Full text of Budget in Brief : Fiscal Year 1953
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FISCA L Y E A R 1953
EXECUTIVE OFFICE OF THE PRESIDENT
BUREAU OF THE BUDGET
THE BUDGET DOLLAR
it corner ptom...
'Wfane U yritl f t ...
fiscal Year 1983 Estimated
THE FEDERAL BUDGET
IN BRIEF
FISCAL YEAR 1953
(July 1, 1952-June 30, 1953)
T his B udget represents the program I am recom
m ending for prom oting peace and safeguarding
security.
In the current world crisis, the price of peace is
preparedness. In term s of the sacrifices which
this involves, it is a heavy price, but when freedom
is at stake, it is a price which all of us will gladly
pay.
H
T h e B udget M essage
Ja n u a ry 21, 1952
a r r y
S .
T
r u m a n
.
INTRODUCTION
E ach Ja n u a r y the President sends to the Congress the B u d get of the
U nited States, which contains his recom m endations for the financial p ro
gram of the G overnm ent in the com ing fiscal year— the year beginning the
following Ju ly 1.
In the B udget, the President estim ates how m uch m oney will be received
by the G overnm ent under existing tax laws and how m uch m oney will be
needed to carry out the G overn m en t’s activities.
T h e estim ated exp en d i
tures include the costs of new legislation which the President proposes.
T h e estim ates of receipts and expenditures which ap p e ar in the B u d get
are su bject to adju stm en t from the tim e they are subm itted in J a n u a r y until
the close of the fiscal year 18 m onths later.
tional Presidential recom m endations,
T h ey m ay be affected by a d d i
by Congressional action
on taxes
and on ap p rop riatio n s recom m ended by the President, by the am ou n t of
taxes actu ally collected, and by the rate at which the ap p rop riated m oney is
actually spent by the agencies.
T h is issue of the F ed eral B u d get in B rief sum m arizes the m ost im p ortan t
facts ab ou t the B ud get for the fiscal year 1953, w hich will begin on Ju ly 1,
1952, and end on Ju n e 30, 1953.
2
CONTENTS
S ummary of T he 1953 B u d g e t .....................................................................
B udget R e c e ip t s ...............................................................................................
B udget E x p en d itu r es ......................................................................................
B udget E xpenditures by F unction :
M ilitary services..........................................................................................
International security and foreign relations........................................
Finance, commerce, and in dustry.........................................................
Transportation and com m unication.....................................................
Natural resources........................................................................................
Agriculture and agricultural resources.................................................
L a b o r ..............................................................................................................
Housing and community developm ent................................................
Education and general research .............................................................
Social security, welfare, and h ealth ......................................................
Veterans’ services and benefits...............................................................
General governm ent. . . ............................................................................
In terest..........................................................................................................
B udget E xpenditures as a P ercentage of N ational I ncome ...........
B udget E xpenditures per C a p it a ..............................................................
A p p e n d ix e s ...........................................................................................................
A. T rust Funds— Receipts and Expenditures....................................
B. Receipts from and Payments to the P u b lic..................................
C. Budget Authorizations Related to Expenditures........................
H istorical T a b le s :
Budget Receipts and Expenditures and Public D ebt— Fiscal
Years 1 9 1 5 -5 3 ..........................................................................................
Budget Expenditures by Function— Fiscal Years 1944-53 ...........
3
Page
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8
10
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16
18
20
22
24
26
28
30
32
34
36
36
39
40
42
43
44
44
SUMMARY OF THE 1953 BUDGET
F ed eral expenditures in the fiscal
year 1953 are estim ated at 85.4
billion dollars, m ore than twice the
am ount the G overnm ent spent in
1950, the last fiscal year before the
attack on K o rea, and 20 percent
higher than estim ated expenditures
for the current fiscal year.
M ore than three fourths of total
expenditures in 1953 will be for
m ajor national security p rogram s—
m ilitary services, international secu
rity and foreign relations, atom ic
energy, defense production and eco
nomic stabilization, civil defense,
and m erchant m arine activities.
T hese program s not only dom inate
the 1953 B udget, but also account
for p ractically all of the increase in
total expenditures since 1950.
Expenditures for all other G o v
ernm ent program s com bined have
declined since 1950, although som e
of these program s contribute directly
to the defense effort and have been
exp an d ed — such as defense housing,
aid for schools in defense areas,
generation and transm ission of pow er
for atom ic energy and defense plants,
and the port security p rogram of
the C oast G u ard.
U n d er present tax laws, Budget
receipts in 1953 are estim ated at
71.0 billion dollars. T h is is 8.3
billion dollars higher than estim ated
receipts in the current fiscal year,
but it will fall short of m eeting the
increase in expenditures. A deficit
of 14.4 billion dollars is in prospect
for 1953 unless ad d ition al tax legis
lation is enacted.
In his B u d get M essage, the Presi
dent said that if new international
tensions do not develop, and if no
further aggressions are attem p ted , he
hoped th at B udget expenditures
could be reduced after the fiscal year
1954. By then, he said, m ost of the
currently planned m ilitary e x p an
sion should have been com pleted.
BU DG ET E X PEN D ITU R E S
[Fiscal years.
In billions]
1950
actual
1951
actual
1952
estimated
1953
estimated
Major national security program s.........
All other Government program s.............
$17. 8
22. 3
$26.4
18. 2
$49. 7
21.2
$65. 1
20. 3
Total Budget expenditures..........
40. 1
44. 6
70. 9
85. 4
4
BUDGET RECEIPTS AND EXPENDITURES
SURPLUS OR DEFICIT
Billions of Dollars
F is c a l Y e a r s
75
100
1951
RECEIPTS
EXPENDI TURES
1950
RECEIPTS
EXPENDI TURE S
1949
RECEIPTS
E XPENDI TURES
1948
RECEIPTS
EXPENDI TURE S
1945
RECEIPTS
E X PENDI TURE S
5
BUDGET RECEIPTS
U n d er present tax laws, B udget re
ceipts in the fiscal year 1953 are
estim ated at 71.0 billion dollars, 13
percent higher than estim ated re
ceipts this year.
M ore than 80 percent of the 1953
receipts will com e from direct taxes
on individuals and corporations.
A bout 14 percent will com e from ex
cise taxes on liquor, tobacco, g as
oline, and other products.
T h e 13 percent rise in Budget
receipts over 1952 will result m ainly
from (a) the full-year effect of the
higher tax rates enacted by the last
session of Congress,
(b) higher
levels of personal income, and (c) a
continued high level of corporate
profits.
A lthough the level of B ud get re
ceipts estim ated for 1953 under pres
ent tax laws is at an all-tim e high, it
6
is still 14.4 billion dollars short of
estim ated expenditures. In his B u d g
et M essage the President said th at the
Congress had responded p ro m p tly to
the tax recom m endations he m ad e
im m ediately after K o re a, but had
enacted only abou t h alf o f the 10billion-dollar tax recom m en dation
he m ad e last year. H e ad d ed , “ We
cannot now undertake, on a strict
pay-as-w e-go basis, the d u al jo b of
m akin g up for the in ad equ ate reve
nue legislation last year and m eeting
the increases in expenditures im m e
diately a h e a d .”
H e proposed that
the Congress, by closing loopholes in
the tax laws and by m akin g som e in
creases in present tax rates, raise at
least the ad d ition al revenue by which
last y ear’s legislation fell short of his
recom m endations.
BUDGET RECEIPTS
Where the M oney W ill Come From in 1953
5.0
Billions of Dollars
10.0
2 5 .0
30.0
Note: Receipts exclude new tax proposals
and are shown after deduction of refunds.
83.2
Customs and O th er Receipts
Total Budget Receipts
Fiscal Y e ar
1953
E st.
1952
E st.
