures
Expenditures for commerce and
housing programs are expected to
decline $1.3 billion from 1959 to
I960. The estimated reduction
occurs primarily in the Federal
National Mortgage Association and
the Post Office.
The new National Aeronautics
and Space Administration will expand investigations of space and
the development of satellites and
more powerful rocket engines.
Construction and operating expenditures for the Federal airways system, administered by the recently
created Federal Aviation Agency,
are increasing. Air traffic control
activities, both civil and military,
are now being combined into a
single system under this Agency to
provide greater safety and efficiency.
The President is proposing legislation to increase the tax on
aviation gasoline and impose a tax
on jet fuels to help pay for the rising
cost of the Federal airways. He
is also proposing legislation to continue the airport grant program
with Federal participation being
gradually reduced.
Water transportation expendir
tures include funds for modernizing
Coast Guard facilities and for
operating and construction subsidies for merchant ships. As a
part of a comprehensive study of
transportation being made by the
Secretary of Commerce, a review
will be made of our national maritime policies, which were laid
22
down 23 years ago and require
reappraisal.
The Federal National Mortgage
Association is expected to hold its
1960 expenditures within receipts.
To do this without diverting new
funds from the mortgage market,
it will offer Government-owned
mortgages to investors in exchange
for certain Government bonds
which will then be retired. To
meet college housing needs, direct
Government loans will gradually
be replaced by other means of
financing. Legislation is recommended to broaden the authority of
the Federal Housing Administration and to remove the maximum
limitation on the total amount of
insurance it may provide.
About 650 urban renewal projects
receiving major Federal assistance
are now underway or completed in
more than 380 cities. Legislation
is recommended to assure Federal
support through 1965, increasing
[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$2,243
3,509
2,109
1, 455
2,030
1,504
817
2,504
New obligational
authority
$2,880
3, 210
5,863
3, 855
4,528
2,817
2,376
3, 488
Commerce and Housing
Budget
Expenditures
in 1960 — Estimate
the State and local share of net
project costs from one-third to onehalf by 1963 in recognition of the
predominantly local benefits received. Other housing expenditures p r o v i d e direct l o a n s for
veterans and help local authorities
to finance low-rent public housing.
In 1960 the Small Business Administration expects to make loans
to State and local development
corporations and small business investment companies under its new
authority, and to expand its existing business loan programs. Legislation is recommended to aid areas
which have persistent and serious
unemployment.
Consistent with the principle
established in the Postal Policy Act
of 1958 that postal rates should be
adequate to cover all post office
operating costs except for certain
subsidized public services, postal
rate revisions to provide at least
$350 million in new I960 revenues
will be proposed. The estimated
net expenditures for the postal
service reflect primarily the cost of
the subsidized public services.
In 1960 the Office of Civil and
Defense Mobilization will make
grants to States to share certain
civil defense costs and will continue
the program of public education
concerning fallout protection.
23
Agriculture and Agricultural
Resources
$5,996 million . . . 7.8% of 1960 budget expenditures
About 75% of 1960 expenditures
for agriculture and agricultural resources will be for farm price support operations of the Commodity
Credit Corporation and related programs to stabilize farm prices and
income.
Because of the technological revolution that is still increasing
productivity in agriculture, farmers
continue to produce more than can
be marketed at home and abroad.
Under our present price support
system, this excess production results in increased Federal outlays
for commodity loans and purchases
and increased carryover inventories.
Commodity inventories and outstanding crop loans of the Commodity Credit Corporation are expected to total nearly $10.5 billion
at the end of fiscal year 1960. To
prevent continuation of huge Federal outlays, legislation w i l l be
proposed to make badly needed
changes in the price support system.
Expenditures under the conservation reserve portion of the soil bank
are estimated at $343 million, which
is $202 million more than the 1959
amount, because higher rental payments and the termination of the
acreage reserve are expected to result in many farmers placing more
land in the conservation reserve.
Cost-sharing payments to farmers
for conservation practices under the
24
agricultural conservation program
will amount to $197 million. The
President is recommending a reduction in the advance authorization
for this program to $100 million for
the 1960 crop year. This reduction
will not affect 1960 expenditures.
Other programs for the conservation of agricultural land and water
resources, which include the technical assistance program of the Soil
Conservation Service, the watershed protection program, and the
Great Plains program, will entail
expenditures of $135 million.
Funds available from the appropriation for 1959 will permit starting
60 new watershed protection projects in 1959 and 40 more in I960.
Expenditures of the Rural Electrification Administration are expected to increase somewhat in
1960. Today, over 95% of Ameri[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$5, 996
6,775
4, 389
4, 526
4,868
4, 389
2,557
2,936
New obligational
authority
$5,065
5, 414
6,257
5,275
3, 310
2,672
4,010
1, 333
Agriculture and Agricultural
Budget
Expenditures
Resources
in 1960 — Estimate
can farms have central station
electric service, compared with 11%
in 1935- Rural industrial and nonfarm residential consumers now
account for about one-half of total
power sales by the REA system, and
are increasing their power consumption much faster than are farm
consumers. The President is again
recommending legislation to assist
electric and telephone borrowers to
obtain f i n a n c i n g from private
sources.
The budget proposes a reduction
in the direct loan programs of the
Farmers' Home Administration.
Actions by the Secretary of Agriculture raising the interest rate to
be paid on insured loans are expected to attract additional private
credit in the financing of farm
ownership and soil and water conservation loans.
Research, education, and other
agricultural services will be carried
forward in I960 at about the current
level. Research to increase industrial uses of agricultural commodities will be strengthened through
the use of foreign currencies obtained from the sale of farm commodities abroad.
25
Natural
Resources
$1,710 million
.
.
.
2.2% of 1960 budget expenditures
In 1958 the rates of construction
were accelerated for many resource
development projects to aid in
economic recovery. These higher
rates have continued, and expenditures for natural resources programs
are expected to reach an all-time
high in 1959, and remain at about
that level in 1960. In view of this
record program and the large
amounts required in later years for
completion of projects underway,
no funds are provided in the 1960
budget for starting construction
of new water resources projects.
Further, the budget contemplates
stretching out construction on some
projects underway.
About two-thirds of budget expenditures for natural resources
will be for the development of
water resources. Flood control,
navigation, irrigation, and related
activities of the Corps of Engineers
and the Bureau of Reclamation are
expected to require expenditures of
about $1.1 billion in I960. This
total is higher than in any previous
year.
In the interest of sound water
resources programs in future years,
funds are included in the budget
to continue investigation and advance planning and to assemble
basic data for future projects.
Research will also continue on processes for converting sea water and
brackish water to fresh water.
26
Federal agencies responsible for
flood protection works operate
under inconsistent standards governing the sharing of costs w i t h
local beneficiaries. Accordingly,
legislation will be proposed to set
a uniform basis of cost sharing for
projects not yet under construction
which will produce benefits to local
areas.
The President is again urging the
Congress to authorize the sale of
revenue bonds by the Tennessee
Valley Authority in order to provide the Authority with greater
flexibility in meeting its needs for
new power generating facilities.
