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THE
BUDGET
IN BRIEF

E X E C U T I V E O F F I C E OF T H E P R E S I D E N T / B U R E A U OF T H E

BUDGET

THE GOVERNMENT DOLLAR
Fiscal Y e a r 1969 Estimate

Where

it goes . . .

Veterans

Education and
Other
Social

Excludes Interest P a i d to Trust Funds

ORGANIZATION CHART OF THE
EXECUTIVE BRANCH
This foldout chart presents a graphic view of
the major components of the Executive Branch
of the Government. Included are the staff
offices that make up the Executive Office of the
President, the 12 executive departments, and
various agencies, boards, and commissions.
Temporary commissions, and interagency and
public advisory committees are not included.

Major Changes Since January 1967
• The three-member Board of Commissioners
of the District of Columbia was replaced
by a single Commissioner to carry out its
executive-administrative functions and a
nine-member Council to carry out its quasilegislative functions.
• The National Capital Transportation Agency went out of existence, its functions being
assumed by a non-Federal organization,
the Washington Metropolitan Area Transit
Authority.
• The Virgin Islands Corporation was dissolved.

For further details on the organization and functions of Federal agencies, see the U.S.
Government

Organization

Manual

(for sale by the Superintendent of

Government Printing Office, Washington, D.C. 20402).

Documents,

FROM THE PRESIDENT'S BUDGET MESSAGE

This is a critical and challenging time in our history. It
requires sacrifices and hard choices along with the enjoyment of the highest standard of living in the world. N o
nation has remained great by shedding its resolve or shirking its responsibilities. We have the capacity to meet those
responsibilities. The question before us is whether or not
our will and determination match that capacity.
In the past 4 years, this Nation has faced formidable
challenges. We have confronted them with imagination,
courage, and resolution. By acting boldly, we have forced
a number of age-old concerns—ignorance, poverty, and
disease—to yield stubborn ground.
The rollcall of accomplishments is long. But so is our
agenda of unfinished business. Our heritage impels us to
steadfast action on those problems of mankind which
both gnaw at our conscience and challenge our
imagination.
As your President, I have done all in my power to devise
a program to meet our responsibilities compassionately
and sensibly. The program is embodied in this budget for
1969.1 urge active support for its principles and programs.

JANUARY

29,

1968.

CONTENTS
Page

GLOSSARY

WHAT IS T H E B U D G E T ?

PART 1. B U D G E T POLICY A N D THE ECONOMY
The Budget Program for 1969
The jobs to be done
Budget summary
The Budget and the Economy
The current situation
Budget receipts in 1969
Budget outlays in 1969
Controllability of budget outlays
Budget program reductions and reforms
PART 2. THE B U D G E T P R O G R A M B Y F U N C T I O N
National Defense
International Affairs and Finance
Space Research and Technology
Agriculture and Agricultural Resources
Natural Resources
Commerce and Transportation
Housing and Community Development
Health, Labor, and Welfare
Education
Veterans Benefits and Services
General Government
Interest

7
7
7
8
10
11
12
14
18
20
23
24
28
31
33
35
37
40
42
46
48
50
51

PART 3. THE B U D G E T PROCESS
The Federal Budget Cycle
Economic Aspects of the Budget Process
Program determination
Efficiency in reaching program goals
The Budget in Perspective
Growing public responsibilities
Growing public programs
Strengthening the federal system
Borrowing and the Federal debt

52
52
54
55
55
56
56
57
59
60

PART 4. T H E NEW B U D G E T C O N C E P T

HISTORICAL

TABLES

Note.—All years referred to are fiscal years, unless otherwise noted. Details in the
tables, text, and charts of this booklet may not add to totals because of rounding.

GLOSSARY
F I S C A L Y E A R — Y e a r running from July i to June 30 and designated by the calendar year
in which it ends.
A U T H O R I Z A T I O N — A n Act of Congress which authorizes Federal programs, obligations, or
expenditures. The term "authorizations" sometimes refers to basic substantive legislation
setting up a program or an agency, and authorizing appropriations to be made for it,
but not actually providing authority to spend.
N E W O B L I G A T I O N A L A U T H O R I T Y (NOA)—Authority provided by the Congress to obligate the Federal Government to pay out money. While usually voted each year, it may
become available annually under a permanent law, as with interest on the public debt.
Appropriations are the most common form of new obligational authority.
LOAN AUTHORITY

( L A ) — T h e portion of budget authority that is used to cover the

principal of loans in the loan account.
B U D G E T A U T H O R I T Y — T o t a l new obligational authority plus loan authority.
OBLIGATIONS—Commitments

made

Federal

departments

and

agencies

to pay

out

money—as distinct from the actual payments made for products, services, loans or other
purposes. The amounts may not be larger than those authorized by the Congress.
L O A N A C C O U N T — A l l domestic credit transactions where there are definite requirements
for full repayment, plus all foreign loans made on commercial terms. They are recorded
as gross loan disbursements, minus writeoffs and repayments, which equals net

lending.

E X P E N D I T U R E A C C O U N T — A l l outlays except those included in the loan account.
E X P E N D I T U R E S — T h e amount of checks issued, interest accrued, or other payments made,
net of refunds and reimbursements received, in the expenditure account.
O U T L A Y S — T o t a l expenditures plus net lending.
RECEIPTS—Money received by the Government, except as a result of refunds or reimbursements.
T R U S T FUNDS—Money held by the Federal Government in trust for specified purposes, such
as social security and highways.
F E D E R A L F U N D S — F u n d s entirely owned by the Federal Government as distinct from the
trust funds which the Government theoretically holds in a fiduciary capacity.
INTERFUND

AND

INTRAGOVERNMENTAL

TRANSACTIONS—Payments

from

one

agency or fund to another. They are treated as offsets to expenditures, usually of the
receiving fund or agency, to avoid double counting.
P R O P R I E T A R Y RECEIPTS—Receipts of Government activities of a business-type or marketoriented nature. They are treated as offsets to the expenditures of the agency and function
to which they relate.
GROSS N A T I O N A L PRODUCT—Total market value of all final goods and services that the
Nation produces in a single year.
FISCAL

POLICY—Federal

Government

economic

stabilization

policies—as

distinct

from

monetary policy—designed to foster economic goals such as high employment, stable
growth and prices, and balance-of-payments equilibrium, through changes in taxes and
levels of Government spending.
M O N E T A R Y POLICY—Federal Government economic stabilization policies—primarily executed by the Federal Reserve System—designed to achieve economic goals such as high
employment, stable growth and prices, and balance-of-payments equilibrium, through
influence on the money supply, interest rates, and credit availability.

WHAT IS THE BUDGET?
The Budget of the United States Government is one of the most important
documents issued by the Government each year. It presents the President's
recommendations for the programs and financial plan of the Federal Government for the coming year.
The Federal Budget has many aspects and must serve various purposes:
• It represents a proposed allocation of resources to serve national objectives,
between the private and public sectors, and within the public sector.
• It is an economic document which embodies the taxing and spending policies
of the Government for promoting high employment, price stability, growth
of the national economy, and improving the Nation's balance of payments.
• It sets forth the President's requests to Congress for action on appropriation of funds, new programs, and tax legislation, to achieve the Government's objectives.
• It reports to the Congress and the people on how the Government has spent
the funds entrusted to it in past years.
The budget is presented to the Congress by the President each January, 6
months before the start of the fiscal year, which runs from July i to June 30 and
is designated by the calendar year in which it ends. Congress considers the President's recommendations and votes new budget authority and revenue measures.
Once granted this authority, Federal agencies may obligate the Government to
make the outlays necessary to carry out the authorized programs. However,
considerable time may elapse between the time Congress votes the budget
authority and the time the outlays actually occur (explained in Part 3).
To carry out the recommendations of the President's Commission on Budget
Concepts, which was established last year to review budget concepts and presentation, the 1969 budget is a unified budget. This budget supersedes the three
concepts formerly used—the administrative budget, the consolidated cash statement budget, and the Federal sector of the national income accounts. This unified
approach should help to increase both public and congressional understanding
of the budget.

There are four major components of the new concept:
• It is comprehensive in coverage as it includes not only Federal funds but
also the trust funds (such as the social security and highway funds) which
were omitted from the former administrative budget.
• Lending programs are separated from spending programs within the total of
Federal oudays, because Government spending is different from lending in
terms of its direct effect on income and output in the economy.
• For consistency in reporting, the receipts of Government activities of a business-type nature are now treated as offsets to the expenditures of the agency
or function to which they relate. For example, sales of timber from the
national forests are now netted against the expenditures of the Department
of Agriculture.
• To further clarify the role of the Congress in the budget process, more prominence is given to actions requested of the Congress, including appropriations as well as tax or other actions of a fiscal policy character.
In recent years, the Budget in Brief has highlighted consolidated cash totals.
The totals under the new concept do not differ markedly from the former consolidated cash totals since both include the trust funds.
However, when compared with the widely used administrative budget, which
excluded the social security, highway and other trust funds whose outlays now
exceed $45 billion, the budget totals under the new concept are not only more
comprehensive but significantly higher. For example, under the new concept,
the budget for fiscal 1969 reflects expenditures and net lending of $186.1 billion,
while the former administrative budget expenditure totals for 1969 would have
been $147.4 billion. Therefore, the 1969 presentation requires some adjustment
in public thinking about Government finances. (The new concept is discussed
in more detail in Part 4.)
The Budget in Brief is designed to present the highlights of the budget in a
clear and nontechnical way. It is our hope that the Budget in Brief will help an
increasing number of citizens to obtain a better understanding of the Federal
Government's activities, responsibilities, and processes.