1951
Billions
CUSTOMS and OTHER RECEIPTS
$71.0
_4%
62.7
-
.{¿«EXCISE TAXES
\ I 4 %
48.1
i » —
«
'
y* :
„*
1950
37. 0
1949
38.2
Direct Taxes on
¿CORPORATIONS
1948
42. 2
39%
1945
44.8
1953 E s tim a te d
7
BUDGET EXPENDITURES
N early three-fourths of .total B u d g
et expenditures in the fiscal year
1953 will be for expandin g our own
arm ed forces and for aiding our allies.
E xpenditures for m ilitary services
alone are estim ated at 51.2 billion
dollars, 11 billion dollars m ore than
the entire cost of operating the G o v
ernm ent in 1950, the year before the
K o rean outbreak. E xpenditures for
international security and foreign
relations are estim ated at 10.8 billion
dollars.
A large p art of the rem aining ex
penditures of the G overnm ent arise
from past wars. M ost of the esti
m ated 6.3 billion dollars for interest
is needed because of the 225-billiond ollar increase in the public debt
which took place during W orld W ar
II. T h e estim ated 4.2 billion dollars
for veterans will be spent for m edicah
care, pensions, and other benefits to
our 19 m illion veterans.
Expenditures for all other p ro
gram s are estim ated at 12.9 billion
dollars, 15 percent of total expen di
tures for the fiscal year 1953. In
cluded in this am ount are expendi
tures for m any activities which
contribute directly to national d e
8
fense, such as the developm en t of
atom ic energy (classified u n d er n at
ural resources), the prom otion of
defense production and econom ic
stabilization (classified under finance,
com m erce, and industry), the con
struction of fast cargo vessels designed
to m eet defense shippin g needs
(classified under transportation and
com m unication), and the civil d e
fense p rogram (classified under hous
ing and com m unity developm en t).
M an y program s have been cut
back because of the heavy d em an d s
of the defense effort on the N a tio n ’s
resources. A lthough the p rogram
to provide housing in defense areas
will be expan ded, other housing p ro
gram s will be curtailed.
F ed eral aid
to highw ays is being concentrated
on
those
needed.
and
projects
The
telephone
m ost
rural
loan
urgently
electrification
p rogram
has
been reduced, conserving critically
short
supplies
of
alu m inu m
and
copper.
G overnm ent
program s,
classified
accord in g to the broad purposes or
functions they are designed to serve,
are discussed in the following pages.
BUDGET EXPENDITURES
Billions of Dollars
Where the M oney W ill G o in 1953
I0
50
Commerce, and La b o r
Total Budget Expenditures
Fiscal Y e ar
Billions
1953
E st.
$85. 4
1952
E st.
70. 9
1951
44. 6
1950
40.1
1949
40.0
1948
33.8
1945
98. 7
» 8 5 4 7 « <l-
.11'--------2
VETERANS 5%
INTERNATIONAL
%
MILITARY SERVICES
60%
1953 BUDGET
MILITARY SERVICES
T h e cost of expan d in g and strength
ening our arm ed forces is the largest
item in the Budget.
E xpen ditures for m ilitary services
in the fiscal year 1953 are estim ated
at 51.2 billion dollars, alm ost 60 p er
cent of all budget expenditures.
N early 40 percent of'the m oney to
be spent for m ilitary services is for
m ilitary equipm ent. M ore than h alf
these procurem ent expenditures will
be for aircraft. T h e rest will be for
trucks, tanks, radios, ships, guns, and
other items. It takes m any m onths
to design, order, produce, and d e
liver the com plex equipm ent required
by our arm ed forces. T he high rates
of delivery now being achieved reflect
the efforts m ade during the past 18
m onths in getting the flow of p ro
duction started. D u rin g the com ing
year the rates of delivery— and ex
p en d iture— should continue to rise
as m ore and m ore items m ove into
large-scale production.
M o d ern w eapons and m ilitary
equipm ent are very expensive. T h ey
are m uch m ore com plex and m uch
m ore costly than the w eapons and
equipm en t used in W orld W ar II.
In som e of our new aircraft, for
exam ple, the cost of the electronic
equipm en t alone is m ore than the
entire cost of W orld W ar II planes
designed for the sam e type of mission.
In his B udget M essage, the Presi
dent said that by the end of the
10
fiscal year 1953 we will have reached
or passed the peak p roduction rates
for all m ajor m ilitary item s excep t
som e of the newer m odel aircraft and
som e w eapons not yet in production.
A lm ost 25 percent of the ex p en d i
tures for m ilitary services is for
op eratin g and m ain tain in g m ilitary
installations and equipm ent.
E xpen ditu res for active duty m ili
tary personnel are ab ou t 20 percent
of total m ilitary spending. T h ese
expenditures are largely for p ay ,
food, clothing, and tran sportation.
T h e num ber of m en and w om en in
the arm ed forces has m ore than
doubled since the attack on K o re a .
T h e 1953 Budget provides for a
further increase in m ilitary strength
to 3.7 million, in order to build
tow ard the goals recom m ended by
the President— an active duty A rm y
of 21 divisions, an A ir Force of 143
wings, a N avy of 408 m ajo r co m b at
ships and 16 large carrier air groups,
a M arin e C orps of 3 divisions, and
the necessary supporting
elem ents
for all these services.
T h e 1953 B u d get also provides for
building and m odernizing m ilitary
bases and installations, for research
and developm ent of new and im
proved w eapons, for stockpiling criti
cal raw m aterials, and for strength
ening and m odernizing the reserve
forces and N atio n al G u a rd units.
MILITARY SERVICES
illions of Dollars
Where the M oney W ill G o in 1953
20
Stockpiling— Strategic and C ritical M a terials
I N a tio n a l G u a rd , O rg an ized Reserves, R O T C
t
of Retired Personnel, and O ther
Total Expenditures
M ILITARY SERVICES
Fiscal Y e ar
Billions
% of Budset
1953
E st.
$51.2
59.9
1952
E st.
39.8
56. 1
1951
20.5
45.8
1950
12.3
30.6
1949
11.9
29. 7
1948
11.0
32.4
1945
84.6
85. 7
PERCENT OF 1953 BUDGET
11
INTERNATIONAL SECURITY AND FOREIGN RELATIONS
D u rin g the fiscal year 1953, ab out
three-fourths of the estim ated ex
penditures for international security
and foreign relations will be for m il
itary aid to our allies in the N orth
A tlantic T reaty O rgan ization and to
other nations in the free world.
D eliveries of m ilitary equipm en t to
our allies are expected to increase
from an estim ated 4.0 billion dollars
in the current fiscal year to 8.0 billion
dollars in the fiscal year 1953. T hese
deliveries are designed to provide
friendly nations with the critical m ar
gin of equipm en t necessary to expand
their com bat-read y forces quickly.
In his B u d get M essage, the President
pointed out that our m ilitary p ro d u c
tion is increasing rapidly, and stated:
“ I have directed that a policy of
allocatin g m ilitary equipm en t be
established which will assure that
U nited States forces in E urope and
N A T O forces, as well as other forces
of certain foreign countries which in
the case of w ar are m ost likely to
be first attacked, are ad eq u ately
eq u ip p ed .”
E xpenditures for econom ic aid and
technical assistance will decline from
abou t 2.9 billion dollars in the current
fiscal year to ab ou t 2.5 billion dollars
in fiscal year 1953. M ost of this aid
will be used to help our allies m ain
tain and expand their defense p ro
gram s.
T h e bulk of the m ilitary and eco
nom ic assistance will go to N orth
A tlantic T reaty countries in W estern
12
Europe. O u r allies in that are a are
now increasing their active forces and
com bat strength under the leadersh ip
of G en eral Eisenhower.
M ilitary
and econom ic assistance will also be
provided to other E u ro pean countries
on the outer rim of the iron curtain,
such as G reece, T urkey, and Y u g o
slav ia.
