Full text of Budget in Brief : Fiscal Year 1958

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The Federal Budget
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Executive Office
of the President
B U R E A U OF T H E B U D G E T




Fiscal Year

1958

Budget Summary

ÄNew Oblisational Authority




^Expenditures

The Federal Budget in Brief
for the fiscal year 1958
In m akin g p lan s for the com ing y ear, I h ave been guided b y the
follow ing n ation al o b jec tiv es:
1. P eace, ju stic e , an d freedom for our own and oth er peop les;
2. Pow erful arm ed forces to deter an d , if need be, to d efeat a g ­
gression;
3. A h ealth y and grow ing econom y w ith p rosp erity w idely sh ared ;
4. E n h an cem en t o f in d iv id u al o p p o rtu n ity and the well-being o f
all our people;
5. W ise con servation , d evelop m en t, an d use o f ou r g reat n atu ral
resources;
6. F isc a l in tegrity;
7. A w ell-balanced choice o f p ro g ram s a t hom e an d ab ro ad ; and
8. In creasin g in tern ation al trad e an d in vestm en t essen tial to the
grow th o f the econom ies o f the U n ited S ta te s and th e re st o f the free
w orld.
We have m ad e considerable p ro gress tow ard th ese goals. We will
continue th is progress in the y ears ah ead.
D

w ig h t

D. E

is e n h o w e r .

F ro m the B u d g e t M e ssage
Ja n u a r y 16, 1957




1

Introduction
T h e F e d e r a l B u d g e t i n B r i e f for the fiscal year 1958 summarizes
the budget recommendations which President Eisenhower sent to the
Congress on January 16, 1957. It includes summary financial data
for earlier years.
The budget for the fiscal year 1958 presents the financial plan and
program of the Federal Government for the fiscal year July 1, 1957,
through June 30, 1958. It also reports the expenditures for Govern­
ment activities in the fiscal year 1956 and the latest estimates for
1957.
The President presents his budget early in each session of the
Congress in order to provide comprehensive information on the use
of funds already appropriated by the Congress and on the activities
for which appropriations are requested during the current session.
By the time the fiscal year ends, 18 months after the budget is pre­
sented and well over 2 years after work on it was started, many
figures will inevitably have changed. The Congress may modify
some proposals, and international and domestic conditions may not
develop as the budget assumes. Also, the administration will
constantly seek new opportunities for economies.

2




Contents
Page
Part 1. B u d g e t S u m m ary...................................................................

5

Summary of the 1958 budget.......................................................
Budget expenditures by purpose..................................................
Budget receipts................................................. .............................
Authority to incur financial obligations......................................
Unexpended balances carried forward.........................................

6
7
9
11
12

Part 2. B udget Inform ation by F u n ction ...........................

15

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.......................................................................

16
18
20
22
24
26
28
30
32

Part 3. Supplementary In form ation......................................

35

Budget information by agency.....................................................
Trust funds......................................................................................
Federal public works........ .............................................................
Research and development...........................................................
Federal aid to State and local governments...............................
Federal credit programs................................................................
Receipts from and payments to the public................................
Public debt......................................................................................
Historical tables..............................................................................

36
38
40
42
44
46
48
49
50

G lossary

53

of




S elected B udget T erm s ..................................

3

The Budget Dollar
Where it comes from

W h e r e it will go

Interest

Corporation Income
T axe s

29 *

M a jo r
Ind ivid ual Income

Excise T axe s

N a tio n a l Security

T axes

59<t

5U

12*
O th e r

8<t

Debt Retirement 2 *

Fiscal Year 1958 Estimate

4




Part 1




Budget Summary

Part 1 of this booklet briefly sum­
marizes the significant totals in the
1958 budget—expenditures, receipts,
authority to incur financial obliga­
tions, and unexpended balances
carried forward. M ost of these
subjects are discussed in further
detail in parts 2 and 3.

5

Summary of the 1958 Budget
T h e
P r e s i d e n t ’ s budget pro­
poses that the Federal Govern­
ment spend $1.8 billion less than
its estimated revenue in the fiscal
year 1958.
The Government
spent $1.6 billion less than its
receipts in 1956 and expects to
have a surplus of $1.7 billion in
the current fiscal year. Over the
period of these 3 years, the public
debt will have been reduced by
more than $5 billion.
By spending less than its in­
come on well-balanced programs
and by using the resulting sur­
plus to reduce the public debt,
the Government practices pru­
dent financial management and
helps restrain the inflationary
pressures which often exist during
periods of full employment and
continuing economic growth.
These actions help to maintain

SUM M ARY

the purchasing power of the
dollar; that is, they help to avoid
sharp rises in the prices paid for
such things as food, homes, and
machinery.
To balance the
budget and to provide for a
strong national defense and other
necessary services, the President
has recommended that present
tax rates be continued for another
year. Although the President
recommends no general tax re­
duction now, he believes that
taxes are too high and should be
reduced as soon as a sound
budget policy will allow.
The budget receipts from taxes
and other sources are estimated
to be $73.6 billion in the next
fiscal year. From this income,
the 1958 budget provides for
expenditures totaling $71.8 bil­
lion.

BUDGET

[Fiscal years.

Description

INFO RM ATIO N

In billions]
1953
actual

1954
actual

1955
actual

1956
actual

1957
esti­
mate

__ __ ______ 364.8 364.7 360.4 368.1 370.6
Budget receipts____
Budget expenditures_____ _ _________ 74.3 67.8 64.6 66.5 68.9
Budget surplus (-f ) or deficit (—)- - 9 . 4

- 3 .1

- 4 .2

80.3

62.8

57.1

+ 1 . 6 + 1.7

1958
esti­
mate

373.6
71.8
+ 1.8

70.5

73.3

Total authority available (including
amounts carried forward—see page 11)_ 179.5 168.8 148.5 143.1 143.9

143.3

New authority to incur obligations_____

6




63.2

Budget Expenditures by Purpose
O f t h e $71.8 billion estimated
to be spent by the Federal G ov­
ernment in the fiscal year 1958,
almost two-thirds will be used to
deter and protect against aggres­
sion. Nearly one-fourth will go
for civil benefits. Ten percent
will be used to make interest p ay ­
ments on debts owed by the
Government. The remaining 3
percent will be for civil operations
and administration and for con­
tingencies which may develop
during the year.
Protection, including collective
security.—T he G o v ern m en t’s
spending for major national se­
curity and closely associated pro­
grams is estimated to be $45.3
billion in the fiscal year 1958.
The bulk of this amount—$38
billion—will be used for the mili­
tary functions of the Department
of Defense. These defense ex­
penditures are estimated to be $2
billion higher than in the current
fiscal year because the modern jet
aircraft, naval ships, guided mis­
siles, and other new weapons are
considerably more costly to pro­
duce, operate, and maintain than
are the less powerful weapons
they are replacing.
Approximately $2.6 billion, the
same as in the two preceding
years, will be spent in the fiscal
year 1958 for military assistance
extended by the United States
through the mutual security pro­




gram to the armed forces of other
countries.
The budget provides for $2.3
billion of expenditures by the
Atomic Energy Commission in
the next fiscal year; this amount
is 20 percent greater than the
estimate for 1957. The Commis­
sion will use these funds both for
increasing the numbers and kinds
of nuclear weapons available to
our military forces and for devel­
oping the peaceful uses of atomic
energy in this country and
abroad.
Other programs related to the
Nation’s protection—the eco­
nomic and technical assistance
portion of the mutual security
program, international informa­
tion activities, stockpiling of
strategic materials, civil defense,
and the Selective Service Sy s­
tem—will account for expendi­
tures estimated at $2.4 billion
for the fiscal year 1958.

Bilik*»

C iv il Benefits
$ 1 6 .9
Protection
Interest

$ 4 5 .3

$ 7 .4

OA»
$ 2.2
Fiscal Y ear 1958 Estimate

7

Civil benefits.—The Nation’s
economic and social progress is
determined primarily by indi­
viduals and private enterprises,
supported by their State and
local governments. The Federal
Government also makes an im­
portant contribution to national
progress by helping to improve
economic opportunity, by helping
to provide safeguards against
economic and physical hazards,
and by helping to build needed
public assets. Budget expendi­
tures for such civil benefits,
many of which are administered
through State and local govern­
ments, are expected to be $16.9
billion in the fiscal year 1958.
Part of the budget expendi­
tures for benefits, such as those
for loans or public works, will add
to federally owned assets. In
1958, spending for these assets is
estimated to be $411 million
higher than in 1957. Most of
the loans will be made by the
Export-Import Bank, the H ous­
ing and Home Finance Agency,
and the Department of Agricul­
ture. Civil public works projects
will be undertaken by the Corps
$ Billions
Additions to Federal Assets
Long-Range Development
I H

\

H

I H

I H

l i

Current Expenses for Civil Benefits

'

8




of Engineers, the Bureau of
Reclamation, and numerous other
Federal agencies.
Budget expenditures in 1958
for other civil benefits which will
aid in the long-range develop­
ment of the Nation are expected
to be $510 million more than in
1957. These include grants to
States and local governments for
new schools; for hospital and for
airport construction; payments
to farmers for agricultural con­
servation; and certain expendi­
tures for education and research.
In addition to the payments for
long-range development which
are included in budget expendi­
tures, grants of $1,654 million
for highways will be paid to the
States from a trust fund which,
by law, is separate from the
budget. The receipts of this
trust fund are from special taxes
on motor fuels, tires, and vehicles.
Civil benefits also include such
current expenses as merchant
marine operating subsidies, serv­
ices and benefits to veterans, and
public assistance. While some of
these current expenses are ex­
pected to increase in the fiscal
year 1958, the total is estimated
to decline $564 million to $11.1
billion. The expenditures for
the Post Office Department to be
met from the general revenues of
the Treasury have been projected
at a sharply reduced rate in 1958,
in keeping with the President’s
recommendation that the Con­
gress enact legislation to adjust

B U D G E T E X P E N D IT U R E S B Y P U R P O SE
[Fiscal years.