PART 1

BUDGET POLICY AND THE ECONOMY
THE BUDGET PROGRAM FOR 1969
The Nation faces unprecedented challenges at home and abroad.
The budget of the United States for 1969 presents the President's proposals for meeting these challenges during the coming year.
The budget proposals reflect our determination to:
• Defend the independence of Vietnam and improve the forces
needed to deter potential aggression elsewhere;
• Expand the horizon of man's opportunity and progress at home;
and
• Reduce inflationary pressures which would unfairly tax the purchasing power of those least able to afford it.
The Jobs To Be

Done

The Federal Government's foremost responsibility is to safeguard
the peace and security of the United States. Correspondingly, the
largest single category of expenditures is for national defense. We also
pursue, with other nations, the quest for a peaceful and prosperous
world. International programs complement our defense effort and
support the cause of freedom and independence around the globe.
On the domestic front, we face urgent and increasing challenges,
brought on by the quickening tempo of social and economic change.
Our prosperity and economic growth in recent years have been unparalleled. We are entering our eighth year of unbroken economic
advance. At the same time, the rapid growth in population, higher
standards of living, and the expanding productive power of our society
have created new problems and helped to supply the resources to tackle
old ones—problems of urban decay and congestion, of air and water
pollution, of people and regions left behind in the general economic

advance, and of increasing crime rates. The problems are serious;
they gnaw at the fabric of our society. We have come increasingly to
learn that in this land of opportunity, if man lacks opportunity, he
lacks all.
We are also confronted with problems that are temporary in nature—but no less real. Our efforts to improve the lot of our needy and
aged, to correct the imbalance in our international payments, and to
elevate the real economic well-being of the entire Nation—are threatened by inflation and rising interest rates.
The tasks that lie before us challenge our ingenuity and our determination. But they can be met.
Budget

Summary

The overall revenue and expenditure totals in the 1969 budget
are designed to help maintain sustainable and healthy economic
growth, reduce the budgetary deficit substantially, and lessen the pressures on prices and interest rates. The individual budgetary programs,
within the total, have been selected on the basis of a rigorous priority
system to make progress towards achieving our urgent foreign and
domestic goals.
The President has proposed three kinds of actions: First, selective
expansion of existing programs or the inauguration of new programs
only as necessary to meet those urgent requirements whose fulfillment
we cannot delay.
Second, delays and deferments in existing programs, wherever this
can be done without sacrificing vital national objectives.
Third, basic changes, reforms, or reductions designed to lower the
budgetary cost of a number of Federal programs which, in their present form, no longer effectively meet the needs of today.
To carry forward the proposals in the 1969 budget, new budget
authority of $201.7 billion for 1969 will be required, of which $141.5
billion must be acted upon in the current session of the Congress.
The remainder will become available under existing law without
current congressional action, including the social insurance trust funds
and interest on the Federal debt.
Total budget outlays of $186.1 billion are proposed for 1969, including $182.8 billion of expenditures and $3.3 billion of net lending.

BUDGET

SUMMARY

[Fiscal years. In billions]
1967
actual

Description

B u d g e t authority (largely

1968
estimate

1969
estimate

appropriations):

Previously enacted

$135.4

Proposed for current action by Congress

$125.1
3.3

$141.5

58.7

69.9

73.1

-11.5

-11.8

-12.9

182.6

186.5

201.7

Receipts

149.6

155. 8

Expenditures (excludes net lending)

153.2

169.9

178.1
182.8

-3.6

-14.0

-4.7

Becoming

available

without

current

action

Congress
Deductions for interfund and intragovernmental transactions and proprietary receipts
Total, budget authority
R e c e i p t s , e x p e n d i t u r e s , a n d net l e n d i n g :
Expenditure account:

Expenditure deficit ( — ) .
Plus: Loan account:
Loan disbursements.

17.8

20.9

20. 4

Loan repayments...

-12.6

-15.1

—17. 1

Net lending.
Equals: T o t a l

3.3

5.2

budget:

Receipts

149.6

155.8

Outlays (expenditures and net lending)

158.4

175.6

178.1
186.1

-19.8

—8.0

Budget deficit ( — )

The total compares with an overall outlay of $175.6 billion estimated
for fiscal year 1968.
Almost all of the estimated $10.4 billion growth in budget outlays
is concentrated in those parts of the budget where increases are unavoidable—such as in programs under which payments are required
by existing legislation, mandatory pay raises, major portions of the
defense program, and higher interest payments on the Federal debt.
All other outlays, representing that portion of the budget which can
be considered relatively controllable, have been held to the minimum
level consistent with national needs and priorities.
Budget receipts in 1969 are estimated at $178.1 billion, which is $22.3
billion more than in 1968. The increase results from continued
economic growth—yielding additional tax receipts—along with
added revenues from the proposed temporary income tax surcharge

300-400 o—6

and other tax measures the President is proposing. With outlays of
$186.1 billion, the fiscal year 1969 budget deficit will be $8.0 billion,
compared with $19.8 billion in 1968.
Between 1968 and 1969 the normal growth in revenues—associated
with rising incomes and business activity—is expected to be $11.5 billion. This more than covers the $10.4 billion rise in budget outlays between the two years. Consequently, all of the revenues from the proposed surcharge and the speedup in corporate tax payments will be
applied towards reducing the budget deficit.
When net lending is excluded, the expenditure account deficit in
fiscal year 1969 is estimated to be $4.7 billion, compared to $14.0 billion
in 1968. This expenditure account deficit is a more meaningful measure of the direct impact of the Federal budget on the Nation's income
and output.

THE BUDGET A N D THE ECONOMY
Federal spending and taxing policies can contribute significantly to
maintaining stable economic prosperity and growth. This was recognized by the Congress in enacting the Employment Act of 1946, in
which the Government was given specific responsibility for the promotion of maximum employment, production, and purchasing power.
The tax system itself has an important influence on the level and
rate of economic growth. As taxes are reduced, private after-tax incomes and profits rise, and economic activity is stimulated by the
additional demands for goods and services. On the other hand, as
taxes are increased, private demand is reduced and the rate of economic
growth is restrained.
In the early part of the 1960's the economy was lagging behind its
production potential. Unemployment was substantial, at times exceeding 7% of the civilian labor force, and much industrial plant capacity
was idle. To fill the gap between actual and potential production, the
Government adopted an expansionary fiscal policy. This policy was
characterized chiefly by substantial reductions in individual, corporate,
and excise taxes in 1962, 1964, and 1965. By increasing the purchasing
power of consumers and business firms, the tax cuts fostered a strong
and continuing economic expansion with striking reduction in unemployment and in unused plant capacity.
The best overall indicator of economic growth is the rise in the real
gross national product (GNP)—the aggregate value of final goods and
services produced during the year, adjusted for price changes. The
G N P (in constant 1967 prices) rose by over $200 billion during the
10

1961-67 period, an average annual rate of real growth of 5%. To put
this in perspective, this increase in G N P is larger than the total output
of West Germany, the world's third largest economy. As a result of the
increased economic activity, more than 8.5 million new jobs were created, and for the calendar year 1967 the unemployment rate was below
4% for the second straight year. This economic expansion now entering its eighth year has been the longest and strongest economic expansion in our history.
The Current