Expenditures for conserving and
developing the resources of the
national forests, public domain
lands, and the Indian lands will be
$279 million in I960. The Bureau
of Land Management will administer 475 million acres of public
[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$1, 7 1 0
1,708
1, 543
1, 296
1,104
1,202
1, 315
1, 476
New obligational
authority
$1, 744
1,943
1, 456
1, 355
1, 213
1, 070
1, 398
1, 503
Natural
Budget
Expenditures
Resources
in 1960 — Estimate
lands, including about 300 million
acres in Alaska. Scheduled construction on Indian reservations
will provide roads, irrigation and
water systems, schools, and other
facilities.
The budget provides for the continued improvement of our national
parks and development of the
national forests for recreational use.
Expenditures by the National Park
Service will provide for the construction of roads and facilities to
meet the needs of 65 million visitors
estimated for fiscal year I960.
The Bureau of Mines will continue its programs directed toward
improvement of mining techniques
and better utilization of mineral
supplies. The President is recommending legislation to conserve
the Nation's vital helium resources.
The Fish and Wildlife Service
will operate and maintain 91 fish
cultural stations and administer
18 million acres in wildlife refuges
in 1960. Lands for additional
wildlife areas will be acquired.
27
Labor and Welfare
$ 4 , 1 2 9 million . . . 5 . 4 % of 1 9 6 0 b u d g e t e x p e n d i t u r e s
Within the labor and welfare
area, significant increases are provided in 1960 for the new defense
education program and for higher
public assistance grants. Total expenditures are expected to be $682
million more than in 1958, but
$251 million less than estimated for
1959, chiefly because the antirecession legislation for temporary unemployment compensation payments expires in 1959.
The rise in Federal grants to the
States for public assistance results
from legislation enacted in the last
Congress increasing the Federal
share. In I960, the Federal Government will contribute over 57%
of total payments to an average of
5.7 million recipients per month,
and in many cases will contribute
as much as 80%. In view of the
growth of the Federal old-age, survivors, and disability insurance and
the primary responsibility of State
and local governments for the economic security needs not met by
social insurance, recommendations
are being developed to increase
State and local participation in the
cost of public assistance starting
in 1961.
Expenditures for health programs
in I960 are expected to be more
than double the amount 5 years
earlier. Outlays by the National
Institutes of Health for medical
research and training will be more
than 3 times the amount 5 years
28
ago. Expenditures for hospital
construction, waste treatment facilities, and medical and dental research facilities will total somewhat more in I960 than in 1959.
A large increase is proposed in
1960 for the new defense education
program, which includes ( 1 ) repayable contributions to loan funds for
college students and ( 2 ) grants to
States over a 4-year period to help
pay for laboratory equipment and
for testing and counseling high
school students. The National
Science Foundation will continue
to provide fellowships for capable
science students and grants to institutions of higher learning to improve science instruction. In I960,
28,000 teachers will have the opportunity to attend institutes providing
supplementary training in science.
The Federal Government provides aid to schools in communities
where large numbers of children of
persons engaged in Federal activi[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$4,129
4,380
3, 447
3,022
2,821
2,575
2,485
2,426
New obligational
authority
$4,196
4,158
4,161
3,212
2,860
2,614
2,429
2,456
Labor and Welfare =
Budget
Expenditures
in 1960 — Estimate
Promotion of Science, Research, Libraries, and Museums
School Lunch, Vocational Rehabilitation, and O t h e r
ties impose a burden on local school
districts. Legislation is being proposed to assure greater and more
equitable local responsibility in the
future for the cost of educating
children of those Federal personnel
who pay taxes directly or indirectly
for the support of public schools.
Federal grants for administration
of the State employment service and
unemployment insurance offices,
which account for most of the expenditures for labor and manpower
in 1960, are expected to rise somewhat over 1959. In a special message on labor affairs, the President
is proposing measures to strengthen
492367 0—59
4
requirements for the conduct of
labor union affairs, and increase
protection in labor-management
relations. Improvements are also
proposed in the minimum wage
and 8-hour laws, and in the unemployment compensation system.
Grants in 1960 by the National
Science Foundation in support of
basic research will be more than
double the 1958 amount. The
budget contains a major increase
for the 18th decennial census.
Expenditures for vocational rehabilitation will increase in I960.
Services will be provided to an estimated 314,000 disabled persons.
29
Veterans' Services and Benefits
$5,088 million . . . 6.6% of 1960 budget expenditures
The upward trend of expenditures
for veterans' programs is expected
to halt temporarily in fiscal 1960
mainly because a decline in readjustment benefits offsets rising
expenditures for other programs.
Although estimated total expenditures for veterans in I960 are $110
million less than in 1959, they are
$62 million more than in 1958.
Some of our national policies and
legislation governing veterans' programs need reconsideration, particularly those relating to benefits
provided for disability or deaths
not related to military service.
Compensation benefits will be
paid to over 2.4 million individuals
and families in I960 for death or
disability resulting from military
service. Expenditures have increased in the last several years
because higher benefit rates were
enacted, but are expected to decrease somewhat in 1960 as the
number of beneficiaries declines.
The Veterans Administrator will
expedite and broaden the work
underway in the Veterans Administration on revising standards for
rating of disabilities. For some of
the seriously disabled veterans, increases in compensation rates are
warranted.
30
It is expected that pensions will
be paid to over 1.4 million individuals and families in 1960, and will
total $68 million more than in 1959.
Legislation will be proposed to provide more equitable treatment of
needy veterans and to modernize
the veterans' pension program in
the light of social developments
and changes.
The budget includes $891 million
of- expenditures for hospital and
domiciliary care for an average of
140,800 veterans per day, and for
more than 2 million outpatient
medical treatments or examinations. In addition, expenditures
of $55 million are estimated for
construction and modernization of
veterans' hospitals and homes.
[In millions]
Fiscal year
I960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$5, 088
5,198
5, 026
4, 793
4,756
4, 457
4, 256
4, 298
New obligational
authority
$5,054
5,125
5, 071
4, 870
4, 823
4, 369
4,272
4,132
Veterans' Services and Benefits
Budget
Expenditures
in 1960 — Estimate
Total expenditures for readjustment benefits continue to decline as
the veterans of recent conflicts
become reestablished in civilian
life. In 1960 education and training will be provided to 360,000
veterans of the Korean conflict and
to a small number of World War II
veterans. The number of loans
guaranteed by the Veterans Ad-
ministration is expected to increase
in 1960, primarily because of proposed legislation for encouraging
private financing rather than direct
Federal loans.
Administrative expenditures associated with veterans' programs
will be lower in 1960 than in 1959
because of declining workloads and
increasing efficiency.
31
Interest
$ 8 , 0 9 6 m i l l i o n . . . 10.5%
of 1960 b u d g e t e x p e n d i t u r e s
Interest payments by the Federal
Government are almost all for
interest on the public debt. A
relatively minor proportion is required for interest on refunds of
taxes and for interest on uninvested
funds held by the Treasury.
Interest payments on the public
debt are expected to be $500 million
more in 1960 than in 1959. The
amount of annual interest depends
on the size and composition of the
debt and on the interest rates paid
on Government securities. It is
anticipated that the public debt
will reach $285 billion by the end
of the fiscal year 1959, but on the
basis of the balanced budget presented by the President, will be
no higher at the end of 1960, although it will temporarily reach a
higher level during the year.