In billions]
1953
actual

Description

1954
actual

1955
actual

1956
actual

1957
esti­
mate

Protection, including collective security._ 352.2 348.3 342.7 342.4 342.7
Civil benefits
_
__ _
- - 13.4 11.4 13.7 15.3 16.5
7.3
6.6
6.5
6.4
6.8
____ Interest
_ ___
2.1
1.7
2.0
2.5
1.6
Civil operations and other____ _ _ _ _
Total__ __

_

______

postal rates so that the Post
Office will be more nearly on a
pay-as-you-go basis.
Interest.—Interest payments on
money borrowed by the Federal
Government are estimated to in­
crease $100 million in the coming
fiscal year as a result of the rise
which has already occurred in the
market rates of interest. These
payments are expected to require
expenditures of $7.4 billion in
1958.
Civil operations and other. —
Expenditures for law enforce­
ment and regulatory activities,
tax collection, the legislative and
judicial functions of the Federal
Government, Federal responsi­
bilities for the District of Co-

74.3

67.8

64.6

66.5

68.9

1958
esti­
mate

345.3
16.9
7.4
2.2
71.8

lumbia and the territories and
possessions, maintenance and
operation of Government build­
ings, and certain other govemmentwide operations are esti­
mated to total $1.8 billion in the
fiscal year 1958.
The 1958 expenditure esti­
mates also include $400 million
as an allowance for contingencies
which may arise during the com­
ing fiscal year and for certain
proposed new legislation for
which the timing of expenditures
is uncertain. This allowance is
not an appropriation request.
Before any of it may be spent,
specific appropriation requests
will be made and the Congress
must act favorably on them.

Budget Receipts
S i n c e the major tax reductions
and reforms of the calendar year
1954, budget receipts have risen
each successive year as the N a­
tion’s economy has continued to

414155 0 — 57 ------ 2




grow. This trend is estimated to
continue in the fiscal year 1958,
with resulting budget receipts of
$73.6 billion, an increase of $3
billion over 1957.
9

B U D G E T R E C E IP T S
[Fiscal years.

1953
actual

Description

Individual income taxes.
Corporation income taxes
Excise taxes.. _
All other receipts _ _
T o t a l . . ___

_

_ _ __ _ _____

These receipts are expected to
be sufficient to cover the expenses
of carrying on the Government’s
activities in 1958 and to provide a
modest surplus with which to
reduce the national debt. By
living within its current income,
the Government avoids obligat­
ing the taxpayers for the interest
charges and principal of a larger
debt in the future. By gradually
reducing the debt already in­
curred, the Government helps
maintain the purchasing power
of the dollar during the present
economic expansion with its ac­
companying inflationary pres­
sures.
The largest source of receipts
is taxes on individual and corpo­
rate incomes. With the continu­
ation of the present corporation
tax rates for 1 year as recom­
mended by the President, income
taxes are expected to yield 80
percent of the Government’s
budget receipts in the fiscal year
1958. An additional 12 percent
will come from excise taxes,
10




In billions]
1954
actual

1955
actual

1956
actual

1957
esti­
mate

1958
esti­
mate

330.1 329.5 328.7 332.2 335.2
21.2 21.1 17.9 20.9 21.0
9.9 10.0
9.1
9.1
9.9
5.3
3.6
4.1
4.7
5.1
64.8

64.7

60.4

68.1

337.5
21.6
8.7
5.8

70.6

73.6

assuming they are also continued
at their present rates for a year
beyond the current expiration
date of April 1, 1957, as the
President has recommended.
The remaining 8 percent of
receipts is expected to be raised
from such other sources as estate
and gift taxes, customs, repay­
ments and interest on loans,
earnings of certain Government
enterprises, rents, fees, and sales
of timber, power, and surplus
property.

Billion*
Corporation
Income T axe s

$21.6
Individual
Excise T axes

Income T axe s

$ 8 .7

$ 3 7 .5

$ 5 .8

GMier
Fiscal Year 1958 Estimate

Authority to Incur Financial Obligations
P
funds may be spent
only upon specific authorization
by the Congress. Under such
authorization, Government agen­
cies may incur financial obliga­
tions by hiring workers, ordering
supplies, and entering into con­
tracts and may draw from the
Treasury to pay these obligations
when services are performed or
goods are delivered. This au­
thority usually takes the form of
appropriations, but it may also
take other forms. For example,
the Congress in some instances
authorizes agencies to enter into
contracts and then later votes
appropriations to pay for the
work done under the contracts.
The total amount available to
Government agencies in any par­
ticular fiscal year consists of the
appropriations and other new
obligational authority approved
by the Congress for that year
plus the still unspent authority
carried over from prior years.
Together, the new and old obliga­
tional authority which will be
available for expenditure in the
fiscal year 1958 are estimated to
be $143.3 billion. Nearly half
of this amount will be authority
enacted by the Congress for prior
years and still available for
expenditure in 1958.
From the available $143.3 bil­
lion, budget expenditures to be
u

b

l i c




made in 1958 are estimated at
$71.8 billion. Approximately
$47.9 billion of the expenditures
will go to pay for obligations in­
curred under the new authority
enacted for 1958. These obliga­
tions will be for such items as
salaries earned and benefits paid
during 1958 and for supplies and
equipment which are both ordered
and delivered in that year.
The rest of the expenditures,
$23.9 billion, will be mainly for
construction and for major mili­
tary equipment such as jet bomb­
ers and naval ships which were
ordered under obligational au­
thority enacted in prior years but
which will not be delivered until
1958. Similarly, part of the new
obligational authority enacted for
the fiscal year 1958 will be
committed to procure such items
as new guided missiles and to con­
tract for new buildings which will
be completed perhaps 2 or 3
years hence.
Because obligational authority
foreruns expenditures, it is neces­
sary to exercise control over the
amount of new authority voted
for Government agencies in order
to keep expenditures within re­
ceipts. If in any year the Gov­
ernment obligates itself to pay
more money than it is receiving,
it is courting future deficits.

11

Total Authorizations A v a ila b le in 1958 - Estimate

New O b lig atio n al
A u th o rity for 1958

B alan ce
brought into 1 9 5 8 .

Each year since 1953 the execu­
tive branch has kept its annual
recommendations to the Congress
for new obligational authority
within the limits of its expected
receipts. The budget proposes

that this policy be continued in
the fiscal year 1958. The total
new obligational authority rec­
ommended for 1958 is $73.3
billion, $279 million less than
anticipated receipts.

Unexpended Balances Carried Forward
B a l a n c e s of appropriations
and other obligating authority
carried forward from one fiscal
year to the next represent author­
ity to draw on the Treasury as
needed to pay bills; they are not
cash on hand. The total of such
balances carried forward into the
fiscal year 1958 is estimated to be
$70 billion.

12




In some cases such as the Fed­
eral Deposit Insurance Corpora­
tion, which insures deposits in
private banks, the unspent bal­
ances represent standby or
emergency obligational author­
ity which the Government does
not anticipate having to exercise
in the foreseeable future. How­
ever, the major part of the un­

U N S P E N T B A L A N C E S C A R R IE D FO RW A RD AT EN D O F Y E A R
[Fiscal years.

Description

In billions]
1953
actual

1

1954
actual

1955
actual

1956
actual

1957
esti­
mate

378.4 367.7 352.1 346.0 346.4
Appropriations._ __ _
_ _
Other:
Authorizations to spend from debt
__ __ _ - - — 20.2 21.1 19.5 18.3 18.6
receipts. __
2.5
2.5
2.6
4 .0
1.0
Contract authorizations..- _ — 2.9
5.4
4 .0
1.7
4 .6
Revolving and management funds----Total_______

___ _

—

- - 102.8

94.2

79.6

72.9

70.0

1958
esti­
mate

347.3

17.7
1.3
4.2
70.5

1 See glossary for definitions of items.

spent balances which are brought
forward into a particular fiscal
year are balances of appropria­
tions for programs currently
underway.
At the present time, most of
the unspent balances of appro­
priations are obligated; they are
committed to pay bills already
owed by the Government or bills
which will come due upon com­
pletion of contracts already signed.
In order to diminish the upward




pressure on the annual rate of
spending exerted by these unspent
balances of appropriations, the
present administration has acted
to reduce their size to the extent
sound management allows. They
will have been reduced from $78.4
billion at the close of the fiscal
year 1953 to an estimated $47.3
billion by the end of 1958, having
reached a low point of $46 billion
at June 30, 1956.

13

The 1958 Budget

1958 Estimated Receipts-$73.6 billion

1958 Estimated Expenditures - $71.8 billion
it 1
W
III) h '
■mu

■[TTTTÏÏ
T rin ili
1111ITT
ill 111 *
m i l l ' ” I m im
Itn rr* ~ . m ill

37.5 Individual Income Taxes

21.6 Corporation Income Taxes

8.7 Excise Taxes

5.8 A ll Other Receipts

14




U luli
TTTTITJ
Minili)

43.3

■1
■
■
is :
1
1
1
1
1

M ajor National Security

74

Interest

5.0 Veterans
5.0 Agriculture
3.5 Labor and W elfare
2.4

International

1.8 Commerce and Housing
1.5 Natural Resources
1.5 General Government
.4

Allowance for Contingencies

Part 2




Budget Information by Function
Part 2 of this booklet groups esti­
mated budget expenditures by the
nine major functions used in the
President’s analysis of the budget,
which accompanied his budget mes­
sage lo the Congress.
The charts in this section show
the 1958 estimates for the programs
within each major function. Budg­
et expenditures for these same pro­
grams over a 6-year period are
shown on pages 50 and 51 of this
booklet.

15

I.

Major National Security
$43,335 m illion . . . 60.3% of the 1958 budget

O
services collec­
tively have four basic missions:
(1) to maintain ready nuclear-air
retaliatory forces designed to de­
ter a potential aggressor from
attack; (2) to build a defense
system which will minimize the
chances of possible attack on this
continent being successful; (3)
to maintain mobile, versatile
armed forces ready for immediate
action in case of aggression
against the free world; and (4)
to maintain control of sea areas
and lines of communication in
case of war.
New weapons constantly affect
both the means of accomplishing
these missions and the size of the
military budget. Expenditures
for the military functions of the
Department of Defense in 1958
are estimated at $38 billion, $2
billion more than 1957.
Over one-fourth of the esti­
mated increase will be for guided
missiles. Expenditures for ship
construction will rise $112 mil­
lion. Aircraft procurement will
be at about the same level.
Other procurement expenditures
will decline $54 million.
Some 2.8 million men and
women will be on active duty in
u

r

m

i l i t a r

16




y

the fiscal year 1958. The Army,
Navy, and Marine Corps will
hold to about their current num­
bers; Air Force strength will in­
crease by several thousand men.
Operation and maintenance
costs are expected to rise $498
million, because of the larger
number of bases and the growing
complexity of new weapons.
Military public works will pro­
vide new facilities for continental
defense, improved and dispersed
heavy bomber bases, and other
essential construction in the
United States and overseas. The
reserve forces will be improved
through modernization of equip­
ment and better selection and
training of personnel.
Thirty-eight countries now re­
ceive military equipment and
training from the United States
under the mutual security pro[In millions]
Fiscal year