T h e B u d get also provides for m ili
tary and econom ic aid for the M id d le
E ast, A sia, an d L atin A m erica.
How ever, com pared with E u ro p e,
proportionately greater em phasis will
be p laced on technical assistance an d
developm en tal aid under the Point
IV program . T h is aid, together with
loans from the E x p o rt-Im p o rt B ank
an d contributions to the U n ited N a
tions technical assistance p rogram s,
is designed to help these areas ov er
com e conditions of hunger, poverty,
and disease which present a con tin u
ous threat of subversion and in ternal
collapse.
Expenditures for the con d u ct of
foreign affairs are estim ated at 319
m illion dollars, or ab ou t 3 percent of
the total am ou nt estim ated for in ter
nation al security and foreign relations
in 1953. O f this am ount, ab o u t 50
percent is for the V oice of A m erica
an d other overseas inform ation p ro
gram s. T hese program s are designed
to expose the com m unist m enace an d
carry the truth ab ou t the d em ocratic
w ay of life to people in all p arts of
the w orld— including those behind
the iron curtain.
INTERNATIONAL SECURITY AND FOREIGN RELATIONS
Millions of Dollars
Expenditures for Fiscal Yea.s
2,000
8 ,0 0 0
4 ,0 0 0
10,000
4,781
Note: 1945 excludes lend-lease aid to other countries, which was included i
M ilitary Services
Expenditures
Fiscal Y e a r
IN T E R N A T IO N A L S E C U R IT Y A N D
Millions
R E L A T IO N S
% of Budget
1953
Es«.
$10,845
12. 7
1952
E st.
7, 196
10.2
1951
4,727
10.6
1950
4, 805
12.0
1949
6,459
16.1
1948
4, 781
14.1
1945
67 7
.7
F O R E IG N
PERCENT OF 1953 BUDGET
13
FINANCE, COMMERCE, AND INDUSTRY
M ore than 96 percent of the ex
penditures for finance, com m erce,
and industry program s in the fiscal
year 1953 will be for helping to ex
p an d defense production and helping
to prevent inflation. Because of the
requirem ents of the defense effort,
expenditures for these program s are
estim ated at nearly four times their
1950 level.
F or the m ost p art, private business
is building and equipping the plants
needed for defense production. T h e
G overnm ent is helping by m aking
loans to defense industries; by g u ar
anteeing bank loans to m eet working
cap ital requirem ents of defense con
tractors and subcon tractors; by m ak
ing substantial purchases of rubber,
m agnesium , copper, alum inum , m an
ganese, and other critical m aterials
for resale to defense m anufacturers;
and by m aking advances and p u r
chases to finance expanded produc
tion of m achine tools.
C ontrols have been set up over the
use of a num ber of critical m aterials
14
to help direct them to producers of
m ilitary and essential civilian goods,
and to assure other users a fair share
of the rem ain ing supply. T h e S m a ll
Defense Plants A dm inistration has
been established to help sm all bu si
nesses obtain defense contracts, ad e
q u ate financing, and needed m a
terials.
T h e Econom ic Stabilization A g en
cy is adm inistering price, w age, and
rent controls to help prevent in fla
tion. D ollars-and-cents price ceil
ings are being established w herever
practicable. Fed eral rent control has
been restored in about 100 defense
areas to protect m ilitary personnel
and defense workers from excessive
rent increases.
O ther expenditures in this category
include those for the continuing p ro
gram s of the G overnm ent to pro
m ote effective com petition and to
aid business, such as adm inistration
of the paten t and antitrust laws and
loans to business by the R econ stru c
tion Fin ance C orporation.
FINANCE, COMMERCE, AND INDUSTRY
Where the M oney W ill G o in 1953
Millions of Dollars
500
Defense Production :
600
M a te ria ls A llo ca tio n s and A id s to Sm all Business
Promotion and Regulation of Business
Total Expenditures FINANCE, COMMERCE, AND INDUSTRY
Fiscal Y e ar
Millions
% of Bue
1953
E s t.
$833
1.0
1952
E st.
751
1.1
1951
176
.4
1950
213
.5
1949
127
.3
1948
132
.4
1945
236
.2
PERCENT OF 1953 BUDGET
15
TRANSPORTATION AND COMMUNICATION
Expenditures for transportation
and com m unication program s are
expected to be lower in the fiscal year
1953 than in 1952.
F ed eral expenditures for highw ays
are m ain ly in the form of grants-inaid to the States. T hese grants are
being concentrated upon projects of
p articular im portance for defense and
essential civilian transportation. In
addition, the B ureau of Public R o a d s
is constructing access roads to defense
plants, m ilitary installations, and
sources of strategic m aterials.
U nder present postal rates, it is
estim ated that the Post Office will be
operated at a net loss of 669 m illion
dollars in 1953. T h is large deficit
will occur despite an increase of 10
percent since 1945 in the am ount of
work done per m an-hour by postal
em ployees. First-class m ail will show
a profit, but heavy losses will be in
curred on other classes. T hese losses
result from the fact th at postal rates
have not kept p ace with postw ar
increases in w age, tran sportation,
and other op eratin g costs. T h e Presi
dent has recom m ended im m ediate
rate increases which would yield 225
m illion d ollars in the fiscal year 1953,
and 500 m illion d ollars ann ually in
later years. I f enacted, the rate in
creases will reduce the postal deficit
to ab ou t 444 m illion dollars in 1953.
T h e C oast G u ard , which operates
m arine n avigation aids and enforces
16
m aritim e law s, now has the a d d i
tional function of protecting ports
again st sab otage. It is also increas
ing the crew com plem ents of its
vessels and of its shore stations ou t
side the U n ited States so th at it will
be better p rep ared to assist the N av y
in the event of a future em ergency.
E xpenditu res for river and h arb o r
navigation im provem ents by the
C orps of Engineers will be reduced
in the fiscal year 1953. T h e Presi
dent recom m ended that only one
ne\v project be started, an d th at
construction on going projects be
curtailed.
M ost of the expenditures for the
m erchant m arine will be for the
construction of 35 fast cargo vessels
to m eet special shipping req u ire
m ents of the defense effort. T h e
G overnm ent is also operatin g 470
m erchant vessels reactivated from
the reserve fleet to supplem ent p ri
vately owned shipping cap acity in
the defense em ergency.
T o prom ote safe and efficient aviadon operations, the Civil A eronautics
A dm inistration provides air n av ig a
tion and lan d in g aids, enforces safety
regulations, and provides financial
assistance for local airport construc
tion.
The
Civil
A eronautics
A d
m inistration is also responsible for
the identification and control of air
traffic for purposes of air defense.
TRANSPORTATION AND COMMUNICATION
Where the M oney W ill G o in 1953
Millions of Dollars
600
I 40
R egulatory and O th er
Total Expenditures TRANSPORTATION AND COMMUNICATION
Fiscal Y e a r
Millions
% of Budget
1953 Est. $ 1 , 6 4 3
1.9
1952 Est.
2,153
3. 0
1951
1,685
3. 8
1950
1,703
4.2
1949
1,600
4.0
1948
1,213
3. 6
1945
3,364
3.4
9 8 5 4 7 8 <)— 5 2 --------:-i
17
NATURAL RESOURCES
M ore than h alf the expenditures
for n atural resources in the fiscal
year 1953 will be for the develop
m ent of atom ic energy.
T h e 1953 B udget provides in
creased am ounts for the procure
m ent of uran ium ores and con
centrates, the production of fission
able m aterials and atom ic weapons,
and the developm ent of im proved
w eapons.
Increased em phasis will
be placed on the developm ent of nu
clear reactors for the production of
fissionable m aterials and for the
propulsion of subm arines and air
craft. T h e B udget also provides for
continuation of research in indus
trial and other peacetim e ap p lica
tions of atom ic energy, including
those in biology and m edicine.