Situation

Unlike the early 1960's the major economic problem facing the
Nation today is not one of lagging economic growth, but its opposite.
At the present time, the economy is threatened by overheating. We
have had to increase defense expenditures very rapidly, in order to
meet our commitments in Vietnam. As a consequence, the Federal
budgetary deficit has climbed sharply. Other sectors of the economy
are also surging ahead strongly. Demands on our resources are likely
to reach beyond the Nation's capacity to produce goods and services.
These kinds of economic conditions, if unchecked, could lead to
inflation, as a wage-price spiral is set underway. Interest rates, which
have already risen in the past eighteen months, could rise more sharply.
Our balance of payments position with the rest of the world could
deteriorate, as export prices rose and our imports increased. Fiscal
policy measures can help check these conditions and keep the economy
on a path of stable noninflationary growth.
In the face of increasing expenditures in Vietnam, and with the
outlook for rising inflationary pressures in the latter part of 1967,
the President, in his Budget Message last year, proposed a 6% tax
surcharge to meet these problems. In August of last year, in view of
changed fiscal conditions, he modified his request, raising the proposed surcharge to 10%. In the current budget, the President is again
proposing this 10% surcharge on income tax liabilities—effective January 1, 1968, on corporations and April 1, 1968, on individuals. The
increase in individual income taxes would amount to about one penny
on each dollar of income. The total tax increase in fiscal year 1969
from the surcharge would be $9.8 billion. In addition, the 1969 budget
proposes to retain certain excise taxes at the present level and accelerate
collections of corporate income taxes.
With enactment of the tax measures proposed in the budget—the

total deficit can be reduced by $11.8 billion between 1968 and 1969.
Without the tax measures, the deficit in 1969 would remain close to
$20 billion for the second year in a row. With an economy already
moving strongly upward, such a deficit in 1969 would clearly add
sharply to inflationary pressures.
On the expenditure side, budget increases are being held to those
required by law and those essential to carry out our most pressing
defense and nondefense responsibilities. The 1969 budget provides for:
• the cutbac\ of controllable programs in ig68 from levels originally
budgeted, which the Congress enacted on the President's recommendation ;
• additional reductions, deferrals, and program reform, which would
reduce program levels in a variety of Federal activities by $2.9
billion in 1969;
• a determined effort to slow the pace of federally financed construction programs as much as possible consistent with orderly
government; and
• a careful review of all budget requests to insure that increases are
recommended only in case of high priority programs.
Taken together, the tax and expenditure proposals form a fiscal
policy which provides the needed measure of restraint and holds the
rate of growth of the demands on our resources to a level that would
reduce inflationary forces, relieve the upward pressure on interest
rates, and help sustain confidence in the American dollar.
Tax and expenditure policies must be timely. We cannot wait to
take corrective action until inflationary forces are in full swing. Once
a wage-price spiral begins, it cannot be quickly eliminated—it tends
to continue for some time after corrective measures are applied. In the
meantime, objectives of economic growth or price stability suffer,
and certain groups of the population are made to shoulder unfairly
the burdens of unemployment or inflation.
Budget Receipts in

1969

In our Federal tax system most taxes are levied on personal income
and corporate profits. Consequently, when incomes and profits grow,
tax collections increase. In 1969, $11.5 billion of the $22.3 billion rise in
collections over 1968 will be due to economic growth, while the proposed surcharge and other tax measures will account for the remaining $10.8 billion of the increase.
12

$ Billions
2 0 0 -

B u d g e t

R e c e i p t s

175

150
130

—

Total i

1958

1959

Fiscal Y e a r s

I960

1961

1962

1963

1964

1965

1966

1967

1968

1969

Estimate

Individual income tax receipts are estimated at $80.9 billion in 1969,
$13.2 billion higher than in 1968. The increase is due to higher personal
incomes and the tax increase. The proposed surcharge will yield $0.9
billion of receipts in 1968 and $6.9 billion in 1969.
Corporate income tax receipts are estimated to be $34.3 billion in
1969, an increase of $3.0 billion over 1968. This estimate includes an
increase of $1.0 billion from the proposed tax surcharge in 1968 and
$2.9 billion in 1969. The proposed acceleration of corporate tax payments will add $0.8 billion to 1968 receipts and $0.4 billion in 1969.
Social insurance and retirement receipts include employment taxes
imposed on payrolls to finance social security; unemployment insurance; premiums for health and supplemental medical insurance; and
civil service retirement. These combined receipts are expected to increase to $40.0 billion in 1969, $4.6 billion higher than in 1968, due
mainly to the increase in social security taxes.

BUDGET

RECEIPTS

[Fiscal years. In billions]
Source

Individual income taxes
Corporation income taxes

1967
actual
$61.5
34.0

1968
estimate

1969
estimate

$67.7

$80.9
34.3

Excise taxes

13.7

31.3
13.8

Employment taxes

27. 8

29.7

14.7
34.2

Unemployment insurance

3.7

Premiums for insurance and retirement

1.9
3.0

3.7
2.0

2.3

3.1
2.0

3.4
2.1

2.4

2.7

155.8

178.1

Estate and gift taxes
Customs
Miscellaneous receipts
Total receipts

1.9
2.2
149.6

3.6

Budget Outlays in J 969
Outlays recommended for 1969 are discussed in Part 2. Briefly the
outlays include:
• $182.8 billion of expenditures.
• $3.3 billion of net lending.
To understand best the fiscal impact of Federal activities on the
economy, it is most helpful to use figures from the expenditure account
of the budget (which exclude "net lending"). The effect of repayable loans on the economy is very different than when the Federal
Government spends money for a missile, a dam, or a grant program.
A loan is simply an exchange of financial assets. Unlike other outlays, it does not add directly to the income of the recipient. Consequently, the budget identifies and distinguishes "expenditures" from
"lending," and, for purposes of evaluating economic impact, shows a
separate calculation of the surplus or deficit based on expenditure totals
alone.
Expenditures of the Federal Government are estimated to total $182.8
billion in 1969. Only $99.4 billion, however, will actually be used to
buy goods and services—including the salaries of military and civilian
employees—directly needed to carry out the Government's programs.
The remainder will be benefit payments to individuals or grants to
State and local governments. For example, when the Government
pays out social security benefits to individuals, it does not "buy" anything itself, and therefore does not directly use up resources produced
by the economy. Rather, it transfers funds to eligible beneficiaries
r

under social security, Medicare, the GI bill, and various other programs,
who then purchase goods and services for themselves.
Similarly, the Federal Government will grant significant amounts
of Federal funds to the States to use for such purposes as education,
air and water pollution, crime prevention, highway construction, and
public assistance payments.
National defense programs account for $79.8 billion, or 44%, of the
estimated 1969 expenditure total. About one-third of defense expenditures are for our operations in Vietnam. Defense expenditures in 1969
are expected to be $3.3 billion higher than in 1968—$1.3 billion of the
increase is accounted for by Vietnam, the remainder by other defense
programs.
Civilian expenditures are estimated at $103.0 billion in 1969, and
account for 56% of total expenditures.
• Health, labor, and welfare programs ($51.9 billion) make up onehalf of total civilian expenditures. The social insurance trust
funds—chiefly social security, unemployment insurance, and
Medicare—account for $39.5 billion of the spending for this
category.
• Other major social programs—notably education and housing and
community development—represent another $5.8 billion in
expenditures.
These three functional categories combined will account for 56% of
civilian expenditures in 1969. They will increase by $6.5 billion between
1968 and 1969, accounting for two-thirds of the overall rise in civilian
program spending.
All other expenditures will comprise 25% of estimated total expenditures and will rise by $3.2 billion in 1969.
In addition to these expenditures, the 1969 budget carries $3.3 billion
for net lending, a decrease of $2.5 billion from 1968. The largest lending
programs are conducted in connection with housing and community
development and agriculture and agricultural resources. The net lending activity in these two functions alone accounts for 76% of total net
lending estimated for 1969.
The decline in net lending from 1968 to 1969 results mainly from
reduced purchases of mortgages in the secondary market operations of
the Federal National Mortgage Association, as greater reliance will be
placed on the private credit market.

$ Billions
200-

Vietnam

^ i j ,»L* Z^//yy//////A/////.
Social Insurance Trust Funds

Estimate

The $186.1 billion in total budget outlays—expenditures plus net
lending—represents an increase of $10.4 billion from the current fiscal
year. Almost all of this increase is accounted for by rising outlays
for defense and for relatively fixed charges under present laws.
Major increases in outlays from 1968 to 1969 are:
• $3.3 billion for national defense—the largest single increase—for
Vietnam and selective improvements to our forces.
• $1.6 billion for military and civilian pay increases enacted last
year.
• $4.2 billion for the social insurance trust funds—chiefly social
security, unemployment insurance, and Medicare.
• $0.5 billion for other outlays of the Department of Health, Education, and Welfare, largely for public assistance and medical care
for the poor.
Major decreases from 1968 to 1969 include:
• $1.3 billion for the Department of Housing and Urban Development, reflecting the decline in mortgage purchases.
• $230 million for the National Aeronautics and Space Administration, because requirements for the Apollo program are declining.
• $320 million for the Post Office, reflecting the postal rate increase
enacted in 1967.
16

BUDGET

OUTLAYS

[Fiscal years. In millions]
Function

1967
actual

1968
estimate

1969
estimate

Expenditures:
National defense
Excluding special Vietnam

$70, 095

$76, 491

(49, 9 6 1 )

( 5 1 , 960)

4,110

4, 330

(3,687)

(3, 872)

Space research and technology

5, 423

4, 803

Agriculture and agricultural resources

3,156

4,412

Natural resources

2,113

2, 416

Commerce and transportation

7, 308

7, 695

International affairs and finance
Excluding special Vietnam

577

697

39, 5 1 2

46, 396

Education

3,602

4,157

Veterans benefits and services

6, 366

6, 798

General government

2, 452

2, 618

12, 548

13, 535

Housing and community development
Health, labor, and welfare

Interest
Allowances:
Civilian and military pay increase

100

Contingencies
Undistributed intragovernmental payments:
Government contribution for employee retirement ( — )
Interest received by trust funds ( — )
Total expenditures
Total expenditures, excluding special Vietnam.