The rise in market rates since the
spring of 1958 requires the Treasury
to pay higher interest on securities
issued to refinance the heavy volume
of maturing Government obligations, a large part of which were
issued when interest rates were
lower.
Interest payments on marketable
obligations, mainly held by financial institutions, are almost two-
32
thirds of all interest payments.
The estimated increase of $500
million in total expenditures for interest on the public debt occurs on
these obligations.
United States savings bonds bear
an interest rate that is higher than
the average rate usually paid on
the total public debt and carry
favorable redemption privileges.
Over one-sixth of the interest on
the public debt is payable to the
investors who hold these bonds,
mostly individuals.
Special issues of nonmarketable
securities are owned by Government trust funds and certain Government corporations which invest
their reserves against future needs.
The interest rate on a large portion
[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$8, 096
7, 601
7, 689
7, 308
6,846
6, 438
6, 470
6, 583
Interest
Budget
=====
Expenditures
in I960 — Estimate
$ MILLIONS
Interest on Public Debt
/
I
H
H
-
B B B B
•
Marketable Obligations
<
i n n i
1 , 4 0 0
Savings Bonds
1200
Special Issues
\
Other Nonmarketable Issues
b
Interest on Refunds and Uninvested Funds
of these issues is the average rate
for longer term marketable securities. For a few special issues the
rates are specified by law.
Expenditures for interest have
been authorized by permanent law,
and annual appropriations are not
required.
33
General Government
$1,735 million . . . 2.2% of 1960 budget expenditures
Expenditures for general government activities consist mainly of
payments for central administrative
and construction costs not allocated
among the other major activities
of the Government.
Management of the Government's finances is largely carried
out by the Treasury Department,
which collects taxes and customs
duties, manages the public debt,
and writes checks to pay the bills
of most Government agencies.
Other major tasks of the Department include selling bonds, minting coins, and engraving currency.
During the fiscal year I960, the
Internal Revenue Service expects
to handle 96 million tax returns
from individuals and corporations.
For some work, such as issuing
checks and recording sales and
redemptions of savings bonds, improved electronic equipment will
make possible the handling of
higher workloads without additional costs. Auditing by the General Accounting Office is another
important part of financial management.
The property and records management function of the Government is performed mainly by the
General Services Administration,
which provides office space for
most Federal civil agencies, handles
central purchasing, and maintains
Government records and archives.
Initiation of new construction is
34
being deferred in 1960, and no
funds are included in the budget
for starting new general office buildings. However, expenditures on
those already started will increase
sharply.
Expenditures of the Federal
Bureau of Investigation are estimated to rise in 1960 to finance
additional staff required for an increasing number of criminal and
other investigations. Staff increases are also provided for the
Immigration and Naturalization
Service to handle the growing
workloads brought about by the
rapid increase in i n t e r n a t i o n a l
travel and by recent amendments
to the immigration laws.
The Civil Service Commission
supervises the operation of the
merit system for Federal employment and administers the civil
service retirement system. Other
central personnel
costs,
paid
through the Department of Labor,
[In millions]
Fiscal year
I960 est
1959 est
1958
1957
1956
1955
1954
1953
Budget
expenditures
$1, 735
1,673
1, 356
1, 787
1, 627
1,199
1,235
1,472
New obligational
authority
$1, 617
1, 799
1, 417
1, 831
1, 593
1,136
1,071
1, 366
General Government
Budget
Expenditures
in I960— Estimate
District of Columbia, Territories, and Possessions
W e a t h e r Bureau and Other
include accident compensation
benefits and unemployment compensation for Federal employees.
Since October 28, 1958, unemployment compensation has also been
provided for ex-servicemen whose
military service is in peacetime.
Changes in legislation required
by the admission of Alaska into
the Union will be proposed. To
facilitate transfer to the new State
of responsibility for special programs now administered by the
Federal Government, a 5-year program of transitional grants to
Alaska is proposed.
35
Expenditures and New Obligational Authority by
Agency
[Fiscal year 1960 estimate. In millions]
Description
Legislative branch
The judiciary
Executive Office of the President
Funds appropriated to the President:
Mutual security
Other
Independent offices:
Atomic Energy Commission
Export-Import Bank
Federal Aviation Agency
National Aeronautics and Space
Administration
National Science Foundation
Small Business Administration
Tennessee Valley Authority
United States Information A g e n c y . . .
Veterans Administration
Other
General Services Administration
Housing and Home Finance A g e n c y . . .
Department of Agriculture
Department of Commerce
Department of Defense:
Military functions
Civil functions
Department of Health, Education, and
Welfare
Department of the Interior
Department of Justice
Department of Labor
Post Office Department
Department of State
Treasury Department
District of Columbia
Allowance for contingencies
Total
Gross expenditures
Receipts
Budget exfrom
penditures
operations»
$152
51
76
$1
$152
51
75
$110
51
97
3,514
281
16
34
3, 498
247
3, 930
19
2,745
-6
560
2,772
860
485
160
206
15
127
5,185
269
258
408
5, 514
559
2,745
854
560
(2)
New obligational
authority
602
280
140
305
315
120
5,330
325
416
2,360
8,506
485
136
290
6
162
76
5
2,043
2,056
9
280
140
168
25
114
5, 168
249
411
318
6,450
476
41,008
955
63
102
40, 945
853
40, 850
902
3,144
805
259
568
4,137
243
8,904
42
100
4
48
3,140
757
259
562
109
243
8,900
42
100
3,176
745
275
570
172
238
8,916
70
125
77, 030
76, 807
86, 979
5
4,028
4
9,949
1 Include only amounts available by law for use by the agencies and exclude substantial amounts
paid directly into the Treasury as miscellaneous receipts.
2 Less than one-half million dollars.
36
Part 3
The Federal Budget Process
and Financial
System
The Government's program for the
next fiscal year has been presented in
part 2 largely in terms of expenditures. For any given year, however,
the amounts of expenditures for
various purposes are not necessarily
the same as the amounts of financial
authorizations proposed in the
budget or provided by the Congress.
Part 3 of this booklet summarizes
the budget process, explaining the
relationship of expenditures to authorizations and describing other
key aspects of the Federal financial
system. It provides background information which will aid in understanding the other parts of this
booklet.
37
The Federal Budget Process
and Financial
The basis for budget control; New
obligational authority.—Each January the President presents to the
Congress a budget representing his
best judgment as to the kind and
size of Government programs required to meet our national needs
during the coming fiscal year
(which runs from July 1 to the
following June 30, and is designated
by the year in which it ends).
Since no Federal funds can be
spent without specific authority
from the Congress, the budget also
contains the President's recommendations as to the amounts of
financial authority necessary to
carry out the planned programs.
As circumstances change, the President may amend his requests in
supplementary messages to the
Congress.
Congressional action on the
budget consists of action upon
these requests for financial authority. The Congress may accept
some and increase, decrease, or
reject others. It may also include
new proposals of its own.
Financial authority can be requested by the President and enacted by the Congress in three
forms. The most common is an
appropriation, which authorizes
the agencies not only to order goods
and services but also to draw funds
from the Treasury and make expenditures to pay for the goods
and services when delivered. Occasionally agencies are given au-
38
System
thorizations (contract authorizations) which allow them to contract for the delivery of goods and
services but not to make expenditures to pay for them. An appropriation must later be enacted by
the Congress before money may
actually be spent to pay the bills
incurred under a contract authorization. Under the third form,
(authorizations to expend from
debt receipts), agencies may be
authorized to borrow money (usually through the Treasury) and to
spend it. These three kinds of
authority to incur obligations for
the payment of money are all called
new obligational authority.