Since transm itting the Budget, the
President recom m ended a further ex
pansion of the atom ic energy pro
gram . T h is expansion is not ex
pected to increase B udget expendi
tures until after the fiscal year 1953.
M ost of the rem aining expendi
tures for natural resources will be
18
for m ultiple-purpose river develop
m ent projects— for flood control,
reclam ation of arid land, and for
furnishing urgently needed electric
pow er for atom ic energy and d e
fense production. In order to hold
dow n B udget expenditures and to
conserve m aterials needed for defense
production, m any long-range devel
opm ents are being deferred. T h e
only new projects the President rec
om m ended for 1953 are those which
will yield urgently needed power,
such as the St. Law rence seaw ay and
pow er project, and 4 flood-control
projects
in
the
flood-devastated
K an sas-M issou ri area.
T h e B u d get also includes funds
for finding new sources of m inerals,
for research in the use and conserva
tion of existing supplies, and for the
developm en t of substitutes.
O ther resource program s in the
B udget
are
for
developm ent
and
use of the valu ab le tim ber, range,
and m ineral resources of national
forests and pu blic lands.
NATURAL RESOURCES
Where the M oney W ill G o in
Millions of Dollars
1953
1,775
Fish and W ild life , Recreational and O ther Resources
Total Expenditures
cal Y e a r
N ATU RAL
Millions
% of Budget
1953
E st.
$3,237
3.8
1952
Est.
3,082
4. 3
1951
2,051
4. 6
1950
1,624
4.0
1949
1,536
3.8
1948
1,113
3.3
1945
247
.3
RESO U RCES
PERCENT OF 1953 BUDGET
19
AGRICULTURE AND AGRICULTURAL RESOURCES
F ederal agricu ltu ral p rogram s are
designed to help farm ers produce
m ore efficiently, to conserve soil re
sources, to sup port farm prices and
income, and in various other w ays to
im prove living conditions on the
farm . T h e price support p rogram is
now being used to encourage the
production of cotton, wheat, corn,
and other com m odities m ost needed
in the defense period.
E xcept for price supports, expendi
tures for farm p rogram s as a w'hole
will decline in the fiscal year 1953.
E xpenditures to sup port farm prices
vary greatly from year to year, d e
pending on general econom ic condi
tions and the am ou n t of farm p rod u c
tion. N et price support outlays by
the C om m odity C red it C orporation
are estim ated at 240 m illion dollars
in the fiscal year 1953 and 70 m illion
dollars in 1952, com pared to net
receipts of 782 m illion dollars in
1951. T h e 1951 net receipts resulted
m ainly from the sale of 3,300,000
bales o f cotton and 130,000,000
bushels of w heat acquired in earlier
years. O th er expenditures for the
support of farm prices and farm
incom e include those m ade under
the Intern ation al W heat A greem ent,
the S u g a r Act, and the perm anent
legislation for the rem oval of surplus
20
agricu ltu ral com m odities from the
m arket.
T h e D ep artm en t of A griculture
offers farm ers technical advice and
assistance on farm m an agem en t p ra c
tices and soil conservation. T h e D e
partm en t also helps farm ers p ay for
contour cultivation, terracing, ap p li
cation of fertilizers, and other con
servation m easures. In addition , u p
stream flood-control work is u n d er
taken on both p rivate and F ed eral
lands.
E xpenditures for rural electrifica
tion and rural telephones have been
reduced, conserving critical m a
terials such as alu m in u m and copper.
T h e am ount of new loans ap p rove d
in the fiscal year 1953 will be held
to the 1952 level, su bstan tially below
the 1950 and 1951 levels.
T h ro u g h other loan program s the
D ep artm en t
finance
farm
of
A griculture
operations
courages farm ownership.
helps
and
en
T he D e
partm en t also carries on basic re
search in farm production and m a r
keting problem s, assists in the con
trol of insects and p lan t and anim al
diseases, and m akes grants to States
for education, training, and other
extension work designed to im prove
the efficiency of farm operations.
AGRICULTURE AND AGRICULTURAL RESOURCES
Millions of Dollars
Where the M oney W ill G o in 1953
400
600
Research and O ther A g ricultu ral Services
Total Expenditures AGRICULTURE AND AGRICULTURAL RESOURCES
Fiscal Y e a r
Millions
% of Budget
1953 Est. $ 1 , 4 7 8
1.7
1952 Est.
1,408
2.0
1951
650
1.5
1950
2,783
6.9
1949
2,512
6.3
1948
573
1.7
1945
1,602
1.6
PERCENT OF 1953 BUDGET
21
LABOR
G rants to the States for the ad m in
istration of public em ploym ent offices
and of unem ploym ent com pensation
account for 80 percent of Federal ex
penditures for labor program s.
In the fiscal year 1953, the States
will have ab ou t 40,800 em ployees
assigned to unem ploym ent com pen
sation and public em ploym ent service
work. T hese S tate em ployees will be
paid from the F ed eral grants.
T h e public em ploym ent offices
provide an im p ortan t m eans of re
cruiting workers for defense plants.
In the fiscal year 1953, m ore p la ce
ments and fewer claim s for unem
p lo y m e n t b e n e fits a r e e x p e c te d
despite increases in unem ploym ent in
some localities.
T h e D ep artm en t of L a b o r assists
em ployers, especially those in defense
industries, to set up apprenticeship
training for skilled craftsm en, and
skill-im provem ent p rogram s for p ro
22
duction workers. T h e D ep artm en t
helps S tate safety inspectors to con
d uct accident-prevention cam p aig n s
in h azard o u s industries. It also en
forces m inim u m -w age and ch ild-labor
laws, and determ ines m inim u m w ages
to be p a id by G overn m en t co n
tractors.
T h e F ed eral M ed iation and C on
ciliation Service, and the N atio n al
M ed iatio n B o ard for railroad s and
airlines, help lab or and m an agem en t
settle disputes in interstate industries.
T h e N atio n al L a b o r R elation s B o ard
determ ines through elections the em
ployees’ choice of unions to represent
them , and acts to prevent u nfair lab or
practices by unions and em ployers.
Inform ation on such subjects as the
cost o f living, w ages, em ploym ent,
in dustrial injuries, and housing con
struction is collected and published
by the B u reau of L a b o r Statistics.
LABOR
Where the M oney W ill Go in 1953
Millions of Dollars
200
M ed iatio n and Regulation of La b o r Relations
Lab o r Information, Statistics, and G en e ral Adm inistration
Total Expenditures
Fiscal Y e a r
Millions
LA BO R
% of Budget
1953 Est.
$246
.3
1952 Est.
240
.3
1951
228
.5
1950
262
.6
1949
193
.5
1948
183
204
.5
1945
.2
PE RCENT OF 1953 BUDGET
23
HOUSING AND COMMUNITY DEVELOPMENT
Fifty percent of the estim ated net
expenditures for housing and com
m unity developm en t p rogram s in the
fiscal year 1953 is for civil defense.
T h e President recom m ended a su b
stan tial increase in the civil defense
program . E xp en d itu res for civil d e
fense in 1953 will finance the Federal
stockpiling of em ergency supplies,
and will m atch S tate and local ex
penditures for special equipm en t and
protective shelters in u rb an areas.
In areas w here housing shortages
are im peding the defense effort, F ed
eral m ortgage insurance and m ort
gage purchases are being used to
help builders ob tain financing for the
construction of houses. In ad d i
tion, when p riv ate builders cannot
supply ad eq u ate housing at prices
or rentals w hich defense workers or
m ilitary personnel can afford, the
Fed eral G overnm ent is authorized
to construct housing. T h e G overn
m ent will also m ake loans an d grants
to help com m unities in these areas
finance w ater and sewer system s and
related facilities.