Budget ex­
penditures

1 9 5 8 e s t __________

3 4 3 , 335

3 4 3 ,6 0 0

1 9 5 7 e s t ________

4 0 ,9 6 5

40, 366

1 9 5 6 ______________

4 0 ,6 4 1

3 5 ,9 0 3

1 9 5 5 ______________

4 0 ,6 2 6

33, 656

1 9 5 4 ______________

4 6 ,9 0 4

3 8 ,9 0 1

1 9 5 3 ______________

50, 363

5 7 ,2 9 8

New
obligational
authority

Major National Security
Budget Expenditures in 1958—Estimate

Department of Defense

$ m lu o ns

■■■

12,273

Purchase of A ircraft, Ships, G uided M issiles, and Other M ilitary Equipment

Pay and Support of A ctive Duty M ilitary Personnel
9,598
Operation and Maintenance of Equipment and Facilities

_____
M ilitary Public Works, Research, Reserves, and Other

2,600

Military Assistance
2,340

Atomic Energy
395

Stockpiling and Defense Production

gram. This military assistance
is related to our own military
plans and will provide other
countries with newer types of
weapons, particularly for air de­
fense. An increased proportion
of military assistance equipment
is to be sold rather than delivered
on a grant basis.
Atomic Energy Commission
expenditures in 1958 for both
military and peaceful purposes
are estimated to rise $400 million.
The major portion of this in­
crease will be applied to the
procurement of uranium ore and

the development and production
of nuclear weapons.
The budget also provides for
developing (1) new uses for
atomic energy in biology, medi­
cine, agriculture, and industry,
and (2) the basic reactor technol­
ogy needed for progress toward
competitive atomic power.
For the fourth successive year,
net expenditures for expansion of
defense production and the stock­
piling of strategic and critical
materials are expected to de­
crease. Materials already in the
stockpile are valued at well over
$6 billion.
17

4 14 15 5




0 — 5 7 ------------3

II.

International Affairs and Finance
$2,444 million . . . 3.4% of the 1958 budget

and technical assist­
ance to other countries is carried
on primarily through the mutual
security program under the direc­
tion of the International Cooper­
ation Administration in the D e­
partment of State. This assist­
ance helps other countries
strengthen their economies and
meet the economic burdens of
maintaining adequate military
forces.
Expenditures for this portion
of the mutual security program
will be moderately higher in 1958
than in the current fiscal year.
A significant part of the outlays
will be in the form of loans. Part
of the mutual security expendi­
tures will be for our share of the
cost of programs conducted by
the United Nations and other
international organizations.
The 1958 estimates for the
mutual security program also
include spending of the addi­
tional funds for the Middle East
requested by President Eisen­
hower. While the specific forms
of this assistance must be agreed
upon with the recipient countries,
it is anticipated that a part would
be for economic and technical
development.
E c o n o m ic

18




Export-Import Bank loans to
finance United States exports also
contribute importantly to the
economic development of other
countries. Net expenditures by
the Bank have increased in the
current fiscal year. This has oc­
curred as new development loans
for countries in Latin America
and in Southeast Asia have been
negotiated and as competing de­
mands for money have caused
estimates of private participa­
tion in the Bank’s loans to de­
cline. Also, the Bank recently
announced a substantial line of
credit against pledged securities
to the United Kingdom for the
purchase of United States prod­
ucts.
Expenditures for the conduct
of foreign affairs are expected to
be about 25 percent greater in
[In millions]

Fiscal year

1958 est_______
1957 est_______
1956__________
1955__________
1954__________
1953__________

Budget ex­
penditures

32,444
2,382
1,846
2,181
1,732
2,216

New
obligational
authority

32,460
2,233
2,123
2, 304
1,838
2,149

International Affairs and Finance
Budget Expenditures in 1958—Estimate
$ MILLIONS

Foreign information and Exchange Activities

1958 than in 1957. The Depart­
ment of State is strengthening the
Foreign Service both in Washing­
ton and overseas in accordance
with the recommendations of the
Secretary of State’s Public Com­
mittee on Personnel. Progress
is also being made on construc­
tion of a major addition to the
D e p a rtm e n t’s h e a d q u a rte rs
building in Washington which
will put in one place the person­
nel working in 30 separate
buildings.
Confronted with an intensified
worldwide conflict of ideas, the




United States has increased its
information and personal ex­
change programs throughout the
world. Expenditures for these
programs carried on by the
United
States
Information
Agency and the Department of
State have risen since the fiscal
year 1954 and are expected to be
$174 million in 1958. Expansion
of information activities in Asia
and Africa and extension of
United States participation in
cultural programs and trade fairs
will be given particular emphasis
in the coming fiscal year.

19

III.

Commerce and Housing

$1,748 million . . . 2.4% of the 1958 budget

To k e e p pace with the rapid
growth of air traffic and the need
for traffic control, substantial
increases are recommended in
the 1958 budget for new equip­
ment and for the expenses of
operating the Federal airways
system. Other expenditures for
aviation cover grants to help
finance local airport construction,
research, and subsidies paid to
airlines.
The Government encourages
the purchase and construction of
private housing through insur­
ance and guaranties of private
loans and through purchases of
mortgages for groups having spe­
cial difficulties in obtaining home
financing. In addition, more
than 500 urban renewal projects
will be in various stages of plan­
ning and construction in 1958
with Federal assistance. Local
agencies will also be helped to
F I S C A L

Y E A R

1958

E S T I M A T E D

finance 35,000 low-rent public
housing units.
Subsidies and other aids are
provided by the Maritime Ad­
ministration (1) to offset the dif­
ference in operating costs between
American and foreign ships on
essential foreign-trade routes, and
(2) to help ship operators finance
replacement of older merchant
ships and thus keep American
shipbuilding and merchant ma­
rine industries sound. The Coast
Guard provides navigation aids,
trains reserves, and carries on
other activities to develop and
maintain water transportation.
New legislation enacted last
year will provide Federal indem­
nities to help meet losses arising
from flood damage.
Larger appropriations are rec­
ommended for 1958 to improve
civil defense, particularly in met­
ropolitan areas.
G R O S S

A N D

N E T

E X P E N D I T U R E S

[In millions]
Program

Gross ex­
penditures

Applicable
receipts

N et ex­
penditures

Aviation _ ___ ___ ___ ____ ________________
Housing and community development______ ____
Water transportation__ ____ _________________
Civil defense and disaster aids_
.................... —
Postal service____________ ______ _____ _______
Highways (excluding trust fund)........ .....................
General aids to business and other__............ ..........

3465
2,093
527
183
3, 354
42
240

0)
31,655
107
15
3, 296
83

3465
438
420
168
58
42
157

Total.............................. .................... ........... .

6,904

5,156

1, 748

1 Less than one-half million dollars.

20




Commerce and Housing
Budget Expenditures in 1958— Estimate

Adjustments in postal rates
of approximately $650 million
were recommended by the Presi­
dent to reduce the estimated
postal deficit and to make the
Post Office as nearly as possible
a self-supporting enterprise. If
these adjustments are enacted,
additional appropriations are to
be recommended for equipment.
The direct budget expenditures
shown for highways are limited
to Federal construction of roads
in the national forests and on
other public lands.
Reduced availability of private
credit has led many small busi­
nesses to request Government




loans. The President proposed
extension of the Small Business
Act beyond its expiration date
of June 30, 1957. A program to
aid redevelopment of depressed
areas was also recommended.
[In millions]
Gross
expendi­
tures

Net ex­
pendi­
tures

1958 est___ 36,904
1957 est___ 6,574
1956______ 5,958
1955______ 6,018
1954______ 6,397
1953______
7, 267

31, 748
2,269
2,028
1,502
814
2, 502

Fiscal year

New obligational
authority

32, 791
3,992
4, 526
2,815
2,374
3,486

21

IV .

Agriculture and Agricultural
Resources
$4,965 million . . . 6.9% of the 1958 budget

A
programs of the
Federal Government are intended
to facilitate improvëments in the
production and marketing of
farm products and to help farm
families share the benefits of the
Nation’s continued economic
growth. Net expenditures for
agricultural purposes in the fiscal
year 1958 are estimated to be
$264 million higher than in 1957.
Net expenditures for the price
support operations of the Com­
modity Credit Corporation are
expected to be reduced in 1957
and 1958 from the fiscal year
1956 level. However, the re­
duction will be more than offset
g

r

i c

u

l t u

F I S C A L

r

a l

Y E A R

1958

E S T I M

A T E D

by increased expenditures under
the soil bank and other agri­
cultural programs.
The new soil bank has two
parts. Under the acreage re­
serve program, farmers are com­
pensated for loss of income
resulting from voluntary with­
drawal of land from crop pro­
duction. Under the conservation
reserve program, they receive
rent for cropland placed in cover
crops and reforestation and also
receive payments to share the
cost of adopting conservation
practices.
Substantial Federal expendi­
tures are also being made for
G R O S S

A N D

N E T

E X P E N D I T U R E S

[In millionsl

.........
Farm price support and related programs
Soil bank (including conservation practice pay­
ments)_____ _ . ______ ___ _____ ___ _____
Agricultural land and water resources...... ....... ......
Farm ownership and operation loans 1....................
Rural electrification and rural telephone loans___
Research and other agricultural services......... ......
Total.

........ ............ ...................................

Gross
expendi­
tures

35,564
1,293
366
356
265
280
8,124

Applicable
receipts

N et expendi­
tures

33,074

32,490

! 1 oo 1
! ! ^ !

Program

3,159

1 Applicable receipts are mainly from sales of commodities and repayments on loans.

22




1,293
366
271
265
280
4,965

Agriculture and Agricultural Resources
Budget Expenditures in 1958—Estimate

other programs to develop agri­
cultural land and water resources.
These include the regular agri­
cultural conservation program of
the Department of Agriculture,
special conservation activities for
the Great Plains authorized by
the Congress last year, technical
assistance from the Soil Conser­
vation Service, and aid to local
projects under the Watershed
Protection and Flood Prevention
Act of 1954.
Provision is made in the budget
for additional loans by the Farm­
ers’ Home Administration to re­
finance farm debts, to assist




farmers suffering from drought,
to help meet the credit needs of
owners of farms of less than
family size, and to satisfy other
farm credit needs.
[In millions]
Gross
expendi­
tures

Net e x­
pendi­
tures

1958 est___ 38,124
1957 est___ 9, 560
1956______ 9,060
1955______ 9,324
1954______ 7,497
1953______ 6,448

34,965
4,701
4,913
4,411
2,557
2,936

Fiscal year

New obligational
authority

34, 792
5,096
3,310
2,672
4,010
1,333

23

V.