-1,735
- 2 , 287

-1,913

-2, 678

153, 238

169, 856

(132, 68l)

(144, 867)

Net lending:
International affairs and finance
Agriculture and agricultural resources.
Housing and community development.
Other
Total net lending.
Total outlays

540
1,221

716

675

899

1,135

1,708

3, 257

1,705

907

1,355
99

5,176

5,779

3,265

158, 414

Total outlays, excluding special Vietnam.

( 1 3 7 , 857)

186, 062
175, 635
(150, 646) (159, 7 9 8 )

i7
3 0 0 - 4 0 0 O—68i

Controllability

of Budget

Outlays

The ability of the Government to alter outlays in the short run
for fiscal policy purposes is limited. In many programs outlays are
fixed by law, or are otherwise relatively uncontrollable through the
annual budget process.
The following table presents the 1969 budget in terms of its controllability. Of the $186.1 billion of fiscal 1969 outlays, $79.8 billion are
for national defense, and $106.3 billion for civilian outlays.
Over two-thirds, $71.9 billion, of the civilian outlays are for programs for which outlays are relatively uncontrollable in the short run.
For example, the law requires veterans pensions and compensation to
be paid at legally established rates to eligible veterans; and interest
must be paid on the Federal debt.
C O N T R O L L A B I L I T Y OF B U D G E T

OUTLAYS

[Fiscal years. In billions]
Change,
1968 to
1969

1968
esti mate

1969
estimate

$70.1

$76.5

$79.8

+$3.3

30.3
12.5

34.3
13. 5

38.5
14.4
1.6

+4.2
+.9

4.9
4.2

5.1
5.2

5.2
5.7

+ .1
+.5

1.7

2.9
.3
.4
2.8

+.1
-.4

.3
2.4

2.8
.7
.4
2.7

57.1

64.7

71.8

+7.1

Relatively controllable civilian programs, including
outlays from prior year contracts and obligations.

35.2

39.0

39.5

+.5

Undistributed intragovernmental payments ( — ) .

-4.0

-4.6

-5.0

-.5

158.4

175.6

186.1

+10.4

T y p e of controllability

National defense
Relatively uncontrollable civilian programs:
Open-ended programs and fixed costs:
Social security, Medicare, and other social
insurance trust funds
Interest
Civilian and military pay increase
Veterans pensions, compensation, and insurance
Public assistance grants
Farm price supports (Commodity Credit
Corporation)
Postal operations
Legislative and judiciary
Other
Subtotal, relatively uncontrollable civilian programs

Total budget outlays

1967
actual

+1.6

+.1

' L e s s than $50 million.

All but $0.5 billion of the increase is accounted for by national defense programs or by relatively uncontrollable programs. Apart from
the $3.3 billion increase estimated for defense, civilian outlays are estimated to rise by $7.1 billion.
18

Of this increase:
• $4.2 billion will be spent through the various self-financed social
insurance trust funds under which benefits are fixed by law and
cannot be controlled through the budgetary process. These programs, which account for 2 1 % of total outlays, include primarily
benefit payments for social security, Medicare, unemployment
compensation, and railroad and Federal employee retirement.
• An additional $1.3 billion of the increase represents outlays for
interest on the public debt, veterans compensation and pensions,
public assistance and other commitments established by law.
These outlays amount to 17% of total outlays.
• Pay legislation enacted last year for Federal military and civilian
employees provides for an additional salary increase effective
July 1, 1968, which will add $1.6 billion to outlays in fiscal year
1969.
In the 1969 budget, the portion of outlays which may be considered
relatively "controllable," including outlays from prior year contracts
and obligations, amounts to 2 1 % of the total outlays estimated for the
year. Within the total of relatively controllable civilian outlays are significant portions of our education and community development
programs; veterans hospital care; the food stamp and school lunch
programs; the F B I and other law enforcement activities; and air safety
and air traffic control, among others.
The increase over 1968 for programs in this category has been held
to $0.5 billion. The rise is more than accounted for by the increase of
$1 /4 to $2 billion in payments on prior contracts and obligations—such
as payments for the completion of ships already under construction.
On the other hand, budget outlays by the Federal National Mortgage
Association trust fund are scheduled to decline. All other outlays in
relatively controllable civilian programs will be essentially unchanged
from 1968 to 1969.
Within the relatively stable total of controllable outlays, however, there are a large number of individual increases and decreases
which roughly offset each other. Tight budgeting does not mean an
indiscriminate "hold-the-line" on all programs. Rather, it implies a
rigorous application of priorities, providing increases where needs are
urgent and returns high, slowing the growth of programs with less
urgent priority, and reducing outlays where requirements have decreased or programs have become outmoded.

In the application of this priority system, the 1969 budget provides
selective increases for a number of urgent domestic programs, particularly :
• manpower training;
• Model Cities;
• programs to control the rising crime rate;
• family planning and health care for mothers and infants;
• air and water pollution control; and
research in better methods of education, and assistance in raising
the supply of qualified teachers.
BUDGET OUTLAYS—SELECTIVE PROGRAM CHANGES
[Fiscal years. In billions]
1968
estimate

1969
estimate

$70.1

$76.5

$79.8

+$3.3

30.3

34.4

38.6

+4.2

Education

4.0

4.5

3.4
1.1

4.3

4.7
4.8

+.2

Health (excluding Medicare)

1.5
3.9

1.9
4.6

1.1
.2

1.9
.4

12.5

13.5

34.2
-4.0

36.9
-4.6

158.4

175.6

186.1

+10.4

Description

National defense

1967
actual

Change,
1968 to
1969

Social security, Medicare, and other social insurance trust funds
Other major social programs:

Labor and manpower
Economic opportunity programs
Welfare

1.3

1.5
2.0
4.9

+.5
+.2
+.1
+.3

Urban community development, and low and
moderate income housing
Regional development
Interest
Pay increases for military and civilian employees.
All other
Undistributed intragovernmental payments ( — ) .
Total budget outlays

2.3

+.4

•5
14.4
1.6

+.1
+.9
+1.6

36.0

-.8

-5.0

-.5

Budget Program Reductions and Reforms
The 1969 budget recommends two kinds of measures to reduce
Federal outlays.
• Budget reductions are proposed in the form of cuts in existing program levels which will not alter the character of the affected program. For example, temporary reductions are recommended in
certain construction outlays, not because the programs concerned
have outlived their usefulness, but because a deferral of this con20

BUDGET PROGRAM REDUCTIONS A N D REFORMS
[Fiscal years.

In millions]

Program

Cuts below 1968
program level, as
funded
1969

Budget reductions:
N A S A (manned space flight and other)

-$447

Education programs (mainly books and equipment and college facility
grants)

-361

Agriculture (loan programs and other)

-197

Ship construction subsidies and research

-163

General Services Administration (construction)

-143

Small Business Administration (loan programs)

-90

Interior (construction)

-61

Health facilities (research and medical library)

-39

Atomic energy programs (special nuclear materials and other)

-36

Other reductions

-95

Total, budget reductions

-1,632

Program reforms:
Private housing—place greater reliance on the private market
Transportation—charge users for benefits received
Education—tie impacted aid more closely to Federal burden
Veterans—eliminate overlapping and outmoded benefits
Agricultural conservation program—limit to long-term benefits
S B A disaster loans—employ more equitable and rigorous criteria
Other reforms
Total, program reforms
Grand total, budget program reductions and reforms, 1969

struction is appropriate in a period when we are striving to reduce
the Federal deficit and contain inflationary pressures. Such reductions are estimated to bring the affected 1969 programs some $1.6
billion below 1968 appropriated levels.
• Program reforms represent a revamping of ongoing activities to
bring them more into line with current program priorities. Under
the proposals, the program level of the older outmoded activities
would be reduced, or in certain cases, user charges will be imposed
or increased on those who benefit directly from Federal services.
These proposed reforms are estimated to reduce the 1969 budgetary
burden for these programs by $1.2 billion below 1968 levels.

The combination of budget reductions and program reforms for
1969 will reduce program obligations or commitments by about $2.9
billion below currently estimated levels. In many cases, the value of
these program reductions and reforms would rise in 1970. These proposals, shown in the accompanying table, will touch nearly every
major agency in the Federal Government.