In order to conserve critical m a
terials and restrain in flationary pres
24
sures, nondefense housing an d com
m unity developm ent p rogram s are
being held below the levels previously
authorized by law . F or exam p le,
Fed eral assistance will be gran ted to
local housing authorities for startin g
75,000 units of low-rent p u blic h ous
ing in 1953, com pared to the av e rag e
of 135,000 units per year au th orized
by law. As the local auth orities
obtain long-term credit from p riv ate
investors, they are expected to re p ay
construction loans m ade to them by
the Public H ousing A dm inistration.
In 1953 receipts from this source are
expected to exceed expenditures for
new loans.
T h e Federal G overnm ent m akes
loans to assist cities in elim inating
slums
and
areas.
A t the present tim e
redeveloping
blighted
cities
m ay acquire sites, but m ay not d e
m olish existing structures or build
new ones unless such m easures are
consistent with defense needs.
L oan s
for housing at edu cation al in stitu
tions are confined to colleges w ith
housing shortages resulting directly
from defense activities.
HOUSING AND COMMUNITY DEVELOPMENT
Millions of Dollars
Where the M oney W ill G o in 1953
100
300
Total Expenditures HOUSING AND COMMUNITY DEVELOPMENT
Fiscal Year
Millions
1953 Es». $ 6 7 8
% of Budget
.8
1952 Est.
881
1.2
1951
602
1.3
1950
262
.6
1949
282
.7
1948
82
.2
1945
-193
-.2
PERCENT OF 1953 BUDGET
25
EDUCATION AND GENERAL RESEARCH
A lm ost 90 percent of estim ated
F ed eral expenditures for education
and general research in the fiscal
year 1953 will be for aid to State and
local school system s. T h is aid in
cludes 290 m illion dollars for the pro
gram recom m ended by the President
which would provide grants to the
States to assist them in financing the
operating costs of elem entary and
secondary schools. It also includes
220 m illion d ollars to help build and
operate schools in those com m unities
where Fed eral activities— especially
defense activities— have im posed spe
cial burdens.
O ther activities to prom ote ed u ca
tion include a proposed new p rogram
of general scholarships and loans for
college students, a long-established
p rogram of gran ts to aid the States
in providing vo cation al education,
continued aid for the operation of
lan d -gran t colleges, an d assistance
to certain special institutions such
as H ow ard U niversity, the C olum b ia
Institution for the D eaf, an d the
A m erican P rinting H ouse for the
Blind.
26
A m ong general libraries and m use
ums supported by the F ed eral G o v
ernm ent are the L ib rary of C ongress,
the Sm ithsonian Institution, the
N ation al G allery of Art, and the
Botanic Gardens.
G eneral-purpose research is carried
on by the Census B ureau, the N a
tional Bureau of Stan d ard s, and the
N ational Science Foundation . T h e
Science Foundation will study w ays
in which scientific know ledge can
be used better, and the best paths
to follow for the discovery of further
basic knowledge. It will also provide
financial support for basic scientific
research, and has alread y established
a sm all num ber of grad u ate fellow
ships for a selected group of prom is
ing young scientists.
T h e foregoing activities cover only
the general-purpose edu cational an d
research activities of the G overn
m ent. R elated activities, involving
m uch larger expenditures, are in
cluded elsewhere in this booklet.
E xam ples are edu cation al benefits
for veterans, m ilitary research, and
atom ic energy research.
EDUCATION AND GENERAL RESEARCH
Millions of Dollars
Where the M oney W ill G o in 1953
300
I 00
r
I General-purpose Research
Total Expenditures EDUCATION AND GENERAL RESEARCH
Fiscal Year
1953 Es«.
Millions
% of Budget
$624
.7
1952 Est.
238
.3
1951
115
.2
1950
123
.3
1949
75
.2
1948
65
.2
1945
158
.2
||® 4
P E RCENT OF 1953 BUD6ET
27
SOCIAL SECURITY, WELFARE, AND HEALTH
N early 60 percent of the G overn
m ent’s expenditures for social secu
rity, welfare, and health are in the
form of gran ts to S tates for public
assistance benefits, lunches for school
children, reh ab ilitation of the physi
cally h an d icap ped , and various health
services.
T h e largest gran ts are for public
assistance. T hese gran ts, m atched
by contributions from the States, are
used to p ay m onthly benefits to
dependent children, the needy aged,
the blind, and the d isabled . A bout
4,600,000 people are expected to re
ceive this form of assistance in the
fiscal year 1953. Public assistance
should not be confused with old-age
and survivors insurance, which is
financed through a trust fund and is
not included in B u d get expenditures.
M ore than 5,000,000 people will re
ceive old-age and survivors insurance
paym ents in 1953.
Since 1937, the G overnm ent has
operated a retirem ent and insurance
system for railro ad workers, financed
by payroll taxes. T h e transfer of
these taxes to a trust fund is counted
as a B udget expenditure.
28
M ore than h alf the F ed eral ex
penditures for the prom otion of p u b
lic health are for grants to States for
such activities as hospital construc
tion, m aternal and child health,
general com m unity health services,
and the control of tuberculosis, c an
cer, and other diseases. T h e re
m aining expenditures are prim arily
for m edical research, professional
assistance to State and local health
agencies, and the operation of Public
H ealth Service hospitals.
Expenditures for crim e control and
correction are m ainly for the F ed eral
B ureau of Investigation, but they
also include the costs of the F ed eral
prison and p robation system s, the
U nited States district attorneys and
m arshals, the Secret Service, and
narcotics control activities.
Federal gran ts help the States to
provide low-priced lunches for m ore
than 7 million school children.
O ther health and w elfare p rogram s
include special assistance given to
defense com m unities, accident com
pensation for G overnm ent workers,
and services provided by the B ureau
of Indian Affairs.
SOCIAL SECURITY, WELFARE, AND HEALTH
Where the M oney Wilt G o in 1953
200
400
600
800
1,000
Millions of Dollars
1,200
1,400
Total Expenditures SOCIAL SECURITY, WELFARE, AND HEALTH
29
VETERANS’ SERVICES AND BENEFITS
Expenditures for benefits and serv
ices to veterans in the fiscal year
1953 are estim ated at 4.2 billion
dollars, a decline of 43 percent from
the peak of 7.4 billion d ollars spent
in 1947. T h is decline reflects a sharp
d rop in B u d get outlays for read ju st
m ent benefits to W orld W ar II
veterans.
E xpenditures for com pen sation and
pensions are increasing. O n the av
erage, 3,179,000 in dividuals or fam
ilies are expected to receive com pen
sation or pension paym ents in 1953,
an increase of 84,000 cases over 1952.
It is expected that under existing
laws expenditures for these program s
will continue to increase for m any
years. T h e B ud get for 1953 includes
100 m illion dollars to cover proposed
increases in the rates of com pensation
for deaths or injuries resulting from
service in the arm ed forces.
R ead ju stm en t benefits for ed u ca
tion and train in g of W orld W ar II
veterans are declinin g rapidly. T he
1953 B udget includes funds for an
average expected enrollm ent of
491.000 in school, jo b , an d farm
training courses— less than h alf the
num ber in the current year. B y ‘the
end of 1953 ab ou t h alf of the
15.800.000 veterans of W orld W ar II
will have received these benefits.
T h e 1953 B u d get also includes 75
million dollars for tfie first year cost
30
of a new education and training
program which the President has
proposed for veterans who have
served since the start of the K o re an
conflict.
O ther readjustm ent benefits in
1953 will be largely the paym ent of
p art of the first y e ar’s interest on
G overnm ent-guaranteed loans for
homes, farm s, and businesses. In
1953 it is estim ated that the G o v
ernm ent will gu aran tee, under the
“ G. I. bill,” 391,000 new loans,
slightly below the current y e ar’s
level.