Natural Resources
$1,538 m illion . . . 2.1% of the 1958 budget

R
development is vital
to the continued strength of our
country and should be the re­
sponsibility of every citizen. It
can best be accomplished through
appropriate cooperation among
private groups, State and local
governments, and the Federal
Government. Federal expendi­
tures for natural resources in the
fiscal year 1958 are estimated to
be $167 million more than in
1957, mostly for activities already
authorized by the Congress.
The Corps of Engineers and the
Bureau of Reclamation will con­
tinue work on 299 going projects
for flood control, navigation, and
irrigation in the fiscal year 1958;
some of these have water supply
and power features. Construc­
tion of 38 of these projects will
be completed in 1958. The
budget also provides funds for
these agencies to start on a mod­
erate scale some new Federal
projects and to participate with
State and local groups in partner­
ship water resource projects.
Construction on the Saint Law­
rence Seaway will go forward in
1958. The budget proposes addi­
tional borrowing authority for
the Saint Lawrence Seaway Cor­
poration to meet increased con­
e s

o

u

r

c

e

24




struction costs and to perform
more dredging work.
The Tennessee Valley Author­
ity will continue work on addi­
tional steam-electric generating
units started in 1956 and 1957.
Pending a thorough review of fu­
ture power needs, the 1958 budg­
et includes $30 million under
proposed revenue-bond legisla­
tion for TVA to construct an­
other new unit at an existing
steam plant in order to meet
power needs expected to develop
in the area by the end of the
calendar year 1960.
In the fiscal year 1958, soil
conservation work will be in­
creased on the lands in the
national forests and parks, in the
public domain, and on Indian
lands. Also, the budget provides
for necessary construction of
schools for Indians.
[In millions]
Fiscal year

1958 est_______
1957 est_______
1956__________
1955__________
1954__________
1953__________

Budget
expenditures

$1,538
1,371
1,104
1,202
1,315
1,476

New obligational
authority

? 1 ,559
1,391
1,213
1,070
1,398
1,503

Natural Resources
Budget Expenditures in 1958— Estim ate

Our national parks, national
forests, and fish and wildlife
resources offer recreational op­
portunities for many millions of
our citizens. The 10-year de­
velopment program begun by
the National Park Service in the
current fiscal year is being under­
taken to meet the needs of an
estimated 80 million visitors to
the parks in 1966. Also, addi­




tional campgrounds, picnic areas,
and other facilities will be built
in the national forests.
The Department of the Inte­
rior will assist commercial fish­
eries to improve their competi­
tive position and will help
segments of the mining indus­
try to adjust from defense
demands to normal market con­
ditions.

25
4 14 15 5

0 — 5 7 ------------ 4

VI.

Labor and W elf are
$3,538 m illion . . . 4.9% of the 1958 budget

O b je c tiv e s
o f the G o v ern ­
m en t’s lab or an d w elfare p ro ­
gram s are to increase in dividu al
op p ortu n ity an d provide sa fe ­
gu ard s a g a in st econom ic an d
h ealth h azard s while fosterin g
self-reliance.
O f the $3.5 billion estim ated
b u d g et exp en d itures for these
p ro gram s in the fiscal y ear 1958,
80 p ercent are to be in the form
o f gran ts-in -aid to S ta te an d local
governm en ts. In ad d ition , e sti­
m ated benefit p ay m en ts o f m ore
th an $10 billion will be m ad e b y
the F ed eral social in surance and
retirem en t tru st funds. A large
p a rt o f all these exp en d itures is
for the aged.
P ublic assistan ce g ran ts to
S ta te s in 1958 will help finance
p ay m en ts to 5 m illion p erson s—

m o stly p erson s over 65 an d d e ­
p en d en t children.

E x p en d itu res

p ollu tion are e stim ate d a t $162
m illion. O ther p u blic h ealth e x ­
p en d itu res are to (1) a ssist S ta te s
an d localities in p rovid in g co m ­
m u n ity h ealth services, including
those for the aged , (2) p rovid e
h ealth services for In d ia n s, and
(3) enforce the food and d ru g
law s an d carry on sim ilar a c ­
tiv ities.
T h e b u d g e t includes the 1958
cost o f th e legislation p rop osed
b y the P resid en t to com plete in
4 y ears general aid for school
con struction recom m ended a s a
5 -year p ro g ram la st y ear. I t
also in cludes the c o sts o f e x is t­
ing p ro g ram s for financial a s ­
sistan ce to local school d istricts
w here enrollm ents are s u b sta n ­
tially in creased b y F e d e ral a c ­
tiv ities, for v o catio n al e d u catio n
g ran ts, an d for ed u catio n al re ­
search an d services.

for th is p u rp ose include the co st

[In millions]

o f recent legislation which raised
the F e d e ral share o f these p a y ­

Fiscal year

Budget
expenditures

New obligational
authority

m en ts an d p rovid ed m ore a s s is t­
ance for m edical care.
R esearch will ta k e ab o u t oneth ird o f the exp en d itures for p r o ­
m otion o f p ublic health in 1958.
G ra n ts for h o sp ital con struction
an d for facilities to a b a te w ater

26




1958 est_______
1957 est_______
1956__________
1955__________
1954__________
1953__________

$3,538
3,032
2, 776
2,552
2,485
2,426

$3,799
3,196
2, 860
2,614
2,429
2,456

Labor and Welfare =
Budget Expenditures in 1958—Estimate

Gfcneral-purpose Research, Libraries, and Museums

School Lunch, Vocational Rehabilitation, and Other

The 1958 budget provides
support for the Federal-State
employment service and unem­
ployment insurance system. In
addition, it covers the new legis­
lation recommended to improve
occupational safety and increase
the coverage of the labor stand­
ards and unemployment compen­
sation laws.
Grants made by the National




Science Foundation to promote
basic research and training in the
sciences account for the largest
part of expenditures for generalpurpose research. Amounts are
also provided in the budget for
the Bureau of the Census, the
National Bureau of Standards,
the Smithsonian Institution, and
the Library of Congress.

27

V II.

V eterans Services and Benefits

$5,027 million . . . 7.0% of the 1958 budget

The compensation rolls are sta­
V e t e r a n s benefits and services
already account for nearly one- bilizing, while the pension rolls
fifth of all budget expenditures are rising and are expected to
other than for major national se­ continue to increase for many
curity. Federal spending for the years as veterans grow older.
wide range of aids and services
Hospital and medical care will
provided for our 23 million veter­ cost about $797 million in the
ans and for their dependents con­ fiscal year 1958. An additional
$3o million will be spent for re­
tinues to increase.
The President’s Commission placement and modernization of
on Veterans’ Pensions last year medical facilities. The operat­
recommended a number of ing expenditures will provide for
changes to adjust the veterans 122,500 beds in Veterans Ad­
programs to changing economic ministration hospitals, for 3,000
and social conditions. The Presi­ beds in contract hospitals, for care
dent has indicated that a special of 25,700 veterans in domiciliary
message outlining legislative pro­ homes, and for outpatient medi­
posals in this field will be sent to cal and dental care.
the Congress in the current
Education and training bene­
session. The 1958 budget in­ fits for veterans of the Korean
cludes $100 million under com­ conflict now constitute the largest
pensation and pensions to cover part of readjustment benefits.
the estimated additional cost of
[In millions]
these proposals.
Compensation benefits of al­
Budget
New obligaexpenditures
Fiscal year
tional
most $2 billion will be paid to 2.5
authority
million individuals and families
in 1958 for disability or death
$5,042
35,027
connected with military service. 1958 est_______
4,890
4,851
1957 est_______
Pensions totaling more than $1 1956__________
4, 823
4,756
billion will be paid to 1.2 million 1955__________
4,457
4, 369
4,272
4,256
veterans and families of veterans 1954__________
4,132
4,298
for disabilities and deaths riot re­ 1953__________
sulting from military service.

28




Veterans Services and Benefits.
Budget Expenditures in 1958—Estimate
$ MILLIONS
3,103

Readjustment Benefits for Unemployment, Loan Guaranty, and Other

Other Services and Administration

Average enrollment of this group
is expected to reach a peak in the
fiscal year 1957 and then drop
about 4 percent to 569,000 in
1958.
In the fiscal year 1958, the
Veterans Administration expects
to guarantee loans to 540,000
veterans for homes, farms, and
businesses. Budget expenditures
resulting from defaults on guar­
anteed loans are largely offset by




recoveries from the sale of prop­
erties. Under present law World
War II veterans will be able to
apply for loan benefits until
July 1958 and veterans of the
Korean conflict will continue
eligible until 1965.
Only those persons who entered
military service between June 27,
1950, and January 31, 1955, may
currently claim veterans unem­
ployment compensation.

29

V III. Interest
$7,360 million . . . 10.2% of the 1958 budget
I
rates paid on Gov­
ernment securities and the size
of the public debt determine the
amount of annual interest pay­
ments.
The public debt was reducedin the fiscal year 1956, and fur­
ther modest reductions are
expected in 1957 and 1958.
However, as a result of the active
competition for available credit,
interest payments are estimated
to increase, because the Treasury
is paying higher rates of interest
on the new public debt securities
issued to refinance maturing
securities.
The average rate paid on the
outstanding interest-bearing pub­
lic debt has risen during the
calendar year 1956 from 2.49 to
2.67 percent. Interest rates on
the public debt cannot be ex­
pected to decline substantially
until there is a more favorable
balance between the supply of
savings and credit, on the one
hand, and the total demand for
credit, on the other.
Interest payments on market­
able obligations, mainly held by
financial institutions, are over
one-half of all interest payments.
n

t e r

e s

t

30




Most of the estimated increase in
total interest expenditures for
the fiscal year 1958 is accounted
for by these obligations, since
the refinancing of short-term
maturities promptly
reflects
changes in market rates of in­
terest.
United States savings bonds
bear an interest rate that is
higher than the rate usually paid
on the total public debt and carry
favorable redemption privileges.
More than one-fifth of the in­
terest on the public debt is pay­
able to the investors who hold
these bonds, mostly individuals.
Special issues of nonmarketable securities are owned by
Government trust funds and cer­
tain Government corporations
which invest their reserves against
possible future claims. The in[In millions]
Fiscal year

1958 est___________ _____
1957 est_____ _ _ _ _ _ _ __
1956_____________________
1955_____________________
1954_____________________
1953_____________________

Budget ex­
penditures

$7, 360
7,260
6, 846
6,438
6,470
6, 583

Interest
Budget Expenditures in 1958—Estimate

Interest on Public Debt

$ MILLIONS

4,200
Marketable Obligations

Special h

300
Other Nonmorke+able Issues

I 60
Interest on Refunds and Uninvested Funds

teresl rate 011 a large portion o f
these issues is the average rate
for longer-term m arketab le secu ­
rities. F or a few special issues
the rate s are specified by law.
T h e C on gress does not m ake




an n u al ap p ro p riatio n s for in ­
te re st p ay m e n ts.
Since these
p ay m e n ts are fixed ob lig atio n s o f
the G o vern m en t, exp en d itu res
for in terest h av e been au th orized
b y p erm an en t law .