PART 2

THE BUDGET PROGRAM BY FUNCTION
The outBafs
roent arc

jisto

k to tl
function, th
cipated in existing
programs' and new programs the Con~
isked to enact. The
indicates the relative
size of each of these functions.
Apart from the outlays estimated in
the functional categories, the budget

includes several) allowances and adjustments. An estimated $2 billion in
allowances is provided in addition jo
the functional figures for | i ) the sec^
^say increase enacted
i<jj$7 for military and civilian perunforeseen continossible costs of programs on which detailed, specific
proposals have not yet been completely
formulated.

1969 O u t l a y s by Function

National Defense
Health, Labor, and
Welfare
Interest
Commerce and
Transportation
Veterans
Agriculture
International
Education
Space Research and
Technology
Housing and Community
Development
General Government
Natural Resources

NATIONAL DEFENSE
1969 Outlays
Expenditures—
Net Lending

$79,792 Million
$
—4 Million

$79, 789 Million

EXPENDITURES
DEPARTMENT O f

DEFENSE-MILITARY

MILLIONS

Procurement
Military Personnel
Operation and Maintenance

MHHMHHMMMHHH17,800
Research and Development

SOS
M i l i t a r y Construction, Civil Defense, and Other

ATOMIC ENERGY

fHHH2546
MILITARY

ASSISTANCE

1455
DEFENSE-RELATED

ACTIVITIES

1 242

^ ^
mm
Fedtral Funds

6Wfc

Trust Funds

N o t e : T h e figures for D O D a n d d e f e n s e r e l a t e d a c t i v i t i e s a r e not a d j u s t e d for ? 7 million of i n t e r f u n d a n d
i n t r a g o v e r n m e n t a l t r a n s a c t i o n s a n d # 2 4 9 million of p r o p r i e t a r y r e c e i p t s ; t h u s t h e a m o u n t s s h o w n a b o v e a d d to
m o r e t h a n the t o t a l b u d g e t o u t l a y s for the f u n c t i o n .

Our defense forces are designed to
preserve the freedom and territorial
integrity of this Nation and its allies.
The funds requested in the budget
should be sufficient to provide all
the forces and equipment needed to
defend South Vietnam and to maintain and improve the overall preparedness of our other defense forces.
Outlays for national defense in
1969 are estimated to increase by $3.3
billion over 1968, and $9.7 billion
over 1967. Stringent standards were

applied in the review of all expenditures. Where military and international conditions dictate, vital programs have been expanded. At the
same time a careful review is being
continued to identify those programs
which can be reduced, deferred or
stretched out without reducing overall
defense readiness.
Support of Vietnam.—The following table shows the special costs of
Vietnam.

ESTIMATED

EXPENDITURES

FOR SPECIAL
OPERATIONS

SUPPORT

VIETNAM

[In millions]
Defense
expenditures,
excluding
Vietnam

Fiscal year

$46,070
48, 597
47, 333
49,163
50, 874

1965
1966
1967
1968
1969
1

Special Vietnam expenditures
Defense

Economic
assistance 1

$103
5, 812
20,133
24, 531
25, 784

$282
424
458
480

Total

$103
6,094
20, 557
24, 989
26,264

These expenditures are included under International Affairs and Finance.

Our large and rapidly-increasing deployments to Vietnam have begun to
level off, and have not been made at
the expense of forces required for
other missions—as shown in the accompanying table.
Department of

TOTAL MILITARY PERSONNEL
AND DEPLOYMENTS T O
S O U T H E A S T ASIA
[In thousands]
Date

Total
military
personnel

Military
personnel in
Southeast
Asia

2,685
2,653
3,092
3,376

21
103
322
529

3,400

568

Defense—Military

For purposes of planning, the Department of Defense groups its forces
in terms of major programs. Each program combines forces—regardless of
the branch of military service—into
the major military missions which
must be performed. The table on page
26 briefly summarizes the forces
planned for the major programs by
the end of fiscal year 1969.

J u n e 30, 1964
J u n e 30, 1965
J u n e 30, 1966
J u n e 30, 1967

December 31, 1967,
estimate

Strategic forces.—Our strategic
forces constitute a powerful deterrent
to nuclear aggression. We maintain a
varied, reliable, and credible force

25
300—400 O — 6 8

SUMMARY

OF ACTIVE

FORCES

Description

SELECTED

FORCES

PROGRAM

Strategic Forces:
Intercontinental ballistic missile squadrons
Polaris submarines/missiles (in commission)
Strategic bomber wings
Manned fighter interceptor squadrons
General Purpose Forces:
Army Divisions
Warships (in commission)
Amphibious assault ships (in commission)
Marine Corps divisions/aircraft wings
Air Force tactical forces squadrons
Airlift a n d Sealift Forces:
Aircraft squadrons
Troopships, cargo ships, and tankers
SELECTED DEPARTMENTWIDE

TOTALS

Active aircraft (all programs)
Commissioned ships in fleet (all programs)
Military personnel (in thousands):
Army
Navy
Marine Corps
Air Force
Total, Department of Defense

which can withstand a surprise attack
and still destroy an aggressor.
Under the budget proposed for 1969
these forces will be strengthened
through ( 1 ) the provision of multiple,
independently targetable warheads for
our Minuteman and Poseidon missile
systems, (2) the continued improvement of our manned bomber force,
(3) the procurement of the Sentinel
ballistic missile defense system to
counter the threat posed by the emerging Chinese nuclear capability, and

(4) the revamping of our air defense
system.
General purpose forces.—Powerful and versatile tactical forces are required to counter a wide range of lesser
threats against which the use of strategic nuclear power would not be appropriate. Most of our defense forces
are for this mission.
The 1969 program will provide for
all of our needs in Vietnam and for
such selective improvements as: ( 1 )
increased land force firepower, mo-

bility, and defense against air attack,
(2) a vigorous ship construction and
conversion program, and (3) continued procurement of modern tactical
aircraft.
Airlift and sealift.—These forces
include the cargo- and troop-carrying
ships and planes which can move the
armed forces rapidly over great distances and sustain them in combat.
This ability is designed to permit effective counteraction in the early stages
of a conflict. In 1969, the budget provides for continuing funds to purchase
the giant C - 5 A air transport and requests funds for the first four of a new
series of fast deployment logistics ships.
Research and
development.—
This program is the Nation's investment in the future of our national
security. Included are the development
costs of weapon systems and equipment not yet approved for operational
use. Systems already approved for procurement are reflected in the appropriate mission-oriented programs. The
new Sentinel system, for example, is
funded in the Strategic forces program. The 1969 budget emphasizes
development projects to improve our
strategic offensive and defensive capabilities, to identify the next generation
of tactical aircraft, to improve land and
sea force defenses against attack, and
to meet land-combat needs—particularly in Southeast Asia.
Military

Assistance

This Nation continues to assist allies
which are unable to provide fully for
their own defense. Expenditures for
military assistance grants and credit
sales in 1969 are estimated at $525

million, compared with $550 million
in 1968.
Atomic

Energy

The Atomic Energy Commission is
responsible for developing and manufacturing nuclear weapons, improving
nuclear power reactors for propulsion
of naval ships and generation of electric power, enriching nuclear fuels for
atomic power plants, pursuing the
various applications of atomic energy
to peaceful uses, and conducting basic
research in the physical and biomedical sciences.
Expenditures will rise in 1969 by
$213 million, primarily in the weapons
program to develop and prepare to
produce the nuclear warhead for the
Sentinel ballistic missile defense system. Smaller increases in the reactor
development and basic research programs will be partially offset by a decline in expenditures for procurement
of raw uranium concentrates.
Development efforts will be further
intensified on the "fast breeder"
civilian power reactor, which promises
to produce more fissionable fuel than
it consumes while producing electric
power.
National Defense

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays
total budget
(in millions)
outlays
$79,789
76, 489
70, 092
56, 770
49, 583
53,651
52, 211
51,179
47, 491

42.9%
43.5
44.2
42.2
42.0
45.2
46.9
47.8
48.5

INTERNATIONAL AFFAIRS AND FINANCE

1969 Outlays
Expenditures
Net Lending

$4,478 Million
$ 675 Million

$5,153 Million

EXPENDITURES

MILLIONS

Food for Freedom
J g / g f ^

670

Development Loans

Economic and
Financial
Programs

H H H M f l M H M H N H f l i
Supporting Assistance

621

M M H H H M H M H M 1
Alliance f o r Progress

HMMfli2,6

Technical Cooperation

• N M M M N B

Other

Conduct of Foreign A f f a i r s
H H M H H b

2 5 5

Foreign Information and Exchange Activities

NET

LENDING

HHHHHHHHHHHHH
Export-Import Bank

675
M B

Ftdtral Funds

% Mbf Trust Funds

N o t e : T h e a m o u n t s s h o w n a b o v e a r e n o t a d j u s t e d for # 1 4 4 million of p r o p r i e t a r y r e c e i p t s ; t h u s t h e y a d d t o m o r e
than the total b u d g e t o u t l a y s for the function.