T he B udget provides for an av er
age of 134,000 veterans in hospitals
and veterans’ hom es in 1953 and for
3,468,000 outpatient visits an d tre a t
ments. T w enty new hospitals will
be opened and construction of three
hospitals will be started in 1953, as
the program begun in 1945 to p ro
vide 36,500 ad d ition al beds nears
com pletion.
O ther expenditures are for death
claim s under the new servicem en’s
indem nity p rogram begun in 1951,
reim bursem ents to the veterans in
surance trust funds for deaths trace
able to w ar hazards, and the costs of
adm inistration. T h e V eterans A d
m inistration will em ploy an esti
m ated 174,000 people in 1953, ab ou t
three-fourths in m edical and hos
pital work.
VETERANS SERVICES AND BENEFITS
Where the M oney W ill G o in 1953
Millions of Dollars
500
1,000
1,500
2,000
2,500
Total Expenditures VETERANS’ SERVICES AND BENEFITS
Fiscal Year
1953 Est.
Millions
(4,19 7
% of Budget
4.9
1952 Est.
5,165
7.3
1951
5,339
12.0
1950
6,645
16.6
1949
6,725
1 6. 8
1948
1945
6,6531 9 . 7
2, 096
P E RCENT OF 1953 BUDGET
2. 1
31
GENERAL GOVERNMENT
M ore than 60 percent of the exp en
ditures for general governm ent are
for tax collection, financial m an ag e
m ent, and the G o vern m en t’s p ay
m ent tow ard civil service em ployees’
retirem ent. T h e rem ain in g expen di
tures include the cost of services
which are perform ed centrally for all
agencies and the cost of the legislative
and ju d ic ia l branches of the G overn
m ent.
In 1953 the B u reau of Internal
R evenue will h an dle approxim ately
90 m illion tax returns. In addition,
the B ureau is intensifying its investi
gations of the tax returns and activi
ties of racketeers, and is enforcing
the w agering taxes levied by the
R even ue A ct of 1951. T h e T reasu ry
D ep artm en t also m an ages the public
debt, m ints coins, prints currency,
and pays the G overn m en t’s bills.
T h e G en eral A ccountin g Office au
dits the accounts of G overnm ent
agencies. T h e recently established
R enegotiation B o ard reviews profits
m ad e
under
defense
contracts
in
order to prevent or recover any ex
cessive G overnm ent paym ents.
A bout tw o-thirds of the civilian
G overnm ent em ployees are m em bers
of the civil service retirem ent and
disability system , which is financed
through sum s collected
from em
ployees an d from the G overnm ent as
em ployer.
m ent
in
The
the
G overnm ent
fiscal
year
estim ated at 458 m illion dollars.
32
p ay
1953
is
T he G eneral Services A d m in istra
tion, as the central property and
records m anagem ent agency of the
Governm ent, purchases and stores
supplies and equipm ent, m an ages
public buildings, operates the N a
tional Archives, and supervises the
storage of Governm ent records. T h e
Governm ent Printing Office, the
largest printing establishm ent in the
world, prints for G overnm ent use and
for sale to the public a daily record of
the proceedings of C ongress, other
Congressional docum ents, and m ate
rials prepared by G overnm ent ag e n
cies in the perform ance of their
functions.
T h e Civil Service Com m ission is
the central personnel agency of the
Governm ent. It conducts ex am in a
tions, recruits em ployees for govern
ment service, assists in p lacin g these
em ployees in the positions for which
they are best qualified, and controls
prom otion and discharge policies.
T h e Im m igration and N a tu raliz a
tion Service adm inisters laws controling the entrance of aliens into the
U nited States and the natu ralization
of candidates for citizenship. T h e
D epartm ent of the Interior supervises
or governs our T erritories, island
possessions, and the Pacific islands for
which we are responsible under a
U nited
N ations
m an d ate. T h e
Federal G overnm ent also m akes an
annual paym ent to help finance local
governm ent in the D istrict of C o
lum bia.
GENERAL GOVERNMENT
Millions of Dollars
Where thè M oney W ill G o in 1953
400
500
Total Expenditures GENERAL GOVERNMENT
Fiscal Year
Millions
% of Budget
1953 Est. $ 1 , 4 8 4
1.7
1952 Est.
1.9
1,353
1951
1,209
2.7
1950
1,094
2.7
1949
1,006
2. 5
1948
1,303
3. 9
1945
781
.8
PE RCENT OF 1953 BUDGET
INTEREST
M ost of the expenditures for inter
est result from the fivefold increase
in the public debt th at took place in
W orld W ar II. In the absence of
new tax legislation, the public debt
will be ab ou t 260 billion dollars on
Ju n e 30, 1952, and 275 billion dollars
on Ju n e 30, 1953.
T h e estim ated increase in interest
paym ents in 1953 reflects the increase
in the public d ebt and the recent rise
in average interest rates.
A bout h alf the interest on the p u b
lic debt is p aid on m arketab le obli
gations. M ost of these securities are
held by banks an d insurance com
panies.
Interest on savings bonds am ounts
to ab ou t 25 percent of total interest
paym ents. T hese bonds are owned
by ab out 40 percent of all A m eri
can fam ilies. Interest on them is in
cluded in B u d get expenditures as it
accrues.
M an y series E savings bonds which
were purchased d u rin g W orld W ar
34
II are now m aturing. H olders m ay
retain them if they wish. U n d er le g
islation enacted in the last session of
Congress, these bonds will au to m at
ically accum ulate interest for another
ten years. If held beyond m aturity,
series E bonds yield a higher interest
rate in the first few years than new
bonds.
M ost of the rem ain ing interest is
paid on special obligations purch ased
by G overnm ent trust funds.
O ther nonm arketable obligations
are m ainly investm ent bonds bought
by insurance com panies and other
private institutions for long-term in
vestment,
and
short-term
savings
notes generally bough t by corp o ra
tions for tem porary investm ent of tax
reserves.
Interest paym ents are fixed o b lig a
tions of the F ed eral G overnm ent.
Unlike most B u d get expenditures,
they do not require an n u al au th o riza
tion by the Congress.
INTEREST
Billions of Dollars
W H E R E the M oney W ill G o in 1953
3.0
Interest on Public Debt—Other Nonmarketable Obligations
Interest on Refunds and Uninvested Trust Funds
T o t a l E x p e n d it u r e s
Fiscal Year
Millions
I N TE RE ST
% of Budget
1953 Est.
$ 6 ,2 5 6
7 .3
1952 Est.
5,95 5
8 .4
1951
5 ,7 1 4
1 2 .8
1950
5 ,8 1 7 *
1 4 .5
1949
5 ,4 4 5
13.6
1948
1945
5 ,2 4 8
15.5
3 ,662
3 .7
"
^Includes approximately $225 million resulting from chang<
PE RCENT OF 1953 BUDGET
methods.
'•
:ï:v-:v-îv-rs/m:;:
:
till!
35
BUDGET EXPENDITURES AS A PERCENTAGE OF NATIONAL
INCOME
F ed eral bud get expenditures in the
fiscal year 1953 will am oun t to nearly
29 percent of the nation al incom e in
that year, as com pared to 18 percent
in 1950, the last fiscal year before the
aggression in K o re a . In 1945, the
peak year of W orld W ar II expendi
tures, F ed eral spending am ounted to
m ore than 52 percent of the national
incom e.
E xpen d itures for m ilitary services
and for international security pro
gram s will be equ al to m ore than
one-fifth of the national incom e in
1953.
This is a greater proportion
of the national incom e than all F e d
eral
expenditures
represented
in
1950.
Expenditures for all the other pro
gram s of the F ed eral G overnm ent
will represent 8 percent of the n a
tional income in 1953, com pared to
10 percent in 1950.