31

IX .

General Government
$1,451 m illion . . . 2.0% of the 1958 budget

G eneral government activi­
ties consist primarily of central
management operations, law
making, and law enforcement.

The Treasury Department car­
ries on the Government’s revenue
and debt management activities.
These activities include collecting
taxes and customs, managing the
public debt, writing most of the
checks to pay the Government’s
bills, and making the coins and
currency.
The 1958 budget provides for
continuing improvements in Fed­
eral buildings to protect them
against deterioration and to con­
tribute to working efficiency.
Some additional space will be
needed to eliminate overcrowding
in certain offices.
Expenditures for legislative
functions in both 1957 and 1958
include amounts for the addi­
tional office buildings that are
being built for the Senate and
the House of Representatives.
In addition, the Capitol is being
remodeled.
Accident and unemployment
compensation payments for Fed­
eral employees, together with
administration of the civil service

32




system, account for practically
all of the personnel costs not
separately allocated to other
major functions in the 1958
budget. Starting in 1958, the
Government’s payments as em­
ployer to the Federal employees
retirement fund will be included
as part of each agency’s payroll
costs. Previously this payment
has been made from a lump sum
appropriation to the Civil Service
Commission.
Recently enacted legislation
authorized an increase in the
payment made by the Federal
Government to help defray an­
nual operating costs of the Dis­
trict of Columbia government.
This increase plus the loans for
public works construction which
were authorized in 1954 are
[In millions]

Fiscal year

1958 est__ _ __
1957 est_______
1956__________
1955__________
1954__________
1953__________

Budget
expendi­
tures

$1,451
1,870
1,629
1,201
1,239
1,474

New obligational
authority

#1,438
1,851
1,595
1,138
1,074
1,368

General Government
Budget Expenditures in 1958—Estimate

D istrict of Columbia, Territories, onci Possessions

W eather Bureau and Other

expected to raise Federal expendi­
tures for the District to $43
million in 1958.
Under legislation enacted last
year, each agency now pays the
bills presented against its ex­
pired appropriations; formerly,




such claims were paid from a
single Treasury Department ac­
count. Payments for this pur­
pose are now distributed among
the several major functions
rather than included entirely
under general government.

33

Budget Expenditures
as a Percentage o f N a tio n a l Income
53%

Peak W a r Year

Pe r C a p ita

A ctu al Prices
Constant Prices'*

Peak W a r Y e a r^

$707

Fiscal
Years

1939

1945

"^"Adjusted to Decem ber 1956 W h o le sa le Prices

34




195 3

1 954

1955

1 956

195 7
1958
— Estimate —

Part 3




Supplementary Information
Part 3 of this booklet summarizes
budget information by agency. It
also presents summary data for cer­
tain Federal activities, such as
public works and aid to States and
local governments, which are com­
mon to many of the agencies and
are parts of the functions discussed
in part 2.
In addition, part 3 provides in­
formation on other aspects of Gov­
ernment financial operations, such
as the Federal trust funds and
credit programs, and includes his­
torical data on the public debt and
Federal receipts and expenditures.

35

Budget Information by Agency
New obligational authority by
agency.—For the most part, new
obligational authority consists of
appropriations made directly to
the individual Federal agencies.
In a few instances, such as the
mutual security program for
which major responsibility is
shared by two or more agencies,
appropriations are made to the
President and are then allocated
by him among the agencies.
The Department of Defense
will be granted more than half of
all new obligational authority
recommended for the fiscal year
1958. The next largest amount
is for the Treasury Department,
largely authority for paying in­
terest on the public debt. Other
agencies for which new obliga­
tional authority of more than $3
billion has been recommended for
1958 are the Department of Agri­
culture, the Veterans Adminis­
tration, and the Department of
Health, Education, and Welfare.
New obligational authority rec­
ommended by the President for
each of the major Federal agen­
cies for the fiscal year 1958 is
shown in the last column of the
table on the opposite page.
Gross and net expenditures by
agency.—In addition to the funds

36




they receive under appropriations
from the Congress, a number of
agencies engaged in business-type
operations collect funds—called
public enterprise receipts—direct­
ly from private individuals and
businesses. For example, the
Post Office Department collects
money from the sale of stamps
and other services, and the
Department of Agriculture re­
ceives reimbursements or pay­
ments for farm commodities it
disposes of or sells.
These agencies are authorized
to spend both their appropriated
funds and their applicable public
enterprise receipts. The true
scale of their activities, therefore,
can be measured by their gross
expenditures.
However, their
net expenditures, calculated by
subtracting the applicable re­
ceipts from gross expenditures,
are the amounts which directly
influence the size of the budget
deficit or surplus. Gross expend­
itures, applicable receipts, and
net expenditures which appear in
the 1958 budget estimates are
shown in the first three columns
of the table on the opposite page.
Receipts by the Post Office
Department are expected to be
more than one-third of the re-

E X P E N D IT U R E S

AND N EW O B LIG A T IO N A L
[Fiscal year 1958 estimate.

Agency

A U TH O R ITY B Y

A G EN C Y

In millions]
Gross
expend­
itures

Public
enterprise
receipts

3122
44
12

Legislative branch........ ............................................
7'he judiciary________________ _____ ________ _
Executive Office of the President..........................
Funds appropriated to the President:
Mutual security________________ _________ _
Other____________________ _____________
Independent offices:
Atomic Energy Commission_______________
Export-Import B a n k ._____________________
Tennessee Valley Authority--------------------Veterans Administration___________________
Other____________________________________
General Services Administration------------------Housing and Home Finance Agency-------------Department of Agriculture___________________
Department of Commerce---------- ---------------Departm ent of Defense:
M ilitary functions..................... ............ ...............
Civil functions____________________________
Department of Health, Education, and Welfare.
Department of the Interior------------------------Department of Justice------------------------------Department of Labor________________________
Post Office Department_______________ _______
Department of S tate--------- ----------------------Treasury Departm ent________________________
District of Columbia_________________________
Allowance for contingencies______ ____________

38, 031
784
2,834
737
226
422
3, 354
230
8, 149
43
400

T o tal_________________________________

81, 203

New obligational
authority

3122
44
12

.395
45
12

36
255

4, 356
89

4,4 0 0
35

2, 340
243
27
5,068
616
654
391
5, 330
772

2,520

427
282
118
112
3
1,546
3, 151
29

45
4,9 9 0
799
447
1,194
5,158
944

38,000
700
2, 831
704
226
418
58
230
8, 132
43
400

38, 500
703
3, 071
718
235
438
67
230
8,154
42
500

71, 807

73, 341

4, 363
344
2, 340
670
310
5,186
728
657
1,937
8, 481
801

Net ex­
penditures

0)

31
85
3
32
4
3, 296
16

9, 396

1 Less than one-half million dollars.
N o t e . — Detail

may not add to totals because of rounding.

ceipts of all public enterprises in
the fiscal year 1958. Postal re­
ceipts are estimated to be higher
in the coming fiscal year than in
1957, mainly because of the ad­
justments in postal rates recom­
mended by the President to
cover more nearly the costs of
providing postal service.
The next largest amount of
enterprise receipts is estimated




for the Department of Agricul­
ture, primarily for collections on
loans and sales of commodities
acquired under price-support op­
erations of the Commodity Credit
Corporation.
Another major
portion of public enterprise re­
ceipts in the fiscal year 1958 will
be realized from repayment of
loans previously made by the
Housing and Home Finance
Agency.

37

Trust Funds
V a r i o u s fu n d s which the F e d ­
eral G overn m en t collects are held
in tru st for later p ay m e n t to p ri­
v a te in d iv id u als or to S ta te and
local g o v e r n m e n t s .
B ecau se
these fu n d s are not av ailab le for
the general p u rp oses o f g ov ern ­
m en t, they are not in cluded in
the F ed eral b u d g et, an d their
tran sac tio n s do not d irectly affect
the b u d g et su rp lu s or deficit.
In the fiscal year 1958, tru st
receipts are estim ated to to tal
$15.9 billion, $1.5 billion m ore
th an p ay m en ts. T h ese am ou n ts
include new tru st fu n d s which
were estab lish ed in the fiscal year
1957 for F ed eral d isab ility in su r­
ance which is now a p a r t o f social
secu rity , for F ed eral-aid h igh­
w ay s, and for F ed eral in ter­
m ediate credit ban ks.
T h e newly estab lish ed social
secu rity benefits for d isabled
w orkers betw een the ages o f 50
and 65 are financed from a oneh a lf percent increase in the social
secu rity ta x . O ther social in su r­
ance an d retirem en t tr u st funds
are also financed m ain ly from
p ayro ll ta x e s p aid b y em ployers
an d em ployees.
E x p en d itu res
from these in surance tru st funds
are for benefits to the aged , the
unem ployed, an d the su rv iv o rs of
in sured persons.
T h e F ed eral-aid highw ay tru st

38




fund is expected to receive $2.2
billion in 1958 from excises on
m otor fuels, tires, and vehicles.
E xp en d itu res o f $1.8 billion are
prim arily gran ts to the S ta te s to
assist in building the in te rsta te
highw ay system . R e c e ip ts will
exceed p aym en ts d uring the early
p a rt o f this 13-year p ro g ram , an d
the accum ulated b alan ces will
be spent in later y ears.
Other tru st fu n d s ad m in istered
by the G overnm ent include the
secondary m ark et op eration s o f
the Federal N atio n al M o rtg ag e
A ssociation. T h e e stim ate d e x ­
cess o f expenditures over receip ts
for the fiscal y ear 1958 in the
category o f " a l l oth er tru st
fu n d s” is largely a ttrib u ta b le to
the secondary m ark e t p u rch ase s
of m ortgages by the A ssociatio n .
T hese purchases are exp ected to
result in net tru st exp en d itu res o f
$500 million.
S tartin g Ja n u a ry 1, 1957, th e
financial tran sactio n s o f the F e d ­
eral interm ediate cred it b a n k s
have been accounted for as tr u st
fund rath er th an regu lar b u d g e t
tran sactio n s. T h is change in a c ­
counting occurred as a resu lt o f
legislation enacted in 1956 which
provided for retirem en t o f the
G overnm ent’s c a p ita l an d the
even tual p riv ate ow nership o f
these banks.