The fundamental objective of our
international programs is to promote
a peaceful world community in which
all peoples can progress toward more
satisfying lives. We share with all nations a responsibility for helping to
create such a world community.
Economic and Financial

Programs

Economic assistance programs directly serve the security and well-being
of the United States by supporting
the economic and social progress of the
peoples of less developed countries.
By cooperating with other developed
nations and by channeling an increas-

ing share of assistance through multilateral agencies, we seek greater effectiveness in the use of our aid.
Outlays for economic aid programs
administered by the Agency for International Development ( A I D ) , and for
shipments of food under the Food for
Freedom program amount to $3.7 billion in 1969. Continued aid will be
concentrated in those countries that
demonstrate their desire to help themselves by taking the difficult self-help
steps necessary to stimulate and sustain
economic growth and social progress.
A I D outlays are estimated to be $2.3
billion in 1969. In line with the pro-

gram to improve the U.S. balance of
payments, A I D will take steps to insure that more than 90% of its total
outlays in 1969 will be for purchases
of goods and services in the United
States, compared with 82% in 1966.
Alliance for Progress.—The Alliance encourages the economic and social reforms needed to promote orderly
economic and political development in
Latin America. In 1969, our assistance
will be increased in accord with the
decisions reached by the American
Presidents at Punta del Este in April
1967 to increase agricultural production, promote education, foster science
and technology, and help establish the
foundation for a common market in
Latin America.
Development loans and technical
cooperation.—Development
loans—
concentrated in key countries other
than Latin America—support a wide
range of activities such as schools,
fertilizer plants, transportation facilities and imports of machinery and
materials to stimulate private production. The United States also pays
part of the costs of technical advisors
whose experience and skills are needed
to solve the complex problems of
economic and social development,
particularly in agriculture, health,
education, and family planning.
Supporting
assistance.—Grants
and loans are provided in a limited
number of countries to strengthen political stability and security in order
to maintain an environment in which
economic and social development are
possible. In 1969, Vietnam will receive almost 80% of this type of assistance.

Other programs.—Several other
programs support our international
objectives:
• In 1969, contributions will be made
to the Inter-American Development
Bank and the Asian Development
Bank. Upon completion of negotiations among donor nations, legislation will be sought to authorize a
new contribution to the International Development Association. All
of these institutions provide greatly
needed financial resources to developing nations.
• The Peace Corps will be active in
about 60 countries in 1969, and will
emphasize programs in agriculture,
health, and education.
• The United States will continue to
share the cost of supporting the
United Nations and over 60 other
international organizations of which
this Nation is a member.
• The Export-Import Bank will aid
U.S. exports by insuring, financing,
and guaranteeing export loans. A
new Export Expansion Program to
extend the Bank's activity will be
proposed.
The chart on the following page
shows program trends by region, summarizing the individual country programs which are the basic A I D programing units.
Food for Freedom
With large U.S. surplus food stocks
eliminated, and the world food problem still critical, legislation in 1966
provided fundamental new directions
in the Food for Freedom program.
Principal among these was the recognition that, in the long run, adequate
food supplies in developing nations
must come primarily from increased

A g c n c y for I n t e r n a t i o n a l D e v e l o p m e n t - Program Trends

$ Billions
3.0 -

° 1961

1962

1963

1964

1965

1966

Fiscal Years

and

The Department of State and
United States Information Agency will
conduct programs aimed at improving the world's understanding of our
Nation and our foreign policy. Mo-

3°

1968

1969

Estimate

agricultural production by these countries themselves.
Such changes, however, cannot be
accomplished overnight. In the short
run, the United States will continue to
help fill the gap between food supplies
and requirements by providing shipments of U.S. agricultural commodities. These shipments will total $1.4
billion in 1969. Sales of food for local
currency are being replaced by food
shipments paid for in dollars.
Foreign Information
Exchange Activities

1967

tion pictures, publications, radio and
television broadcasts, and cultural and
educational exchange activities are
used to accomplish this goal. USIA
activities will be increased in Latin
America and Europe.
International Affairs a n d Finance

Fiscal year

1969 estimate
1968 estimate
1967
1966

Total
Percent of
outlays
total budget
(in millions)
outlays
$5, 153
5,046

2.8%
2.9

4, 650

2.9

4,443
4,175

3.3

1963
1962

4,151
4,184
4,562

3.5
3.8

1961

3, 369

1965
1964

3.5

4.3
3.4

SPACE RESEARCH AND TECHNOLOGY
1969 Outlays

$4, 573 Million
$

EXPENDITURES

MILLIONS

mmgm 2,993

M a n n e d S p a c e Flight

9 H H H H H 644

S p a c e Science and Applications

•

Space
•

425

Technology

l20
Aircraft T e c h n o l o g y

HHHH

Supporting

394
Activities

Federal Funds

Trust Funds

N o t e : T h e a m o u n t s s h o w n a b o v e are n o t a d j u s t e d f o r $1 m i l l i o n of p r o p r i e t a r y r e c e i p t s ; t h u s t h e y a d d t o m o r e
than the total b u d g e t o u t l a y s for the function.

The National Aeronautics and Space
Administration (NASA) will continue in 1969 with programs to improve our ability to operate in the
space environment, advance man's
knowledge of the universe, and use
the experience gained for man's benefit.
As in the current fiscal year, expenditures will continue to decline,
since major systems for the Apollo
program for a manned landing on the
moon have progressed beyond the
most costly phase of development. As
a result of this progress and a stringent
review of proposed new projects, expenditures for 1969 will be $230 million below the $4.8 billion estimated
for 1968.
Manned
space
flight.—Flight
tests of systems for the Apollo program, begun in the current fiscal year,
will continue at a stepped-up pace as
we approach our goal of placing a man
on the moon by 1970. As these systems—the Saturn V launch vehicle,

Apollo spacecraft, and lunar module—are demonstrated to be flightworthy, they will be tested by astronauts in earth orbit before a mission
to the moon is undertaken.
Planning and development for the
Apollo Applications program will continue in 1969. After the manned lunar
landing, earth orbital flights will be
undertaken, using launch vehicles and
spacecraft originally developed for the
Apollo program, and a manned
orbiting workshop will be used to extend man's ability to operate effectively in space and conduct scientific
experiments.
Space science and applications.—
Unmanned exploration of the moon—
in preparation for the manned lunar
landing—terminates in the current fiscal year. Continuation of unmanned
exploration of the planets is planned,
with requested 1969 funds to be used
for the development of flights to Mars
in 1969, i97i,and 1973.

S Billions

Space Research and Technology

Applications

1958

1959

I960

1961

I96S

1963

1964

Fiiepl Y«a«

Increased funds are requested in
1969 to advance the technology for
conducting resource surveys of the
earth by use of spacecraft. Such systems eventually may be able to provide
long-term economic benefits to man in
mineral exploration, agriculture, and
oceanography,

Space technology and aircraft
technology,*= Research will continue on a number of promising components and systems for possible
future space and aeronautics missions. Examples are a 75,ooo-poundthrust nuclear engine, which will significantly increase the capability of
the Saturn V , and research in aero-

Estimate

nautics=ranging from helicopters to
aircraft capable of flying at hypersonic
speeds.

Space Reseaich and Technology

Fiscal year

1969 e s t i m a t e , . . . . . .
1968 e s t i m a t e . . . . . . .
1967

Total
Percent of
total budget
outlays
outlays
(in millions)

$4, 573
4, 803

2.5%
2.7

5, 423

3,4

5, 932

4.4

1965

5, 091

4,3

1964,,

4,171

3.5

1963

2, 552

2.3

1962,.

1, 257
744

1.2

i 966

1961..

AGRICULTURE AND AGRICULTURAL RESOURCES

1969 Outlays
Expenditures--

$4,474 Million

Net Lending__

5 1 , 1 3 5 Million

EXPENDITURES

$5, 609 Million

1 MILUONS

fismtw income Stabilization

BBH350

Agricultural L a n d a n d W a t e r Resources

HflHHHBi 7 ( 5 ) 7

Research a n d Other Agricultural Services

NET LENDING
Farming a n d Rural H o u s i n g

HUH36®

Rural Electrification a n d Telephones

24
Farm Income Stabilization

M B Federal Funds ^^ Tratt fundi

N o t e : T h e a m o u n t s shown a b o v e a r e not a d j u s t e d for $6 million o f irtterftrnd a n d i n t r a g o v e r a m e n t a l transactions and 336 million of p r o p r i e t a r y receipts; thus t h e y a d d to more than the t o t a l b u d g e t o u t l a y s for the
function.