BUDGET EXPENDITURES PER CAPITA
D u rin g the fiscal year 1953, F ederal
expenditures will am ou n t to 538
dollars for each m an, w om an, and
child in the country. T h is is twice
as m uch as per c ap ita expenditures in
1950. In 1945, the peak year of
W orld Wrar II expenditures, G o vern
m ent spending am oun ted to 709
dollars per cap ita.
A lm ost all of the increase since 1950
has been in p rogram s to expan d the
arm ed forces and to help strengthen
our allies overseas. In 1953, m ilitary
services and in ternation al security
36
program s will cost 390 dollars per
capita. Expenditures per cap ita for
all other program s com bined are
expected to decline from 153 dollars
in 1950 to 148 dollars in 1953, despite
the increase in average Governm ent
salaries and in the prices that the
Governm ent has to pay for the goods
it buys.
M oreover, som e of these
other program s— such as atom ic en
ergy
developm ent— contribute
d i
rectly to our nation al defense, and
have increased since 1950.
BUDGET EXPENDITURES
AS A PERCENTAGE OF NATIONAL INCOME
Percent
BUDGET EXPENDITURES
PER CAPITA
37
Direct Taxes
on I n d i v i d u a l s
Direct Taxes
on C o r p o r a t i o n s
Excise
Taxes
30.7
27.5
9.6
Estim ated
in b i l l i o n s
of dollars
C u s t o m s and
N e w Taxes
Other Taxes and Borrowing
3.2
FEDERAL BUDGET
14.4
♦Excludes
new tax
proposals
R e c e ip ts ................$71.0*
E x p e n d itu re s . . . 85.4
D e fic it...................14.4*
IS S 4
E ducation
and H o u s i n g
1.3
Agriculture
G e n e r al G o v e r n m e n t
1.5
1.5
Social Se cur i t y,
W e l f a r e a nd H e a l t h
Transport ation
and C o m m u n i c a t i o n
2.7
1.6
Vet er ans
Natur al Resources
4.2
3.2
International
10.8
—
38
Military Services
Int erest
51.2
6.3
—
APPENDIXES
U p to this point, this booklet has discussed receipts and expenditures
included in the Budget. Three other aspects of F ed eral financial operation s
are described in the appendixes which follow.
A ppendix A shows the receipts and expenditures of trust funds.
A ppendix B presents a sum m ary of the total cash transactions betw een
the Fed eral G overnm ent and the public.
A ppen dix C shows the relationship between authorizations to incur
obligations on behalf of the G overnm ent and B u d get expenditures for
the fiscal year 1953.
39
A P P E N D IX
A
TRUST FUNDS
M ost of the financial transactions
of the G overnm ent are directly re
flected in B ud get receipts and ex
penditures.
Som e im p ortan t p ro
gram s,
however,
are
operated
through trust funds with the F ed
eral G overnm ent acting as trustee.
M oney held in trust by the G ov
ernm ent is not av ailab le for ordinary
G overnm ent expenditures. It m ay
be spent only for the special p u r
poses of the trust. T ru st fund m oney
in excess o f current spending require
m ents is invested largely in special
issues of G overnm ent bonds.
A t the end of the fiscal year 1951,
ab ou t 36 billion dollars in U nited
States securities was held by G overn
m ent trust funds. T h e receipts of
each trust fund in clude interest
earned on its investm ents in G overn
m ent bonds. T o ta l receipts of the
trust funds are currently higher than
expenditures, an d the funds are
accu m ulatin g betw een 3 an d 4
billion dollars a year.
Im p o rtan t p rogram s conducted
through trust funds in clude old-age
and survivors insurance, unem ploy
m ent insurance, railroad retirem ent,
Fed eral em ployees’ retirem ent, and
40
veterans’ life insurance.
T he old-age and survivors insur
ance program is financed prim arily
by a special payroll tax of one and
one-half percent each on covered em
ployers and em ployees. E x p en d i
tures from this trust fund are p a y
ments of pensions to retired workers
and benefits to their survivors.
T he railroad retirem ent fund and
the Federal em ployees’ retirem ent
fund are operated in a sim ilar
m anner.
T he unem ploym ent insurance trust
fund is financed by payroll taxes
which the States collect from em
ployers and transm it to the F ederal
Governm ent. T h e fu n d ’s expendi
tures consist m ostly of w ithdraw als
by the States to p ay unem ploym ent
com pensation benefits to workers.
G I insurance for veterans of W orld
W ars I and II is provided through
the
veterans’
funds.
life
R eceipts
insurance
trust
consist largely
of
prem ium s paid by those who are
insured, and expenditures are p ri
m arily paym ents to beneficiaries of
policyholders an d paym ents of d ivi
dends.
APPENDIX A
TRUST FUNDS
RECEIPTS AND EXPENDITURES
Fiscal Year 1953 Estimated
4
r
Billions of Dollars
5
Total Trust Fund
RECEIPTS ANO E X m ifflU tä S -i* Billions of ùothrs
ÀiiOtlter
Fiscal Year
Receipts
Expenditures
19 5 3 Est.
$8.8
$ 5.1
19 5 2 Est.
8.8
5 .2
19 5 1
7 .8
3 .7
19 5 0
6 .7
6.9
19 49
5 .7
3.9
19 4 8
6.5
3 .7
19 4 5
7 .1
1 .1
Trini Funsi*
41
APPENDIX B
RECEIPTS FROM AND PAYMENTS TO THE PUDLIC
Billions of Dollars
Fiscal Year 1953 Estimated
TOTAL RECEIPTS FROM THE PUBLIC
76.8
EXCESS PAYMENTS OVER RECEIPTS
TOTAL PAYMENTS TO THE PUBLIC
To show the total flow of money
between the public and the Federal
Government, a statement of “ receipts
from and payments to the public”
has been developed. This statement
has also been called the “ consoli
dated cash budget” and “ cash in
come and outgo of the United States
Treasury.”
The figures showing the total flow
of money between the Federal Gov
ernment and the public are useful
for many purposes, particularly in
helping to describe the economic
impact cf Federal financial trans
actions.
In order to derive the totals of
receipts from and payments to the
public, it is necessary to consolidate
Budget and trust fund transactions.
Transactions between Government
agencies and trust funds, such as
interest paid by the Treasury to
trust funds and the Government pay
ment to the civil service retirement
fund, are eliminated in this consolida
tion, since there is no cash received
from or paid to the public.
Certain other noncash transactions
are also eliminated in the consolida
42
^§10.4 4
87.2
tion. For example, interest which
accrues on savings bonds is counted
as a Budget expenditure at the time
of accrual. But the interest is not
paid in cash until the bonds are re
deemed. Hence, the consolidation
eliminates the interest accruals and
includes the interest paid at the time
of redemption.
The table below shows how the
totals of receipts from and payments
to the public are derived from Budget
receipts and expenditures.
Fiscal year 7955, estimated. In billions
Budget receipts....................................
Trust fund receipts.............................
Intragovernmental transactions. . . .
Seigniorage on silver..........................
$71.0
8.8
—2.9
—0.1
Total receipts from the public.
76.8
Budget expenditures..........................
85.4
Trust fund expenditures. . ...............
5.1
Intragovernmental transactions. . . . —2.9
Net accrued interest and other non
cash transactions.............................
0.4
Total payments to the public.
87.2
Excess of payments over receipts. . .
10.4
APPENDIX C
BUDGET AUTHORIZATIONS
RELATED TO EXPENDITURES
Federal agencies cannot spend
money or incur obligations requiring
the future spending of money without
prior authorization from the Con
gress. Such congressional authoriza
tion is usually made in the form of
appropriations.
There is a time lag between the
granting of authorizations and the
incurring of obligations. A further
time lag takes place between the in
curring of obligations and the making
of expenditures. As a result, ex
penditures in any one fiscal year
come in part from new obligational
authority granted for that year,, and
in part from authority granted in
prior years.