In most cases, new obligational
authority becomes available only
as the Congress votes it each year.
In some cases, however, the Congress has voted permanent authority under which additional
sums become available annually
without further action by the Congress. The chief example is the
permanent appropriation to pay
interest on the public debt.
Budget expenditures.—Generally
speaking, budget expenditures consist of checks issued and cash
payments made from budget accounts for any purpose except
retirement of debt. Funds held in
trust are not part of the budget
accounts and disbursements of such
funds are thus not budget expenditures. Budget expenditures ordi-
Five Steps in Spending
THE
PRESIDENT proposes a budget
THE
CONGRESS appropriates (new authority
to incur obligations)
FEDERAL
AGENCIES make contracts and incur
other financial obligations
CONTRACTORS produce goods and services,
people apply for benefits
THE TREASURY collects taxes and pays the bills
narily are on a net basis in that the
d i s b u r s e m e n t s of G o v e r n m e n t
agencies (such as the Post Office)
which use their receipts in carrying
on business type operations w i t h
the public are included in the budget
after such receipts are deducted
from total disbursements.
Although budget expenditures
are normally reported as such when
the payment is made, a major
exception is interest on the public
debt, which is reported as an
expenditure when the interest becomes due rather than when it is
paid.
Not all of the obligational authority enacted for a fiscal year is
spent in the same year. Appropriations to pay salaries or pen-
sions are usually spent almost
entirely in the year for which they
are enacted. On the other hand,
appropriations to buy guided missiles or to construct an airfield may
not be fully spent for 2 or 3 or more
years because of the time required
to prepare designs, arrange contracts, complete production or construction, and finally pay the bills.
Therefore, when the Congress
changes the new obligational authority requested by the President,
it does not necessarily change the
budget expenditures of that year
by the amount of the increase or
decrease. Such a ch ange may spread
its total effect on expenditures over
a period of several years.
39
Unexpended
balances.—The
amounts of enacted authority that
have not yet been spent and are
still available for expenditure at
the end of a fiscal year are called
unexpended balances. These balances do not represent cash on
hand, but only authority to draw
on the Treasury in order to pay
bills. Most of the unexpended
balances are obligated; that is, the
amounts are committed to pay bills
which w i l l come due upon the completion of contracts already signed,
or which are owed by the Government for services or goods recently
received.
For many agencies, any authority which is not obligated by the
time the year closes is no longer
available; that is, the authority
expires. In some cases, such as
programs for construction of public
works, unexpended balances, even
though unobligated, continue
available from year to year. In a
few cases, such as the authorization
for the Treasury to lend money to
the Federal Deposit Insurance Corporation, the balances carried forward represent standby authority
for possible emergencies—authority
which the Government does not
anticipate having to use in the
foreseeable future.
Authorizations, Expenditures, Balances —1960 Estimate
Unexpended Balance
c a r r i e d into 1961
$149.6 billion
New Obligational
A u t h o r i t y for 1 9 6 0
Balance
brought i n t o I 9 6 0 ..
40
$71.7 billion
Budget receipts.—Budget receipts
represent amounts received by the
Treasury from taxes and customs
(less refunds of previous overpayments) and from miscellaneous
sources such as collections on certain loans, rents, fines, fees, and
sales. Budget receipts exclude
funds received in trust and money
obtained from borrowing.
The Congress establishes tax rates
and customs duties and sets forth
policies which govern the collection
of other receipts. The largest
source of budget receipts is income
taxes paid by individuals and corporations in all parts of the country;
exci&e taxes also yield substantial
revenues.
Budget surplus or deficit.—The
budget surplus or deficit is determined by the difference between
budget expenditures and budget receipts. A budget surplus results
when budget receipts exceed budget
expenditures (this situation is commonly referred to as a balanced
budget); a budget deficit results
when budget expenditures exceed
budget receipts.
A budget surplus is usually used
to retire part, of the Government's
debt. A budget deficit is normally
financed by borrowing.
Trust funds.—A s u b s t a n t i a l
amount of money is collected by
the Federal Government each year
which, by law, is not available for
general purposes of government but
must be held in trust for later payment to individuals or to State and
local governments only for the purposes specified in the law. Since
these trust funds are not available
for general purposes of government,
they are not included in budget
receipts and expenditures, and their
transactions do not affect the
budget surplus or deficit.
The largest trust funds are those
for social security and retirement
purposes and for Federal-aid highways. The social security and
retirement trust funds are financed
mainly from payroll taxes paid by
employers and employees; payments
from these funds are primarily for
benefits to the unemployed, the
retired, the disabled, or thesurvivors
of insured persons. Receipts of the
highway trust fund come from
excise taxes paid by highway
users; expenditures of the fund are
primarily grants to States to assist
in building the Federal-aid highway
systems.
Receipts from and payments to the
public.—Since trust fund and certain other transactions are not
included in the budget totals, a
consolidation of these and budget
accounts is necessary to show the
flow of money between the Government and the public. This consolidation of receipts from and
payments to the public provides
one measure of th6 impact of all
41
Government a c t i v i t i e s on the
economy.
In the consolidation, receipts paid
into trust funds are added to budget
receipts, and trust fund expenditures
to budget expenditures. In addition, the net expenditures of five
Government-sponsored a c t i v i t i e s
are included in the total of payments to the public. These are the
Federal Deposit Insurance Corporation, the Federal home loan banks,
the Federal land banks, the banks
for cooperatives, and the Federal
intermediate credit banks.
Financial transactions within the
Government as a whole, which are
recorded as expenditures in one
account and receipts in another, are
eliminated in this consolidation
since they involve no flow of cash
outside the Government. Certain
other transactions which are recorded as budget receipts or expenditures but do not involve a
cash flow are also eliminated. For
example, the interest due but not
yet paid on savings bonds is counted
as a budget expenditure, but it is
included in payments to the public
only when the cash is paid.
42
The Government's debt—Money
which has been borrowed by the
Treasury and not yet paid back is
called the public debt. Most borrowing is from the public, but the
Treasury also borrows from the
larger trust funds which have
authority to invest in Government
securities.
A few Government enterprises
borrow directly from the public.
These borrowings are not part of
the public debt. Some of this corporate debt is guaranteed by the
Government and some is not.
An increase in the amount of the
Government's debt may be required to finance a budget deficit
for the year or to provide additional
cash on hand as a working balance.
The amount of the debt may be
reduced when these situations are
reversed.
A debt limit, established by
statute, controls all but a minor
part of the public debt and all of the
Government-guaranteed debt of
Government enterprises. It is a
control over the total debt that can
be outstanding at any one time.
Part 4 Supplementary
Information
Part 4 of this booklet presents
summary data for certain Federal
activities, such as public works and
aid to State and local governments,
which are common to many of the
agencies and are parts of the functions discussed in part 2.
In addition, part 4 provides current information on aspects of the
Federal budget process and financial
system described in part 3, such as
the Federal trust funds and receipts
from and payments to the public,
and includes historical data on the
public debt and on budget receipts
and expenditures.