Federal agricultural programs arc
designed to support and enlarge the
contribution of our farm and rural
economy to the Nation's overall prosperity. American agriculture possesses
an unparalleled productive capacity.
Today, one farmer feeds and clothes
more than three times as many people
as he was able to sustain 25 years ago.
However, many rural people have benefited little from this progress.
The Department of Agriculture
helps to provide economic oppor
tunities for the rural poor through
financial assistance for low-income
rural housing, multicountv area development. and improved public services and facilities in rural areas.
Farm income stabilization.—Outlays for price support and related programs are estimated at $2,8 billion
in 1969, These programs are designed

to assure adequate supplies of agricultural commodities and an adequate
income for our farmers.
Financing
rural
electrification
attd rural telephones.—The Rural
Electrification Administration pro
vides needed financial assistance for
the distribution of electric power and
improved telephone service to rural
areas. In 1969, $470 million of new
loans will be made for these purposes.
Agricultural land and water resources.—The Department of Agri
culture provides technical and finan
cial assistance to farmers to promote
land and water conservation practices.
Several pilot projects are underway to
help local communities carry out plans
for orderly improvement, conservation. and utilization of their natural
resources.

33
300-400

Financing farming and rural
housing.—The Farmers Home Administration makes direct Federal
loans and insures private loans to enable farmers and other rural residents
to improve farm income and rural
housing. In addition, this agency provides assistance to small communities
for planning and construction of
sewers and for water purification and
distribution facilities. Loans made
through the banking activities of the
Farm Credit Administration are primarily to help finance the production
and marketing of farm products.
Research and other agricultural
services.—In the interest of maintaining high standards of nutrition and
health for the Nation, the Government
supports agricultural research activi-

ties as well as plant and animal inspection. Funds requested to carry out
the provisions of the Wholesome Meat
Act will help the States to develop
more effective intrastate meat inspection systems.
Agriculture and Agricultural Resources

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays total budget
(in millions) outlays
$5,609
5,311
4,377
3,675
4,809
5,187
5,129
4,139
3,339

3.0%
3.0
2.8
2.7
4.1
4.4
4.6
3.9
3.4

NATURAL RESOURCES
1969 Outlays
Expenditures
Net Lending

$2, 490 Million
$2, 483 Million
$
7 Million

EXPENDITURES
L a n d , W a f e r a n d Power

MILLIONS

HHK2536

Resources

! 493

Recreation

•BP58

Fish* a n d

Wildlife

H131

Minerals
239

G e n e r a l Resource Surveys a n d O t h e r

I Federal Funds

^ Trust Funds

N o t e . T h e a m o u n t ; , s h o w n a b o v e a r e n o t a d j u s t e d f o r 3 1 m i l l i o n of i n t e r f u n d a n d i n t r a g o v e r n m e n t a l t r a n s a c t i o n s a n d $ 1 , 3 8 1 m i l l i o n of p r o p r i e t a r y r e c e i p t s ; t h u s t h e y a d d t o m o r e t h a n t h e t o t a l b u d g e t o u t l a y s for t h e
function.

Conservation and development of
our natural resources are essential to
the Nation's continued economic
growth and to the needs of our growing population. The 1969 budget
provides for improvement of water
quality and supply, protection of our
forests, conservation of fish and wildlife, development of mineral resources,
and the acquisition of recreational
areas.
Land, water, and power
resources.—Water resource programs,
which include flood control, irrigation,
watershed protection, navigation, and
related water projects, account for twothirds of all activities for natural resources. Many of these programs
involve multiple-purpose projects, providing electric power, water supply,
fish and wildlife, and recreation bene-

fits. In addition, Federal grants are
made to assist municipalities in the
construction of waste treatment plants.
Because water problems are becoming increasingly critical in various
parts of the country, legislation has
been recommended to establish a National Water Commission to assess the
problems and to outline actions for
achieving more effective policies and
programs.
Increasing emphasis is being given
to pollution control programs which
improve water quality for public
water supplies and industrial use. Research in finding new sources of water
through low-cost desalting methods
and weather modification will be pursued in 1969.
The T V A will proceed with construction of a nuclear powerplant to
meet increasing power needs.

Legislation has been proposed which
will help improve reliability and minimize future risk of extensive power
failures by encouraging comprehensive planning of the Nation's electrical
power systems.
The well-being of Indian people will
be advanced through programs of the
Bureau of Indian Affairs to assist in
job training, provide improved housing, expand employment opportunities, and improve education.
Forest resources.—The 154 national forests provide about 25% of the
Nation's timber supply while also providing recreational activities, including hunting and fishing, for millions
of visitors each year. In addition, forest lands supply watershed protection
and grazing for livestock.
Recreation.—The demand for outdoor recreational resources expands at
a rapid rate with increases in population and income. The number of visitors to national parks and other Federal recreational areas—one indicator
of increased demand—has risen from
351 million in i960 to an estimated
758 million in 1969, an increase of
116%. Increased expenditures in 1969

are proposed for the acquisition of
recreational lands.
Minerals, fish, wildlife,
and
other.—Research on the abatement of
air and water pollution from the use
of coal and oil is being emphasized.
Legislation will be proposed to regulate strip mining operations which
have left ugly scars on millions of
acres of land and created serious
water pollution problems.
The Bureau of Sport Fisheries and
Wildlife will operate 91 fish hatcheries and 318 wildlife refuges in 1969.
The Bureau of Commercial Fisheries
will construct a fish protein concentrate pilot plant to help meet the need
for a low-cost, nutritious diet supplement.
Natural Resources

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays total budget
(in millions) outlays
$2,490
2,432
2,132
2,186
2,156
2,065
1,625
1,757
1,644

1.3%
1.4
1.3
1.6
1.8
1.7
1.5
1.6
1.7

COMMERCE AND

1969 Outlays
Expenditures-Net Lending—

TRANSPORTATION

$7,996 Million
$ 125 Million

$8,121 Million

EXPENDITURES

WfMtMMflMMMMZMfr.

mmmmmmm,

MILLIONS
^

4,420

G r o u n d Transportation

HHHHHHHHH1282
A i r Transportation

9HHHHHK

1000

W a t e r Transportation

H H H H I 767
P o s t a l Service

BHHI

A r e a and Regional Development

HI260

A d v a n c e m e n t o f Business a n d O t h e r

NET

LENDING
|

125
Total

N o t e : T h e a m o u n t s shown a b o v e are not a d j u s t e d
a c t i o n s a n d $ 1 4 9 m i l l i o n of p r o p r i e t a r y r e c e i p t s ; t h u s
function.

The Federal Government invests in
facilities and services which add to
present economic strength and lay the
foundation for future growth. Programs to improve transportation and
communication services, assist business, develop depressed areas, and
assure effective competition and fair
business practices will be strengthened
in 1969. More than half of the total
outlays for these programs will be
devoted to highway construction.
Transportation
Continued economic advance and
increased population mobility bring
growing demands for a safe and efficient national transportation network.
The new Department of Transporta-

H H

Federal Funds

W/.% Trust Funds

J58 m i l l i o n of i n t e r f u n d a n d i n t r a g o v e r n m e n t a l t r a n s ty a d d t o m o r e t h a n t h e t o t a l b u d g e t o u t l a y s f o r t h e

tion provides a focal point for the
planning and coordination of the many
Federal transportation programs. The
Department is also mounting a concerted effort to relieve congestion on
the highways and in the airways, to
augment transportation safety efforts,
and to develop new systems for highspeed, inter-city travel. The proposed
reallocation of urban transportation
responsibilities between the Departments of Transportation and Housing
and Urban Development will make
possible a coordinated approach to
urban transportation problems.
T h e budget proposes new and increased transportation user charges
to make provision of these services dependent on the willingness of users to

pay, thus shifting the financial burden
to those who benefit directly from the
Federal services.
Air
transportation.—Reflecting
the growing demand for air transportation, expenditures by the Federal
Aviation Administration for the operation of the airways will continue to
rise—providing needed improvements
in traffic control systems, construction
of airways facilities, and modernization of equipment. In addition, the
budget includes funds to continue development of the civil supersonic transport. The Government plans to recoup
its share of the costs through royalties
on sales of the aircraft.
Water transportation.—The U.S.
Merchant Marine will continue to
receive operating and construction subsidies from the Maritime Administration to help American shipping compete with fleets of other nations. Funds
will be provided for the construction of
10 new cargo vessels.
Ground transportation.—Federal
expenditures for highway programs
are estimated to be $4.4 billion in
1969. These funds provide the Federal
share of the cost of construction for the
41,000-mile Interstate Highway System (now almost three-fifths completed), construction of primary and
secondary roads, and expanded efforts
to reduce traffic congestion in urban
areas. Highway construction expenditures are financed primarily from
highway user charges, such as taxes
on gasoline, which are deposited in
the highway trust fund.
The Department of Transportation
will continue to promote highway and
motor vehicle safety through grants to