In the fiscal year 1953, it is ex
pected that nearly half of the 85.4
billion dollars of expenditures will
result from obligational authority
which was made available in prior
years. The remaining expenditures
will come from authorizations for the
fiscal year 1953.
The President recommended en
actment of 84.3 billion dollars of
authority to incur new obligations in
the fiscal year 1953. O f this amount
43.6 billion dollars would be spent
in 1953 and 40.7 billion dollars in
later years.
Because of the long lead-time in
volved in military production, the
time lag between obligational au
thority and expenditures is sub
stantial. For the three-year period
1951 through 1953, new obligational
authority is expected to exceed ex
penditures by 61 billion dollars. A
small part of this excess will be
unused authority which will be
turned back to the Treasury. Most
of it will become part of the unex
pended balances which will be spent
in the years after 1953.
43
BUDGET RECEIPTS AND EXPENDITURES AND PUBLIC DEBT
F iscal years 1915 through 1953
[In millions]
F iscal
year
T o tal
B u d get
receipts
T o tal
B u d g et
expen di
tu res
S u rp lu s
or
deficit
$683
762
1,100
3,630
5,085
6, 649
5, 567
4,021
3,849
3,853
3,598
3, 753
3, 992
3,872
3,861
4,058
3,116
1,924
2, 022
3,065
$746
713
1,954
12,662
18, 448
6, 357
5,058
3,285
3,137
2,890
2,881
2,888
2,837
2,933
3,127
3, 320
3, 578
4, 659
4, 623
6, 694
-$ 6 3
+48
-853
- 9 , 032
-1 3 , 363
+291
+509
+736
+ 71 3
+9 6 3
+7 1 7
+865
+ 1 ,1 5 5
+9 3 9
+73 4
+738
-4 6 2
- 2 , 735
- 2 , 602
- 3 , 630
191 5
191 6
1917_____
1918_____
1919_____
1920_____
1921_____
1922_____
1923_____
1924_____
1925_____
1926_____
1927_____
1928_____
1929_____
1930_____
1931_____
1932
1933_____
1934_____
1 E stim a te d .
P ublic
debt at
end of
year
$1,191
1,225
2, 976
12,455
25,48?
24, 299
23, 978
22,963
22,350
21, 251
20,516
19,643
18,512
17,604
16,931
16,185
16,801
19, 487
22, 539
27,053
Fiscal
year
T otal
B u d get
receipts
T o tal
B u d get
expen di
tures
S u rp lu s
or
deficit
$3,729
4,069
4,979
5,803
5,104
5, 264
7, 227
12, 696
22, 201
43,892
44, 762
40, 027
40, 043
42, 211
38, 246
37,045
48,143
62, 680
70, 998
$6, 521
8,494
7,756
6, 979
8,966
9,183
13, 387
34,187
79, 622
95,315
98,703
60, 703
39, 289
33, 791
40,057
40,156
44,633
70,881
85, 444
—$2, 791
—4, 425
- 2 ,7 7 7
- 1 ,1 7 7
- 3 ,8 6 2
-3 ,9 1 8
-6 ,1 5 9
-2 1 ,4 9 0
-5 7 , 420
-5 1 ,4 2 3
-5 3 . 941
-2 0 , 676
+754
+ 8 , 419
—1,811
- 3 , 111
+ 3 , 510
- 8 , 201
-1 4 ,4 4 6
1935.
1936
1937
1938
1939_____
1940_____
1941_____
1942_____
1943_____
1944_____
1945_____
1946_____
1947_____
1948_____
1949_____
1950_____
1951_____
1952 1 . .
1953 1 . .
P u b lic
d eb t at
end of
year
$28,701
33, 779
36, 425
37,165
40, 440
42,968
48, 961
72,422
136, 696
201, 003
258,682
269, 422
258, 286
252, 292
252, 770
257, 357
255, 222
260, 222
274, 922
D oes n ot include new tax proposals.
BUDGET EXPENDITURES BY FUNCTION
F iscal years 1944 through 1953
[In m illions of dollars]
F u n c tio n
1944
M ilita ry services « _____________________
In tern ation al secu rity an d foreign rela
tion s ° ____________________________ . . .
F in an ce, com m erce, an d in d u stry ______
T ran sp o rtation an d co m m u n icatio n ____
N a tu ra l resources_______________________
A griculture an d agricu ltu ral r e so u rc e s ...
L a b o r __________________________________
H ousin g an d com m u n ity d e v e lo p m e n t..
E d u c atio n an d general research ______
Social secu rity, w elfare, an d h e alth _____
V e teran s’ services an d b e n e fits________
G en eral go v ern m e n t. _________________
I n t e r e s t ______ . . . ___________________
R eserve for co ntin gen cies_______________
1945
1946
1947
1948
1949
1950
1951
1952 1953
(est.) (est.)
83, 766 84, 570 45,134 14,316 10,963 11,915 12, 281 20, 462 39, 753 51,163
245
18
4,306
333
1,203
225
308
88
1,013
745
801
2, 623
677
236
3,364
247
1,602
204
» 193
158
1,046
2,096
781
3,662
1,463
9
786
254
743
174
* 199
85
1,048
4, 416
897
4, 816
6, 541
112
546
628
1,243
194
348
66
1,314
7,381
1,283
5,012
4, 781
132
1,213
1,113
573
183
82
65
1,869
6,653
1,303
5,248
6, 459
127
1,600
1,536
2, 512
193
282
75
1,907
6, 725
1,006
5, 445
4, 805
213
1,703
1,624
2, 783
262
262
123
2, 214
6,645
1,094
5, 817
4, 727
176
1,685
2,051
650
228
602
115
2,380
5,339
1,209
5, 714
7,196
751
2,153
3,082
1,408
240
881
238
2, 679
5,165
1,353
5, 955
25
10,845
833
1,643
3, 237
1, 478
246
678
624
2, 662
4,197
1,484
6, 256
100
T o t a l_____________________________ 95, 675 98, 451 59, 626 38,983 34,179 39, 785 39, 826 45,338 70, 881 85, 444
A d ju stm en t to d aily T rea su ry sta te
m e n t. _____________
-3 6 0 +252 + 1 ,0 7 7 +305 -3 8 8 +2 7 2 + 3 3 0 - 7 0 5
T o tal B u d g e t ex pen d itu res_______ 95,315 98, 703 60, 703 39, 289 33, 791 40,057 40,156 44, 633 70, 881 85, 444
° M ilitary an d econom ic aid to foreign countries, now classified under “ In tern atio n al secu rity an d foreign
relatio n s,” w as inclu ded as “ M ilitary services” during the years 1941-47, when h eav y expenditures for these
pu rposes were being m ade u n der the L en d -Lease Act. On a gross basis (th at is, w ith ou t deductin g reciprocal
aid an d p ostw ar settlem en ts), aid p rovided under the Len d-Lease program totaled more th an 50 billion
dollars durin g the years 1941-47, an d reached a peak of about 16 billion dollars in 1944.
6 D edu ct, excess of rep ay m e n ts an d collections over expenditures.
N o t e —D etail may not add to totals because of rounding.
U. S. GOVERNMENT PRINTING OFFICE
O — 1952
F o r s a l e b y th e S u p e r i n t e n d e n t o f D o c u m e n ts, U . S. G o v e r n m e n t P r i n t i n g O ffice
W a s h in g t o n 2 5 , D . C. - P r ic e 20 c e n t s
44
EXECUTIVE
BRANCH
OF
THE
GOVERNMENT
--- ;--- 1
INTERSTATE
I
I TEMPORARY AGENCIES
* Serves also as the Director of the Mutual Security Agency
13?
@FedFRASER