43
Federal Public Works
Direct Federal construction currently accounts for more than 6 %
of all new construction in the
United States. Another 7 % is
represented by State and local
public works which are constructed
with Federal aid totaling over 60%
of the construction costs.
The acceleration of various Federal civil public works programs in
1958 to help counteract the recession
has resulted in high construction
rates in 1959. In view of the current record volume of construction,
no funds are provided in the 1960
budget to start construction of
new projects for water resources
and for a number of other civil public works programs. Also, construction on some projects underw a y will be stretched out.
Nevertheless, total expenditures
for civil public works are expected
to be higher in 1960 than in any
prior year. The increase results
mainly from the expanding Federalaid highway program (financed
through a trust fund) and from commitments made for Federal projects
started in earlier years.
Construction of military facilities
by the Department of Defense constitutes the largest direct Federal
program. These facilities range
from individual structures, such as
armories and barracks, to multiple
structures required to support a
complete weapon system such as
an intercontinental ballistic missile.
A major portion of military construction in 1960 relates to missiles
and their support. The budget
BUDGET AND TRUST FUND EXPENDITURES FOR PUBLIC WORKS
[Fiscal years. In billions]
Actual
Program
Estimate
1953
1954
1955
1956
1957
1958
1959
I960
$1.4
$1.3
$1.0
$0.9
$1.1
$1.3
$1.6
$1.8
.7
.3
.7
.9
.2
1.0
.4
1.5
.5
2.4
.4
3.0
Total, civil public works. . . .
Military and related public w o r k s . .
Atomic energy plants and facilities.
2.2
1.9
1.1
1.6
1.7
1.1
1.7
1.6
.8
1.8
2.1
.2
2.2
2.0
.3
3.1
1.8
.2
4.5
2.0
.2
5.2
1.7
.3
Total, Federal public w o r k s . .
5.2
4.4
4.1
4.1
4.5
5.1
6.8
7.2
Civil public works:
Federal construction
Grants and net loans to State and
local governments
Highway trust fund grants
44
Federal Public Works
Budget
and Trust Fund Expenditures
in 1960 — Estimate
also provides for progress on early
warning systems and for the modernization of existing facilities.
The Atomic Energy Commission
will complete and put in operation
three high-energy particle acceler-
=
ators in 1960. Construction will
continue on experimental reactors
for power and propulsion, facilities
for the support of reactor development, research laboratories, and
production facilities.
45
Research and
Development
About half of the Nation's
expenditures foi research and development are financed by the Federal Government. Expenditures of
all Federal agencies for these purposes are estimated to rise to $5-5
billion in 1960. Of this total,
about $500 million is for basic
research.
More than one-half of total
Federal research and development
expenditures is spent under grants
and contracts, chiefly with private
industry and universities. The remainder is spent in Governmentoperated installations.
Expenditures for the conduct of
research and development account
for $5.1 billion of the 1960 total.
The remaining $0.4 billion will be
spent for research facilities.
The Department of Defense and
the Atomic Energy Commission
account for more than four-fifths
of the total Federal expenditures
for research and development.
A l t h o u g h c h i e f l y devoted to
strengthening national security, the
programs of these agencies also
contribute significantly to the Nation's technological advancement.
The Department of Defense in
1960 will expand work to improve
m i s s i l e s and o t h e r a d v a n c e d
weapons for strategic, tactical, and
defensive purposes. Estimated research and development expenditures by the Department exclude
about $2 billion of procurement
funds in support of research and
development.
46
The Atomic Energy Commission
will continue development of nuclear weapons and atomic reactors
for military propulsion and power,
increase development w o r k on
promising civilian power reactors,
conduct further investigations on
the possible use of nuclear explosions for peaceful purposes, and
support more research in the physical and life sciences.
The National Aeronautics and
Space Administration will substantially expand its research and
development program in 1960.
Most of the increases will be directed toward extensive scientific
investigations in space, the application of satellites to meteorology and
communication, the programs for
manned space flight, and the development of high thrust engines
for future space vehicles. In addiBUDGET EXPENDITURES FOR RESEARCH
AND DEVELOPMENT
[In millions]
Fiscal year
1960 est
1959 est
1958
1957
1956
1955
1954
1953
Total
Major
national
security 1
$5, 484
4,841
3, 498
3,027
2,538
2,085
2,085
2,100
$4, 572
4,108
2,988
2,596
2,202
1,804
1, 806
1,830
Other
$912
732
510
431
336
281
279
270
i Figures for the various years are not fully comparable because of changes in appropriation
structure.
Research and Development
Budget
Expenditures
in I960 - Estimate
$ MILLIONS
3,692
tion, research will be continued on
problems related to aircraft and
missiles.
Programs of the Department of
Health, Education, and Welfare,
chiefly the medical research activities conducted or sponsored by the
Public Health Service, will be at a
record level in 1960.
The Department of Agriculture
will strengthen research in foreign
countries to increase industrial uses
of agricultural commodities and
will continue emphasis on basic
research in the agricultural sciences.
Programs of the National Science
Foundation for the support of basic
research, for research laboratories
and other facilities, and for the
collection and dissemination of
scientific data will be expanded in
I960.
Research is also performed under
programs of all other departments
of the Federal Government, chiefly
Interior and Commerce, and by a
number of other independent agencies, particularly the recently established Federal Aviation Agency,
the Veterans Administration, and
the Office of Civil and Defense
Mobilization.
47
Federal Aid to State and Local Governments
Federal financial assistance to
State and local governments—
grants-in-aid, shared revenues, and
net loans—will be $7.1 billion in
1960. Over 95% of this assistance
is provided in the form of grants,
which usually require matching expenditures by the other levels of
government.
Although the number of aid programs is large, more than 70% of
total expenditures for aid to State
and local governments are for
highways and public assistance.
Increases in these two programs
are the main reasons for the increase
in expenditures in 1960 of $453
million over 1959.
The continued strength of our
Federal system depends upon the
States and local governments assuming greater fiscal and administrative responsibility for functions
they can perform well. To this
end, the President is again recommending enactment of proposals by
the Joint Federal-State Action Committee that the vocational education and waste treatment construction programs be transferred to the
States and that the Federal tax on
local telephone service be revised
effective July 1, 1960, to allow
limited credits for telephone taxes
paid to the States.
Legislation is also proposed to
increase State, local, or private responsibility for public assistance,
48
airport construction, urban renewal, college housing, schools in
areas with large Federal employment, and various other programs.
The proposed changes will take
effect in I960 in some programs and
later in others.
Grants of $401 million will be
made by the Department of Agriculture in I960 to schools, welfare
departments, and other public agencies, partly in the form of surplus
agricultural commodities.
Net expenditures for grants and
loans to provide low-rent public
housing, urban renewal projects,
college dormitories and other community facilities are estimated to
be $372 million, which is about the
same as in 1959.
NET BUDGET AND TRUST FUND EXPENDITURES FOR FEDERAL AID
[In millions]
Fiscal year Grants- Shared Loans
in-aid revenues
1960 e s t . . .
1959 e s t . . .