Trust Funds

RECEIPTS AND EXPENDITURES

Fiscal Year 1958 Estimate
% BILLIONS

O ld -A g e and
Survivors Insurance

FederaLaid
Highways

1.8

Unemployment
Insurance

Federal Employees

!U

Retirement

Federal Disability
Insurance

Trust Funds

Railroad

(In billionsj

Retirement
îIS llS P ilÂ

Veterans

A ll Other
Trust Funds




^ f ü l i i

3 1 5 .9

iÜ É Â liil

1 4 .3

I H

iil ili liS l

1 1 .7

¡ ¡ ¡ ¡ Ì l i

¡1 1 8 1 1 1 1 1

9 .5

WÈSÊÈ

H M

I I ill

9 .2

m

1 9 5 3 ________

8 .9

l l l i l i i i

Ü

Life Insurance

U

Total
Total expend­
receipts itures
$ 1 4 *4
H

f

i i

39

Federal Public Works
for the Federal
Government accounts for about
7.5 percent of all new construc­
tion in the United States. Pub­
lic works of the State and local
governments carried on with aid
from the Federal Government
represent another 5.5 percent.
A major portion of military
public works expenditures will be
for new air defense installations
for all services and for further
C o n s tr u c tio n

work on dispersing Strategic Air
Command bases to lessen their
vulnerability to attack.
In the next fiscal year the
Atomic Energy Commission will
continue the construction already
underway and will begin work on
some new facilities for producing
fissionable materials, nuclear
weapons, and propulsion equip­
ment as well as for the devel­
opment of atomic power for
civilian use.

B U D G E T AN D T R U S T F U N D E X P E N D IT U R E S FO R P U B L IC W O RK S
[Fiscal years.

Program

In billions]

1953

1954

1955

1956

1957

1958

esti­
mate

actual

actual

actual

actual

esti­
mate

M ajor national security public works:
Budget expenditures:
M ilitary and related public works______________
Atomic energy plants and facilities_____________

31.9
1.1

31.7
1.1

31.6
.8

32.1
.3

32.0
.2

32.3
.2

Total, major national security public works__

3.0

2.8

2.4

2.3

2.3

2.6

1.4
.7
0)

1.3
.7
- .4

1.0
.8
- .1

.9
.9
0)

1.2
.2
.1

1.4
.5
.1

(*)

(*)

(*)

(>)

(*)
1.1

0)
1.7

Total, civil public works_____________________

2.2

1.6

1.7

1.8

2.6

3.7

Total, Federal public works_________________

5.2

4.4

4.1

4. 1

4.9

6.3

Civil public works:
Budget expenditures:
Federal projects_______________________________
Grants to State and local governm ents_________
Loans to State and local governments (net).........
T ru st fund expenditures:
Federal projects_____________________ ________
Grants to State and local governments _ ______

1 Less than 350 million.
N

o t e . — Detail

may not add to totals because of rounding.

40




Federal Public Works =====
Budget and Trust Fund Expenditures in 1958— Estimate
$ MILLIONS
2,324

Buildings otïd Other Facilities

New Federal-aid highways will
be the largest of the civil public
works programs in the fiscal year
1958. The President’s proposal
to aid school construction and the
continuation of work on water
resource development projects
started in earlier years are other
significant parts of the esti­
mated budget and trust fund
expenditures of $3.7 billion for
civil public works next year.
Most of the Government’s
current demand for construction




labor, materials, and equipment
results from military and civil
public works projects already
underway. The President has
directed that each agency of the
Government regulate the rate of
work on these projects and defer
new work which may be appro­
priately delayed. In this way
the Government is seeking to
avoid excessive competition for
labor and supplies in areas where
these resources are being fully
used.

41

Research and Development
A
one-half of the Nation’s
total spending for research and
development is by the Federal
Government. Federal expendi­
tures directly apportioned for this
purpose are estimated to be $2.9
billion in the fiscal year 1958,
with an additional $435 million to
be spent for research facilities. A
somewhat broader concept of the
activities defined as research and
development, particularly in the
military, would bring these ex­
penditures close to $6 billion in
total.
Most Federal research and
development is related to national
security, largely under Depart­
ment of Defense appropriations
specifically for this purpose. The
substantial amounts included
here in the category of research
and development are supple­
mented by expenditures from
regular procurement appropria­
tions for additional weapons and
equipment to be used in develop­
ment and testing. The more than
$5 billion programmed by the
Department of Defense for these
purposes in 1958 will provide for
developing and testing ballistic
missiles and a variety of other
new weapons.
Greater amounts are to be
spent for research by the Atomic
Energy Commission in the
b

o

u

t

42




coming fiscal year than in 1957.
The Commission will emphasize
development of reactors for both
military and civilian uses.
The 1958 budget also provides
for greater effort on research for
improving human welfare, par­
ticularly under the programs of
the Public Health Service of the
Department of Health, Educa­
tion, and Welfare.
In the fiscal year 1958, the
Department of Agriculture will
continue research on means for
increasing the utilization of farm
products and for achieving more
balanced agricultural production.
Research conducted by the
National Advisory Committee
for Aeronautics is primarily con-

BU D G E T E X P E N D IT U R E S FO R
R E SE A R C H AND D E V E L O P M E N T
[In millions]

Fiscal year

Total

1958 est L . . 33,345
1957 est L-- 2,981
2,538
1956 1
1955______ 2,085
1954______ 2,085
1953______ 2,100

M ajor
national
security

32, 793
2,516
2, 202
1,804
1,806
1,830

Other

3552
465
336
281
279
270

1 Includes pay and allowances of m ilitary per­
sonnel assigned to research and development
activities: 1958, 239; 1957, 196; 1956, 188.

Research and Development
Budget Expenditures in 1958—Estimate

National Advisory Committee for Aeronautics

National Science Foundation

^ 1 1 BSP
f Other Agencies

cerned with the problems of
military aviation. In the com­
ing fiscal year, emphasis will be
given to research on higher-speed
flight and on nuclear power for
aircraft.
About one-half of federally
supported research and develop­
ment is conducted in Government
installations; the rest, in indus­
trial plants and laboratories,




universities, and other research
centers through contracts and
grants.
Of the total Federal research
and development expenditures
budgeted for the fiscal year 1958,
over 90 percent will be for applied
research. The remainder is for
basic research such as that fi­
nanced through grants by the
National Science Foundation.

43

Federal A id to State and Local
Governments
F e d e r a l payments to State
and local governments are made
principally through grants which
require some matching expendi­
tures by these other units of
government.
Additional pay­
ments are in the form of shared
revenues and loans. In the fiscal
year 1958, Federal aid to State
and local governments is expected
to be about 7 percent of the Fed­
eral Government’s total pay­
ments to the public from budget
and trust funds.
Over 60 percent of the Federal
grants to States and localities are
made for two programs—public
assistance and highways. Federal-aid highway grants also ac­
count for almost one-half of the
estimated $1 billion increase in

total Federal aid spending from
1957 to 1958. Another $100 mil­
lion of this increase results from
the recent legislation which
reduced the State share in the
matching formulas used for pub­
lic assistance grants.
A major part of the grants for
education in 1958 will continue
to be for schools in areas where
Federal activities have greatly
burdened school facilities and
operations. In addition, an esti­
mated $185 million will be spent
in the first year for the new 4-year
program of general assistance for
school construction which has
been recommended by the Presi­
dent.
The Department of Agriculture
makes payments and grants-in -

B U D G E T AND T R U S T FU N D E X P E N D IT U R E S FOR F E D E R A L AID
[In millions]
Gross expenditures
Grantsin-aid

Shared
revenues

Loans

Total

Collec­
tions on
loans

N et ex­
pendi­
tures

(1)

(2)

(3)

(4)

(5)

(6 )= (4 )-(5 )

3102
98
82
78
66
50

3532
577
289
288
631
987

Fiscal year

1958 est______________ $5, 273
1957 est_______________ 4,272
1956__________________
3,642
1955__________________
3,126
1954__________________ 2,986
1953__________________ 2, 781

44




35,908
4,947
4,013
3,492
• 3,683
3,818

3406
493
260
368
1,026
961

35, 502
4,454
3,753
3,124
2,657
2, 857

Federal Aid to State and Local Governments—
Budget and Trust Fund Expenditures in 1958— Estimate

Unemployment Compensation and Employment Service

H ealth, Agriculture, Natural Resources, and Other

kind to schools, welfare depart­
ments, and other public agencies,
partly in the form of surplus
agricultural commodities.
Gross expenditures for grants
and loans for low-rent housing,
urban renewal, college dormito­
ries, and community facilities
are estimated to be $683 million
in the fiscal year 1958. These
expenditures will be partly offset
by collections amounting to an
estimated $406 million from loans
made earlier.
The Commission on Intergov­




ernmental Relations has recom­
mended that the Government
make payments in lieu of taxes
to local governments in areas
where recent Federal acquisition
of industrial and commercial
property has created undue fiscal
difficulties. The President has
proposed that this principle be
enacted into law.
N o t e . —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 else­
where in this booklet.

45

Federal Credit Programs
B y m a k i n g direct loans and
guaranteeing private loans, the
Federal Government helps to
assure a flow of credit adequate
for sound economic growth. In
the fiscal year 1958, about 80
percent of new Federal credit
commitments will be for guaran­
ties rather than for loans. This
will continue the Government’s
policy of allowing maximum op­
portunity for private sources to
supply the credit needed by
businesses and individuals.
The net effect of the Govern­
ment’s credit activities on the
Federal budget is limited even
though their effect on certain seg­
ments of the economy is great.
Guaranties usually require budg­
et expenditures only when loans
are defaulted. Repayments of
direct loans offset a significant
part of the disbursements for new
loans. For these reasons, esti­
mated net budget expenditures
in the fiscal year 1958 of $1.4
billion, while substantial in them­
selves, are only a fraction of the
new commitments of $21.4 billion.
Four-fifths of new credit com­
mitments in the coming fiscal
year are estimated to be made for

46




housing. The H o u sin g and
Home Finance Agency will make
$10.8 billion of these commit­
ments. Direct loans will be made
for college housing and public
facilities, and both direct loans
and guaranties will be extended
for low-rent housing and urban
renewal projects financed by local
governments. The Agency will
also insure loans for private
homes and will purchase housing
mortgages insured or guaranteed
by Federal agencies.
Virtually all new commitments
to be made by the Veterans
Administration in 1958 will be for
buying and improving homes.
These loans and guaranties are
expected to total $6.1 billion.
The Department of Agriculture
will extend new credit amounting
to about $3.2 billion in the fiscal
year 1958. The largest part will
be for loans and guaranties to
support farm prices. Direct loans
for rural electrification and tele­
phones will continue. Loans made
for farm operation and ownership
will include assistance to drought
victims.
The remainder of new Federal
credit commitments in 1958 will
be for such purposes as the pro­

Federal Credit Programs
[In billions]

Fiscal year
1958 est _ _

New commitments during
fiscal year
Loans

Guaranties

Tout

Loans

Guarantiee

Total

£4.3

$17.1

$21.4

$23.2

$53.6

$76.8

21.1

21.5

4 7.9

: 6 9 .4

18.4

19.2

43.8

6 3 .0

18.9 ! 18.9

40.3

59.2

B llll
i s . 9 ;■ B ill

35.5

1 53.3

30.9

SO.O

1957 est____

4 .8 I M M I I

1956 ______

2.5

1955 ______

4.1 I M

1954 ______

4.1

1953

5.3

¡BI1IB1B
H 1

1—1111
10.6

motion of foreign trade, aid to
small businesses, and expansion
of defense production.
The President again recom­
mended legislation authorizing in
certain cases purchases of local
bonds issued for school construc­
tion and loans to help redevelop




Outstanding and committed
at end of fiscal year

15.9

areas where unemployment per­
sists. He also asked for a review
of the interest rates charged by
the Government for different
kinds of loans, some of which
have statutory maximums that
were fixed when interest costs
were much lower than today.