1958
1957
1956
1955
1954
1953
$6,852
6,266
4, 831
3,943
3,642
3,126
2,986
2,781
$119
106
101
96
82
78
66
51
$178
323
140
72
29
-80
-395
25
Total
$7,149
6, 695
5,072
4, 1 1 1
3, 753
3,124
2,657
2,857
NOTE.—The amounts discussed in this section
exclude the Government's costs for administering
Federal aid to States and localities. Therefore,
the figures differ somewhat from those cited elsewhere in this booklet.
Federal Aid to State and Local
Budget
and Trust Fund Expenditures
Governments
in I960 — Estimate
$ MILLIONS
: 3,015
Highway Construction
2,018
Unemployment Compensation and Employment Service
•
Budget Expenditures
% Trust Fund Expenditures
Health, Agriculture, Natural Resources, and O t h e r
Expenditures for aids to education and science are primarily for
grants to school districts affected
by Federal activities, the new programs for improving science, mathematics, and language training established under the National
Defense Education Act of 1958, and
vocational education grants.
Health, other agricultural, natural resources, and miscellaneous
other Federal-aid programs total
somewhat more in I960 than in
1959.
49
Federal Credit Programs
Government credit programs have
expanded greatly in the last quarter
century. New commitments for the
.fiscal year I960 are estimated to
total $27.5 billion. Nearly 80%
of these commitments will be for
guaranties of private loans, rather
than for direct Federal loans.
New guaranty programs and
and other assistance for private
financing are proposed for college
housing, nonresidential urban renewal projects, and rural electric
and telephone service. These will
carry further the Government's
policy of allowing maximum opportunity for private sources to supply
the credit needed by businesses and
individuals.
The net effect of the Government's credit activities on the
Federal budget is limited, even
though the effect on certain segments of the economy is great.
Guaranties usually require budget
expenditures only when loans are
defaulted, and most of the expenditures are recovered through later
sales of the defaulted properties.
Repayments of direct loans offset a
significant part of the disbursements for new loans. For these
reasons, estimated net budget expenditures in the fiscal year I960
of $629 million, while substantial
in themselves, are only a fraction
of new loan and loan guaranty
commitments.
50
In a number of important cases,
present legislation on programs for
making loans, purchasing mortgages, and insuring or guaranteeing
private loans sets inflexible and
uneconomic restrictions on interest
rates. This creates unneeded and
hidden subsidies and requires excessive use of Federal funds by discouraging private lending.
To correct this situation the President is recommending more adequate interest rates for several
insurance programs administered
by the Housing and Home Finance
Agency, for the guaranty and
direct loan programs of the Veterans Administration, for loans
made by the Rural Electrification
Administration in the Department
of Agriculture, for college housing
loans made by the Housing and
Home Finance Agency, and for ship
mortgage loans by the Maritime
Administration in the Department
of Commerce.
The adoption of these recommendations will encourage participation of private capital and will
reduce Government expenditures
significantly. At the same time,
Government guaranties or insurance will continue to permit
interest costs to borrowers more
favorable than the rates charged in
the open market for similar loans.
Nearly four-fifths of new credit
commitments in the coming fiscal
Federal Credit Programs
[In billions]
New commitments during
fiscal year
Fiscal year
Outstanding and committed
at end of fiscal year
Loans
Guaranties
Total
Loans
Guaranties
Total
1960 est
35.7
321.8
$27.5
32 7.7
368.6
396.4
1959 est
6.6
18.5
25.0
26.9
59.9
86.8
1958
5.3
12.3
17.6
23.0
51.0
74.1
1957
4.8
13.2
18.1
21.4
45.9
67.3
1956
2.5
15.9
18.4
19.2
43.8
63.0
1955
4.1
14.8
18.9
18.9
40.3
59.2
1954
4.1
11.8
15.9
17.8
35.5
53.3
5.3
10.6
15.9
19.1
30.9
50.0
1953
JMtHnHHRfnl mlmmM%mm
year are expected to be made for
housing. The Housing and Home
Finance Agency will make $13.6
billion of these commitments. The
Agency will insure loans to build or
buy private homes and will purchase housing mortgages insured or
guaranteed by Federal agencies.
Both direct loans and guaranties
will be extended for low-rent housing and urban renewal projects
undertaken by local governments
and for college dormitories.
The Veterans Administration will
guarantee an estimated $7.8 billion
in loans to help veterans buy and
improve homes. In addition, commitments of $179 million for direct
loans are estimated in areas where
guaranteed private funds are not
available.
The Department of Agriculture
will extend new credit amounting
to about $2.7 billion in the fiscal
year 1960. The largest part will be
for loans and guaranties to support
farm prices.
Other new Federal credit commitments amount to 12% of the 1960
total and include aid to various
types of businesses, such as small
businesses.
51
Trust Funds
The trust funds, which are outside the regular budget, are expected to collect $20.5 billion and
spend $20.3 billion in 1960. Since
1953, trust fund expenditures have
almost quadrupled and receipts
have more than doubled.
Payments under two of the three
social insurance programs authorized by the Social Security Act are
rising sharply. By the end of fiscal
year I960 monthly benefits are expected to be paid to 13.6 million
people from the old-age and survivors insurance fund and to 640,000
from the disability insurance fund.
Higher tax rates provided by the
last Congress for old-age and survivors insurance will reverse the
current excess of payments over
receipts, and the fund should again
start to build up reserves in 1961.
Although benefits were recently
added for wives and children of
disabled workers, the disability
fund will continue to accumulate
reserves in 1960.
Expenditures from the unemployment trust fund in 1960 are estimated to be 15% less than in 1959,
reflecting the continued improvement in the economy. Legislation
is being recommended to widen the
coverage of unemployment compensation.
Accumulated receipts from excise
taxes paid by highway users will be
sufficient to finance the grants made
to the States in 1959 for building
the Federal-aid highway systems.
52
However, in order to maintain the
fund on a self-supporting basis, a
temporary increase of 1 % cents in
the tax on motor fuels through 1964
is recommended. This increase
would also cover the cost of the
President's proposals that ( 1 ) forest
and public land highways, an integral part of the Federal-aid system, be financed from the trust fund
and (2) the receipts from aviation
gasoline taxes, which now go into
the trust fund, be retained in the
general fund.
The Civil Service and Foreign
Service retirement systems are expected to pay monthly retirement,
disability, and survivor benefits to
over 530,000 individuals at the end
of fiscal 1960. Beneficiaries of the
railroad retirement system on the
same date are estimated at around
760,000. Legislation is proposed
to increase tax rates and the amount
of wages covered by the railroad
retirement system. This will help
make the system actuarially sound
and more consistent with the oldage and survivors insurance system.
The excess of expenditures over
receipts in the category " a l l other
trust funds" is mainly due to the
secondary market operations of the
Federal National Mortgage Association. In these operations in
1960, the Association expects to
spend $485 million more for mortgage purchases and expenses than
it receives from repayments, sales,
and other income.
Trust Funds
Fiscal
Year
RECEIPTS AND EXPENDITURES=
I960-Estimate
% BILLIONS
10.6
Expenditures
O l d - A g e and Survivors Insurance
Social Security
m
Programs
Unemployment Insurance
Federal-aid
Highways
Federal Employees
Retirement
rri
1 rust
,
77
J
tunas
[In billions]
Railroad
Retirement
Veterans
Life Insurance
Fiscal year
Total
Total
receipts expenditures
1960 est
$20. 5
$20. 3
1959 est
17. 6
18. 9
1958
16. 3
16. 1
1957.
14. 4
13. 0
1956
11. 7
9.4
8. 5
1955
9. 5
A l l Other
1954
9. 2
7. 2
Trust Funds
1953
8. 9
5. 3
53
Receipts From and Payments to the Public
[Fiscal years. In millions]
Description
Budget receipts
Trust fund receipts
Deduct:
Intragovernmental transactions
Seigniorage on silver
Total receipts from the public
Budget expenditures
Trust fund expenditures
Government-sponsored enterprise expenditures (net)
Deduct:
Intragovernmental transactions
Excess of interest accruals over payments, etc
Total payments to the public
Excess of receipts over payments ( + )
Excess of payments over receipts ( — .
1959
estimate
$69,117
16, 329
$68,000
17, 585
$77, 100
20, 477
3, 493
59
3, 874
60
4, 015
60
81, 893
81, 651
93, 502
71, 936
16, 069
-629
80, 871
18, 884
887
77, 030
20, 259
112
3, 493
470
3, 874
1, 870
4, 015
510
83, 413
94, 899
92, 875
-1,520
- 1 3 , 248
1960
estimate
+626
.
Federal receipts from the public
are estimated to exceed payments
to the public by $0.6 billion, compared with an estimated excess of
payments of $13.2 billion in 1959.
Receipts are expected to rise to
$93.5 billion, which is $11.9 billion
higher than in the current fiscal
year. Payments are estimated at
$92.9 billion, a decrease of $2
billion from 1959. (For a description of Federal receipts from and
payments to the public, see page 41.)
54
1958
actual
The marked change from a large
excess of cash payments to the
public in 1959 to an excess of
receipts in 1960 reflects the economic recovery now in progress.
The improved budget outlook accounts for most of the change.
Another factor is the shift in the
trust funds from a total excess of
expenditures over receipts of $1.3
billion in 1959 to a net accumulation of $0.2 billion in 1960.
Historical
Comparisons
BUDGET RECEIPTS, 1951-1960
[Fiscal years. In millions of dollars]
Actual
Sourcc
1951
1952
1953
1954
Estimate
1955
1956
1957
1958
1959
1960
__ 21,643 27,913 30,108 29,542 28,747 32,188 35,620 34,724 36,900 40,700
Individual income taxes
Corporation income taxes
Excise taxes . _
.
All other receipts - . . .
14,106 21,225 21,238 21,101 17,861 20,880 21,167 20,074 17,000 21,448
8,648 8,851 9,868 9,945 9,131 9,929 9,055 8,612 8,467 8,945
3,171 3,402 3,610 4,067 4,650 5,169 5,187 5,708 5,633 6,007
47,568 61,391 64,825 64,655 60,390 68,165 71,029 69,117 68,000 77,100
Total
BUDGET EXPENDITURES, 1951-1960
[Fiscal years. In millions of dollars]
1951
Major national security
..
International affairs and finance
Commerce and housing..
Agriculture and agricultural resources..
.. .
Natural resources
_
Labor and welfare
Veterans' services and benefits._
Interest
General government . . .
..
Allowance for contingencies..
Adjustment to daily Treasury statement basis
Estimate
Actual
Function
1952
1953
1954
1955
1956
1957
1958
1959
1960
22,444 43,976 50,363 46,904 40,626 40,641 43,270 44,142 46,120 45,805
3,736 2,826 2,216 1,732 2,181 1,846 1,976 2,234 3,708 2,129
817 1,504 2,030 1,455 2,109 3,509 2,243
2,217 2,624 2,504
650
1,267
2,065
5,342
5,714
1,327
1,045
1,366
2,168
4,863
5,934
1,463
-705
-857
2,936
1,476
2,426
4,298
6,583
1,472
2,557
1,315
2,485
4,256
6,470
1,235
4,389
1,202
2,575
4,457
6,438
1,199
4,868
1,104
2,821
4,756
6,846
1,627
4,526
1,296
3,022
4,793
7,308
1,787
4,389
1,543
3,447
5,026
7,689
1,356
6,775
1,708
4,380
5,198
7,601
1,673
200
5,996
1,710
4,129
5,088
8,096
1,735
100
44,058 65,408 74,274 67,772 64,570 66,540 69,433 71,936 80,871 77,030
Total
UNEXPENDED BALANCES OF AUTHORITY CARRIED FORWARD
AT END OF YEAR
[Fiscal years. In billions of dollars]
From appropriations
.
—
From other authorizations:
Authorizations to spend from debt receipts
Contract authorizations...
Revolving and management funds
Total
Estimate
Actual
Description
-
1953
1954
1955
1956
1957
1958
1959
78.4
67.8
52.1
46.0
43.9
40.4
40.4
41.5
20.2
2.5
1.7
21.1
2.5
2.9
19.5
2.6
5.4
18.9
4.0
4. 1
20.2
1.1
3.7
25.4
1.5
4.8
26.0
1.6
4.8
23.5
1.7
5.0
102.8
94. 2
79.6
73.0
68.9
72.0
72.8
71.7
1960
55
BUDGET EXPENDITURES BY FUNCTION
[Fiscal years.
In million of dollars]
Actual
Description
1953
1954
1955
Estimate
1956
Major
national
security:
Department of Defense
4 3 , 6 1 1 4 0 , 3 3 6 35, 532 35, 791
Atomic energy
1, 651
1, 791
1, 895
1, 857
Mutual security program—military assistance
3, 954 3, 629 2, 292
2,611
Stockpiling and defense production
1,045
944
1,008
588
Total, major national security.
50, 363 46,904
International
affairs and
finance:
Mutual security program—economic:
Defense support
Development Loan Fund
Technical and other assistance
Other economic and technical development
Conduct of foreign affairs
Foreign information and exchange activities
Total, international
finance
affairs
Total, commerce and housing.
and
agricultural
Total, agriculture and agricultural
resources
43, 270 44, 142 46,
967
1,463
1, 184
1,143
235
286
464
406
456
874
2
548
258
150
257
130
34
121
25
120
86
157
485
176
106
91
100
133
149
2,216
1, 732
2,181
1,846
1,976
2,234
239
455
487
-111
659
65
709
275
370
-506
-330
312
64
631
253
349
211
-404
356
57
685
251
420
54
-83
463
101
824
295
365
49
59
518
86
85
404
392
357
115
674
86
81
2,504
817
1,504
2,030
1,455
2,109
2,125
320
1,689
253
3,486
291
3,900
305
3,430
375
3,151
448
239
109
142
217
256
142
204
236
173
217
231
215
267
227
227
297
239
255
2,936
2,557
4,389
4,868
4,526
4,389
1,191
1,009
887
743
861
1,064
150
30
38
34
34
164
33
37
38
35
167
35
37
43
34
198
44
38
45
35
225
59
62
51
38
249
69
59
60
43
1,476
1,315
1,202
1,104
1,296
1,543
Total, natural resources.
Net after rate revisions to be proposed.
2, 187
625
1,467
Natural
resources:
River basin development and power
Forests, public domain, and Indian
lands
National parks
Minerals
Fish and wildlife
General resource surveys and other
56
2, 352
490
39,062 40, *
2, 268 2, t
re-
sources:
Farm price support and related programs
Agricultural land and water resources...