47

Receipts From and Payments to the Public
[In millions]

D escrip tion

F iscal y ear
1958 estim a te

373, 620
15,859

Budget receipts (page 9)
T rust fund receipts (page 38)
Deduct—
Intragovernmental transactions
Seigniorage on silver

3,515
41

Total, Federal Government receipts from the public
Budget expenditures (page 7)
Trust fund expenditures (page 38)
Government-sponsored enterprise expenditures (net)
Cash payments for previously accrued items (net)
Deduct intragovernmental transactions. _
Total, Federal Government payments to the public
Excess of receipts over payments

A m e a s u r e o f the n et im p act
on the n atio n al econom y o f F e d ­
e ral receip ts an d p ay m e n ts is
o b tain ed b y con so lid atin g b u d get
tra n sa c tio n s w ith tru st fun d and
other
G overn m en t
financial
tran sac tio n s n ot in cluded in the
b u d g et.
T ra n sa c tio n s betw een
F ed eral agencies are excluded
from these calculation s b ecause
th ey do n ot affect the flow o f
m oney betw een the G overn m en t
an d the public.
A ccordin g to p resen t e stim ates
for 1958, the re stra in t on in fla­
tion ary p ressu res which the
b u d g et will exert b y w ithdraw in g

48




_ _

85,923
71, 807
14,351
144
183
3,515
82, 970
2, 953

m ore funds from the econom y
th an it p ay s o u t will be re in ­
forced by net accu m u latio n s in
the tru st funds.
T he excess o f b u d g et an d tru st
fund receipts over p a y m e n ts is
expected to be offset to som e
exten t by such item s as (1) the
estim ated net ex p en d itu res o f
F ed eral land b a n k s, w hose len d ­
ing operation s are sp on so red b y
the G overnm ent, an d (2) the
p ay m en ts to the In te rn atio n al
M o n etary F u n d to redeem T r e a s ­
ury notes which were p a r t o f the
U n ited S ta te s su b scrip tion to
the F un d .

Public Debt
T h e
b u d g e t su rp lu s o f $1.6
billion in the fiscal y ear 1956 w as
used to reduce the public debt.
T h e surpluses estim ated for 1957
an d 1958 will also be used for this
pu rp ose. B a se d on p resen t e sti­
m a te s, the public d eb t will have
been reduced $5.2 billion in the
3 y ears to $269.2 billion b y

Ju n e 30, 1958.
The

annual

change

in

the

p u b lic debt is affected not only
b y the bud get surplus or deficit
p osition b u t also by such fac to rs
as changes in the G overn m en t’s
cash balan ces.

M ain ly because

the tru st funds are expected to
w ithdraw uninvested cash from
the T reasu ry , the reduction in the
d eb t during the fiscal year 1958
will be less th an the $1.8 billion

b u d g et su rp lu s. H ow ever, over
the 3 -year period 1956 through
1958, the to ta l d eb t reduction
will closely ap p ro x im ate the sum
o f the b u d g e t su rp lu ses. B y r e ­
p ay in g its borrow ing, the G o v ­
ernm ent is en largin g the su p p ly
o f fu n d s av ailab le for p riv ate
financing requ irem en ts w ith out
in creasin g the to ta l su p p ly o f
m oney.
A lthough a te m p o rary in crease
in the $275 billion legal d eb t lim it
h as been n ecessary in recent
y ears to cover se aso n al borrow ­
ing v a riatio n s, it is h oped th a t
an in creased lim it will n o t be
needed in 1958, b ecau se o f the
estim ate d red u ction in the p u blic
d eb t and the collection o f co rp o ­
ratio n ta x e s on a m ore cu rren t
b asis.

Change in Public Debt
$ Billions-Fiscal Years




Increase

Decrease

BUDGET EXPENDITURES BY FUNCTION
[Fiscal years.

In millions of dollars]
1953
actual

1954
actual

1955
actual

1956
actual

1957
esti­
mate

17,123

15,958

12,997

12,204

11,731

12,273

11,556

10,961

10,643

10,666

10,321

10,524

10,379

9,357

7,905

8 ,519

9 ,1 0 0

9 ,598

4,553
3,954
1,791
1,008

4,059
3,629
1,895
1,045

3,988
2,292
1,857
944

4,402
2,611
1,651
588

4,8 4 8
2 ,600
1,940
425

5,605
2 ,600
2 ,3 4 0
395

50,363

46,904

40,626

40,641

40,965

43,335

Economic and technical development (ex­
cluding Export-Im port B a n k )___________
Export-Im port Bank loans________________
Conduct of foreign a ffa irs._______ _________
Foreign information and exchange activities.

1,843
117
150
106

1,412
99
130
91

2,061
-1 0 1
121
100

1,706
-9 0
120
111

1,698
397
155
132

1,833
243
194
174

T otal, international affairs and finance.

2, 216

1,732

2, 181

1, 846

2, 382

2,444

239
487
455
63
659
572
26

275
-5 0 6
370
61
312
586
-2 8 5

253
210
349
54
356
647
-3 6 6

251
54
420
99
463
783
-4 2

339
785
418
112
459
44
111

465
438
420
168
1 58
42
157

2,502

814

1,502

2,028

2,269

1,748

2,125

1,689

3,508

3,942

2,420

2,4 9 0

317
109

244
256

286
236

4
305
231

1,247
343
216

1,293
366
271

239
145

217
150

204
177

217
215

234
241

265
280

2,936

2,557

4,411

4,913

4,701

4,965

1,191
150
64
38
34

1,009
164
71
37
35

887
167
78
37
34

743
198
89
38
35

871
234
140
88
39

992
263
137
99
47

1,476

1,315

1,202

1,104

1,371

1,538

Description

1958
esti­
mate

Major national security:
Departm ent of Defense:
Purchase of aircraft, ships, guided missiles,
and other military equipm ent. _ 1_____
P ay and support of active duty military
personnel____________________________
Operation and maintenance of equipment
and facilities_________________________
M ilitary public works, research, reserves,
and other____________________________
M ilitary assistance________________________
Atomic energy____________________________
Stockpiling and defense production----------T otal, major national security_________

International affairs and finance:

Commerce and housing:
A viation_________________________________
Housing and community developm ent_____
W ater transportation_____________________
Civil defense and disaster aid s_____________
P ostal service____________________________
Highways (excluding trust fund)__________
General aids to business and other_________
Total, commerce and housing.

Agriculture and agricultural resources:
Farm price support and related program s.
Soil bank (including conservation practice
paym ents)_____________________________
Agricultural land and water resources______
Farm ownership and operation loans_______
Rural electrification and rural telephone
loans___________________________________
Research and other agricultural services___
Total, agriculture and agricultural
resources__________________________

Natural resources:
River basin development and power_____
Forests, public domain, and Indian lan d s.
N ational parks and fish and wildlife_____
M inerals_______________________________
General resource surveys and other______
Total, natural resources.

50




BUDGET EXPENDITURES BY FUNCTION—Continued
[Fiscal years.

In millions of dollars]
1953
actual

1954
actual

1955
actual

.1956
actual

1957
esti­
mate

1,332
318
288
281

1,439
290
271
277

1,428
275
321
328

1,457
351
275
475

1,584
501
283
381

1,684
606
534
400

36

35

56

60

98

111

171

173

143

157

185

203

2,426

2,485

2,552

2,776

3,032

3,538

2,420
757

2,482
782

2,681
727

2,798
788

2,896
816

3,103
836

659

546

664

767

791

757

138
102
223

158
100
188

150
57
178

123
105
176

121
49
177

110
42
179

4,298

4,2 5 6

4 ,4 5 7

4 ,7 5 6

4,851

5 ,027

Interest on public debt:
M arketable obligations __
_____
Savings bonds___ ____
Special issues.
____
_______
Other nonmarketable issues___ ____ __
Interest on refunds and uninvested funds__

3,300
1,678
1,044
482
80

3,101
1,667
1,128
487
87

3,127
1,656
1,115
473
68

3,659
1,635
1,138
354
60

4 ,1 0 0
1,600
1,200
300
60

4 ,2 0 0
1,600
1,200
300
60

Total, in t e r e s t ._____________________

6,583

6 ,470

6,438

6,8 4 6

7,260

7,360

Financial m anagem ent.__________________
Property and records management___ _____
F B I, alien control, and related program s___
Legislative and judicial functions__ _______
Central personnel costs__ ____________ ____
D istrict of Columbia, territories, and pos­
sessions_________________ __ __________
W eather Bureau and other________________

442
185
147
78
387

449
155
160
78
93

431
164
157
91
115

475
164
188
115
334

478
248
186
136
627

519
307
196
152
104

55
179

53
250

67
176

69
283

78
118

103
70

Total, general government. __________

1,474

1,239

1,201

1,629

1,870

1,451

200

400

68,900

71,807

Description

1958
esti­
mate

Labor and welfare:
Public assistance (payments to States to aid
needy persons)__ __ ________________
Promotion of public health________________
Promotion of education______ ________ __
Labor and manpower services_____________
General-purpose research, libraries, and
museums . ___________________
____
School lunch, vocational rehabilitation, and
other________________________
_______
T otal, labor and w e lfa r e _____ _______

Veterans services and benefits:
Compensation and pensions_____ _____ __
H ospitals and medical care_______ _______
Readjustm ent benefits for education and
training____________ ___________________
Readjustm ent benefits for unemployment,
loan guaranty, and other__ ____ ____ ____
Insurance and indemnities_____________ __
Other services and adm inistration_______ .
T otal, veterans services and benefits__

Interest:

General government:

Allowance for contingencies____
Total, budget expenditures_____ _____

74,274

67,772

64,570

66,540

1 N et after adjusting rates.
N

o t e . — Detail




may not add to totals because of rounding.