Rural electrification and rural telephone
loans
Farm ownership and operation loans
Research and other agricultural services.
1
40,641
38,439
1,990
1958
and
Commerce
and
housing:
Aviation and space flight
Water transportation
Housing and community development..
General aids to business
Postal service
Civil defense and disaster aids
Regulation and other
Agriculture
40,626
1957
BUDGET EXPENDITURES BY FUNCTION—Continued
[Fiscal years. In million of dollars]
Actual
Description
1953
Labor and
1954
1955
,332
318
290
281
1,439
290
273
277
34
Estimate
1956
1957
1958
,428
275
324
328
1,457
351
279
475
1,558
469
290
400
1,797
546
315
458
33
53
56
71
72
171
173
165
202
235
259
2,426
2,485
2,575
2,821
3,022
3,447
1,713
660
757
1, 731
716
782
1, 830
727
1, 864
883
788
1, 876
951
801
2,024
1,036
856
659
546
664
767
774
699
138
102
269
158
100
223
150
57
229
123
105
226
126
47
218
168
43
200
4, 298
4,256
4,457
4, 756
4, 793
5,026
3, 30Q
1,678
1,044
482
3,101
1,667
1,128
487
3,127
1, 656
1,115
473
3, 659
1,635
1, 138
354
4,103
1, 582
1, 241
319
4,582
1, 526
1, 223
275
80
88
67
60
63
82
6, 583
6,470
6, 438
6,846
7,308
7,689
442
185
449
155
431
164
475
164
476
194
502
239
147
387
78
160
157
115
91
188
93
78
334
115
187
627
130
199
140
132
55
177
53
247
67
174
281
74
98
73
70
1,472
1, 235
1,199
1,627
1, 787
1,356
74, 274 67, 772 6 4 , 5 7 0 66, 540 69,433
71,936
welfare:
Public assistance (payments to States to
aid needy persons)
Promotion of public health.
Promotion of education
Labor and manpower services
Promotion of science, research, libraries,
and museums..
School lunch, vocational rehabilitation,
and other
Total, labor and welfare.
Veterarts' services and
benefits:
Compensation
Pensions
Hospitals and medical rare
Readjustment benefits for education
and training
Readjustment benefits for unemployment, loan guaranty, and other
Insurance and indemnities
Other services and administration
Total,
veterans'
benefits
services
800
and
Interest:
Interest on public debt:
Marketable obligations
Savings bonds
Special issues
Other nonmarketable issues
Interest on refunds and. uninvested
funds
Total, interest.
General
government:
Financial management
Property and records management- j
FBI, alien control, and related programs
Central personnel costs
Legislative and judicial functions
District of Columbia, territories, and
possessions
Weather Bureau and other.
Total, general government..
69
Allowance for contingencies
Total budget expenditures
57
BUDGET
TOTALS
AND
PUBLIC DEBT
SINCE
1900
[In millions of dollars]
Fiscal
year
Budget
Budget expendreceipts itures
Surplus
(+) or
deficit
(-)
Public
debt at
end of
year
Fiscal
year
Budget Surplus
Budget expend- (+) or
receipts itures
deficit
(-)
Public
debt at
end of
year
1900
1901
1902
1903
1904
567
588
562
562
541
521
525
485
517
584
+46
+63
+77
+45
-43
1,263
1,222
1,178
1,159
1,136
1930....
1931....
193 2
193 3
193 4
4,058
3,116
1,924
2,021
3,064
3,320
3,577
4,659
4,623
6,694
+738
-462
-2,735
-2,602
-3,630
16,185
16,801
19,487
22,539
27,053
1905
1906..
1907
1908
1909
544
595
666
602
604
567
570
579
659
694
-23
+25
+87
-57
-89
1,132
1,143
1,147
1,178
1,148
1935....
1936....
1937....
193 8
193 9
3,730
4,069
4,979
5,615
4,996
6,521
8,493
7,756
6,792
8,858
-2,791
-4,425
-2,777
-1,177
-3,862
28,701
33,779
36,425
37,165
40,440
1910
1911
1912...
1913
1914
676
702
693
714
725
694
691
690
715
725
-18
+ 11
+3
0)
(>)
1,147
1,154
1,194
1,193
1,188
194 0
1941...
1942...
1943...
194 4
5,144
7,103
12,555
21,987
43,635
9,062 - 3 , 9 1 8
13,262
-6,159
34,046 - 2 1 , 4 9 0
79,407 -57,420
95,059 -51,423
42,968
48,961
72,422
136,696
201,003
746
-63
713
+48
1,954
-853
-9,032
12,662
18,448 -13,363
1,191
1,225
2,976
12,455
25,485
194 5
194 6
194 7
194 8
1949
44,475
39,771
39,786
41,488
37,696
98,416 - 5 3 , 9 4 1
60,448 - 2 0 , 6 7 6
39,032
+754
33,069 +8,419
39,507 - 1 , 8 1 1
258,682
269,422
258,286
252,292
252,770
1915
1916
1917
1918
1919
683
762
1,100
3,630
5,085
1920
1921
1922
1923
1924
6,649
5,567
4,021
3,849
3,853
6,357
5,058
3,285
3,137
2,890
+291
+509
+736
+713
+963
24,299
23,977
22,963
22,350
21,251
1950...
1951...
1952...
1953...
1954...
36,495
47,568
61,391
64,825
64,655
39,617
44,058
65,408
74,274
67,772
-3,122
+3,510
-4,017
-9,449
-3,117
257,357
255,222
259,105
266,071
271,260
1925...
1926
1927
1928
1929
3,598
3,753
3,992
3,872
3,861
2,881
2,888
2,837
2,933
3,127
+717
+865
+ 1,155
+939
+734
20,516
19,643
18,512
17,604
16,931
1955...
195 6
195 7
195 8
1959 est
1960 est
60,390
68,165
71,029
69,117
68,000
77,100
64,570 - 4 , 1 8 0
66,540 +1,626
69,433 +1,596
71,936 - 2 , 8 1 9
80,871 - 1 2 , 8 7 1
77,030
+70
274,374
272,751
270,527
276,343
285,000
285,000
i Less than one-half million dollars.
NOTES.—Refunds of receipts are excluded from budget receipts and budget expenditures starting in 1913;
comparable data are not available for prior years.
The change in the public debt from year to year is not necessarily the same as the budget surplus or deficit,
as indicated on page 42.
58
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1959
For sale bv the Superintendent of Documents, U.S. Government Printing Office
Washington 25. D.C.—Price 25 cents
E X E C U T I V E
EXECUTIVE OFFICE OF THE PRESIDENT BUREAU OF THE BUDGET
B R A N C H
OF
THE
G O V E R N M E N T
THE
PRESIDENT
OF THE UNITED STATES
THE
WHITE HOUSE
OFFICE
KPT
OF HEALTH
EDUCATION'
AND
WELFARE
VETERANS
TRATION
3
'
™ABON
FEDERAL
NATIONAL
HOME L O A N
MEDIATION
,WL«OAO
TEMPORARY AGENCIES
BANK BOARD
JANUARY 1, 1959
@FedFRASER