51

BUDGET RECEIPTS AND EXPENDITURES AND PUBLIC DEBT
[F isc a l y ears.

B u d ge t
receipts

B u d ge t
exp end­
itures

191 5 _____
191 6 _____
1917.
191 8 .
1919

683
762
1, 100
3 ,6 3 0
5 ,0 8 5

746
713
1 ,9 5 4
12, 662
18, 448

1920
1921
1922
1923
1924

6,
5,
4,
3,
3,

649
567
021
849
853

6, 357
5 ,0 5 8
3, 285
3, 137
2, 890

1925
1926
1927
1928
1929

3,
3,
3,
3,
3,

598
753
992
872
861

1930
1931
1932
1933
1934
19 3 5 _____
1936
1937
193 8 ____
1939

F iscal
year

S u rp lu s
or deficit

In millions of dollars]

Public
debt at
end of
year

F iscal
year

Bu d get
receipts

B u d get
expend­
itures

Su rplu s
or deficit

P ub lic
d ebt at
end of
year

- 6 3 * “ 1, 191
+48
1, 225
-8 5 3
2, 976
- 9 ,0 3 2
12, 244
- 1 3 , 363
2 5 ,4 8 2

1940
1941
1942
1943
1944

5, 144
7, 103
12,556
2 1 ,987
4 3 ,6 3 6

9, 062
13 ,2 6 2
34, 046
79, 407
9 5 ,0 5 9

- 3 ,9 1 8
- 6 , 159
- 2 1 , 490
- 5 7 , 420
- 5 1 ,4 2 3

42, 968
48, 961
72, 422
136, 696
2 0 1 ,0 0 3

+291
+509
+736
+713
+963

24, 299
23, 977
22, 963
22, 350
21 ,2 5 1

1945
1946
1947
1948
1949

44, 475
39, 772
39, 786
4 1 ,4 8 8
37, 696

9 8 ,4 1 6
60, 448
39, 032
3 3 ,0 6 9
39, 507

- 5 3 ,9 4 1
- 2 0 , 676
+754
+ 8 , 419
- 1 , 811

258,
269,
258,
252,
252,

2, 881
2, 888
2, 837
2 ,9 3 3
3, 127

+717
+865
+ 1, 155
+939
+734

20, 516
19, 643
18, 512
1 7 ,604
16,931

1950
1951
1952
1953
1954

36,
47,
61,
64,
64,

495
568
391
825
655

39, 606
4 4 ,0 5 8
65, 408
74, 274
67, 772

- 3 , 111
+ 3 ,5 1 0
- 4 ,0 1 7
- 9 , 449
- 3 , 117

257, 357
255, 222
259, 105
266, 071
2 7 1 ,2 6 0

4, 058
3, 116
1 ,9 2 4
2, 022
3,0 6 5

3, 320
3 ,5 7 8
4, 659
4, 623
6, 694

+738
-4 6 2
- 2 , 735
- 2 ,6 0 2
- 3 ,6 3 0

16, 185
16, 801
19, 487
22, 539
2 7 ,0 5 3

1955
1956
1957 e s t . .
1958 e s t . .

60,
68,
70,
73,

390
165
628
620

64, 570
66, 540
6 8 ,9 0 0
71, 807

- 4 , 180
+ 1 ,6 2 6
+ 1, 728
+ 1 ,8 1 3

274,
272,
270,
269,

3, 730
4, 069
4, 979
5 ,6 1 5
4, 996

6,
8,
7,
6,
8,

-2 ,
-4,
-2 ,
-1,
-3,

28,
33,
36,
37,
40,

521
494
756
792
858

791
425
777
177
862

682
422
286
292
770

374
751
600
200

701
779
425
165
440

N o t e . —T h e ch ange in the pu b lic d eb t from y ear to y ear reflects not only the b u d g et su rp lu s or deficit b u t
also ch anges in the T r e a su r y ’s cash b alan ces, the effect of certain tru st fund tran sactio n s, and direct b or­
row ing fro m the pu blic b y certain G o v ern m en t enterprises.

BUDGET EXPENDITURES BY FUNCTION
[F isc a l years.

In m illions of dollars]
A ctu al

E stim a te

F u n ctio n
1949

1950

1951

1952

1953

1954

1955

1956

1957

1958

M a jo r n atio n al se c u rity ! _____ 12, 907 13 ,0 0 9 22, 444 43, 976 50, 363 4 6 ,9 0 4 40, 626 4 0 ,6 4 1 40, 965 43, 335
In te rn a tio n al
affairs
and
fin an ce_____ _____ ______
6, 053 4, 674 3, 736 2, 826 2 ,2 1 6 1, 732 2, 181 1, 846 2, 382 2, 444
C om m erce and h o u sin g _____
1, 904 1,991 2 ,2 1 7 2, 623 2, 502
814 1, 502 2, 028 2, 269 1, 748
A gricu ltu re and agricu ltu ral
2, 512 2, 783
re so u r c e s ._ _______________
650 1,045 2, 936 2, 557 4 ,4 1 1 4 ,9 1 3 4, 701 4 ,9 6 5
1 ,0 4 9 1 ,2 0 6 1 ,2 6 7 1 ,3 6 6 1 ,4 7 6 1,315 1 ,2 0 2 1, 104 1, 371 1, 538
N a tu r a l re so u rce s____________
L a b o r and w elfare______ _____
1,5 6 3 1,9 6 3 2, 065 2, 168 2 ,4 2 6 2, 485 2 ,5 5 2 2, 776 3 ,0 3 2 3 ,5 3 8
V eteran s services and b en e fits. 6, 726 6 ,6 4 6 5, 342 4, 863 4, 298 4, 256 4 ,4 5 7 4, 756 4, 851 5, 027
In te re s t__ _________
5 ,4 4 5 5 ,8 1 7 5 ,7 1 4 5 ,9 3 4 6 ,5 8 3 6, 470 6 ,4 3 8 6, 846 7, 260 7, 360
G en eral go v ern m en t __ ____ 1 ,0 7 6 1, 186 1, 327 1 ,4 6 4 1 ,4 7 4 1 ,239 1, 201 1, 629 1 ,8 7 0 1 ,4 5 1
A llow an ce for contingencies
200
400
A d ju stm e n t to d aily T re a su ry
sta te m e n t b a s is _______
+272 +341 -705 -8 5 7
T o t a l __________________ 39, 507 3 9 ,6 1 7 44, 058 65, 408 74, 274 67, 772 64, 570 66, 540 6 8 ,9 0 0 71, 807
N o t e . — D etail m a y not ad d to to ta ls becau se of rounding.

52




Glossary of Selected Budget Terms
Fiscal year.—A year running from July 1 through June 30 which is
designated by the calendar year in which it ends.
New obligational authority.—Authorizations enacted by the Con­
gress which allow Federal agencies to incur obligations for the pay­
ment of money. These authorizations must precede all budget
obligations and expenditures. They are enacted in several forms,
including:
Appropriation.—Authorization to spend money for a stated purpose.
This is the most common form of new obligational authority.
Contract authorization.— Authorization to make a contract before an
appropriation is made to cover it, usually for construction which will extend
over a considerable time. A subsequent appropriation to pay for the
contract is necessary.
Authorization to expend from debt receipts.—Authority granted Govern­
ment enterprises to spend money they borrow from the Treasury or from
the public.

Obligation.—Commitment made to pay out money. This includes
approval of loans and contracts for equipment or construction, as well
as current commitments such as salaries or benefit payments.
Budget expenditures.—-Net amounts paid to liquidate obligations.
Expenditures may follow obligations by a few weeks or in some cases
by as many as three or more years. Most expenditures are made in
the form of checks and are reported for the fiscal year in which the
checks are issued. Exceptions are: (a) payments made in currency
instead of by check are reported as expenditures when the disburse­
ments are made, (b) payments made by issuing bonds or notes are
reported as expenditures when they are issued, and (c) interest on the
public debt is reported as an expenditure in the year in which the
interest accrues rather than when it is paid. Receipts of public
enterprise funds are deducted from the total sums disbursed by these
funds in arriving at budget expenditures. Budget expenditures
exclude payments from funds held in trust and repayments of borrow­
ing.
Budget receipts.—Money received by the Treasury from taxes and
customs (less refunds of previous overpayments) and from miscel-




53

Glossary----continued
laneous sources such as collections on certain loans, rents, fines, fees,
and sales. Tax and customs receipts are stated on the basis of
collections reported by collecting officers and miscellaneous receipts
on the basis of confirmed deposits. Budget receipts exclude funds
received in trust and money obtained from borrowing.

Budget surplus.—Excess of budget receipts over budget expenditures
in any fiscal year. A surplus may be added to the cash held by the
Government or used to retire part of the debt.
Budget deficit.—Excess of budget expenditures over budget re­
ceipts in any fiscal year. A deficit may be financed by increasing
the debt, by decreasing the cash held by the Government, or both.
Unexpended balances carried forward.—Portions of obligational
authority enacted in prior years in the several forms mentioned
above which are still available in the succeeding year(s). These
balances consist of authority to incur obligations or to draw cash
from the Treasury as needed to pay for obligations; they are not
cash on hand.
Revolving funds.—Funds which finance a cycle of operations, in
which expenditures generate receipts that are available for continuing
use. Revolving funds may be for public enterprises with receipts
primarily from outside the Government, such as the postal fund, or
for performance of services, such as printing, to meet the Govern­
ment’s own needs.
Management funds.—Funds created to permit pooling of advance
payments under two or more appropriations in order to carry out
closely related activities.
Trust funds.—Funds established for receipts held in trust by the
Government for use in carrying out specific purposes in accordance
with an agreement or statute.
Guaranty.—A credit aid in which the Government pledges to repay
loans made by others in case the borrower defaults or, in some cases,
pledges to take over loans from private lenders at their option.

54




UNITED STA TES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1957

Fop sale by the Superintendent of Documents, U. S. Government Printing Office
W ashington 25, D. C. - Price 25 cents







THE

GOVERNMENT

R£N£go t i-

OF

/'

BRANCH

CL+iKts

noissiv^ cq

EXECUTIVE