States and communities to conduct
highway safety programs and through
new and improved Federal motor
vehicle standards.
Legislation will be proposed to:
( 1 ) extend the life of the highway
trust fund and to increase the authorization to meet the higher cost now
estimated to complete the Interstate
System; and (2) provide a 1970 authorization of $1 billion for the
primary and secondary highway
system.
Postal Services
Costs for postal services are estimated to rise from $6.8 billion in 1968
to $7.3 billion in 1969. Over 90% of
the costs incurred will be covered by
receipts from operations, leaving an
estimated $78 million postal deficit,
excluding the cost of providing public
services.
Advancement

of Business

Business assistance programs, such
as collection of economic and demographic statistics, observation and
analysis of business trends, and provision of marketing and other technical
services, are helping general business
analysts as well as individual business
firms. These programs are also useful
aids in developing plans to attack social and economic problems that stem
from hard-core unemployment and
regional economic imbalance. For example, the Federal Government is
working with businessmen and local
officials to provide greater job opportunities for the unemployed in the
larger urban centers.
The Department of Commerce will
substantially expand its programs to
promote exports of American prod-

ucts through programs such as trade
and
industrial
exhibitions
and
"America Weeks." Expenditures for
these programs will increase over 40%
in 1969.
The financial and technical assistance programs of the Small Business
Administration are designed to help
small businesses which are unable to
obtain such help from other sources.
During 1968 and 1969, SBA will increase its efforts to encourage wider
participation by private banks and to
assist small businessmen in central
cities and rural areas.
Area

and regional

development

The major objectives of our economic development programs are to
reduce unemployment and to increase
family incomes in the Nation's most
seriously lagging areas. In 1969, the
Economic Development Administration will stress industrial loans to development centers, and loans and
grants for development facilities in our
most depressed areas.
The development program of the
Appalachian Regional Commission
provides public facilities and services
in areas which are critical to the eco-

nomic growth of the region. Emphasis
is being given to the development of
a regional transportation system, improved vocational education, health
services, and utilization of natural
resources.
The five other regional commissions
(New England, Upper Great Lakes,
Ozarks, the "Four Corners" region in
the Southwest, and the Coastal Plains)
will initiate a new program authorized
in the last session of Congress to supplement grants of various Federal
agencies as a means of tying Federal
programs into an overall regional development strategy.
Commerce a n d Transportation

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Percent of
Total
outlays total budget
(in millions) outlays
$8,121
7, 853
7,446
6,982
7,318
6,422
5,661
5,387
5,003

4.4%
4.5
4.7
5.2
6.2
5.4
5.1
5.0
5.1

HOUSING AND COMMUNITY DEVELOPMENT
1969 Outlays
Expenditures-N e t Lending

$ 2 , 7 8 4 Million
$ 1 , 4 2 9 Million
S i , 355 Million

$ mutom

XPENDITURES

Urban Renewal a n d Community Facilities

HHHHB350
Public Housing Piogitams

Aiids to Ptiivafre H©ws»g

Hi104

N a t i o n a l Capital Region

Na iTLENDING
Aids
m

Private Housing

Other

Fttkmh Funds

m
MIK

Trust Funds

Note: The amounts shown .above include $ 1 4 million of interfund and intTagovernmental transactions and
exclude $1-4 nailKoti for proposed te^slatiom..

A decent home and a suitable living
environment for every American
family are goals the Federal Government pursues through grants, loans,
and insurance of private credit to State
and local governments, and to private
individuals and corporations. A 10year program is proposed to provide 6
million housing units—homes and
apartments—for low and moderate
income families. The program will
begin in 1969, under existing and proposed legislation, with 300,000 units.
Public housing
programs.—The
Federal Government, through its low
rent housing program, assists local
housing authorities in providing suitable apartments and homes for low in-

come families at rents they can afford.
This program now assists more than
650,000 low rent housing units and
an additional 133,000 will he made
available in 1968 and 1969, Expenditures for public housing programs are
expected to rise to $350 million.
Aids to private
bousing.—Housing for low income families is also assisted through the rent supplement
program. Under this program the Government pays private, nonprofit and
limited dividend sponsors the difference between rent the family can afford and the rent required to cover
the total cost of the housing. Payments
on more than 26,000 units in 1969
will total $15 million.

The Federal National Mortgage
Association (FNMA) helps meet the
housing needs of moderate income
families by buying low interest rate
mortgages, thereby making possible
reduced rents. Loan commitments in
1969 will finance about 48,000 additional homes and apartments.
To improve housing conditions and
broaden home ownership generally,
the Federal Housing Administration
insures certain private housing loans
against loss—thus encouraging lenders
to make loans with smaller down payments and longer terms that more
people can afford.
The FNMA also supports private
housing by buying and selling federally insured or guaranteed mortgages,
thereby making funds available for
housing when they are most needed.
Further support of the private housing
market is provided through the Federal Savings and Loan Insurance
Corporation by insuring accounts in
savings and loan institutions. These institutions make most of their loans for
housing purposes.
LJrban renewal and community
facilities.—Federal urban development programs place increasing emphasis on the coordination of Federal, State, and local efforts to improve
the physical and social environment
of our cities. In 1969 the first 63 cities
in the Model Cities program will have
begun concentrated action programs to
restore the physical and social fabric
of large, blighted areas. Efforts to rehabilitate or to rebuild slum areas
throughout the Nation will continue
through the urban renewal program.
The Government encourages cities
to plan their growth and develop-

ment on a comprehensive metropolitan-wide basis by providing grants
for essential community facilities
and assistance for the preservation
of open space. Comprehensive urban
planning is also directly assisted
through grants to State, regional, and
local planning agencies. Total outlays
for urban renewal and community facilities will increase to $1.5 billion in
1969 as the Model Cities program
enters its first full year of operation,
and urban renewal and public facilities projects progress.
National Capital region.—The
District of Columbia government provides both State and local government
services for the residents and businesses of the National Capital city. As
the major employer and landholder in
the District, the Federal Government
recognizes a special responsibility to
bear its proper share of the costs of
these services. Legislation is proposed
to increase the Federal Government's
contribution to the District by authorizing a payment equivalent to 25%
of the District's revenues.
Housing and Community Development

HEALTH, LABOR, AND WELFARE
1969 Outlays
Expenditures
Net Lending--

$ 5 1 , 4 0 7 Million
$51,945 Million
$ - 5 3 8 Million

EXPENDITURES

MILLIONS
\ 33,706

Social Insurance
! 8,183
Medicare a n d M e d i c a l

Assistance

2,497
es a n d Research
3,605
Public W e l f a r e (Encoding Medical Assistance)
1.997
Economic O p p o r t u n i t y Programs
1,492
Labor a n d Manpower Programs
S c h o o l Lunch, Special Milk, a n d F o o d S t a m p Programs
Other

Federal Funds

Trust Funds

N o t e : T h e a m o u n t s shown a b o v e are n o t a d j u s t e d for 2711 million of interfiled a n d i n t r a g o v e r n m e n t a l
t r a n s a c t i o n s a n d $3 million of p r o p r i e t a r y receipts; thus they a d d t o more than t h e t o t a l b u d g e t o u t l a y s f o r t h e
function.

The Federal Government carries out
a wide range of programs designed to
improve the economic, social, and
physical well-being of all Americans.
The elderly receive retirement income,
hospital insurance, and additional
health benefits through the social
security and other Federal programs.
Families are protected against the possible loss of income from the unemployment, disability, or death of the
wage earner. Other programs include
health research, manpower training,
vocational rehabilitation, and the Nation's attack on poverty. About 75%
of the total outlays for health, labor,
and welfare programs represent benefits paid through largely self-financed
trust funds.

Social insurance and public welfare.—In 1969, more than $33.8 billion in monthly cash benefits will be
paid to unemployed, retired, and disabled workers, or their survivors. Social insurance programs now cover
virtually all the Nation's workers and
their families.
Social security, the largest insurance
program, will pay out about $27 billion
in cash benefits in 1969; retired railroad and Federal employees will receive benefits of $3-9 billion from
special trust funds; and unemployment insurance benefits are estimated
at $2.6 billion.
Under the 1967 amendments to the
social security program, payments to
24 million beneficiaries will be in-

creased an average of 13% and minimum benefits raised from $44 to $55
a month, effective February 1, 1968.
The cost of these and other improvements will be financed by an increase
in the taxable wage base from $6,600
to $7,800 beginning January 1, 1968,
and by a series of increases in the combined employer-employee tax rate beginning with an increase from 8.8%
to 9.6% effective January 1, 1969.
Public assistance grants help States
and localities provide financial assistance and social services to families
and individuals. On a monthly average
basis, aid will be provided in 1969 for
more than 8.8 million of our poorest
citizens, including 4.6 million children.
Legislation enacted in 1967 established
a new work incentive and training program which will encourage welfare
recipients to seek employment and
reduce their dependency.
Despite periodic improvements, the
welfare system is outmoded and in
need of basic change. Accordingly,
a newly appointed Presidential Commission on Income Maintenance Programs is examining all aspects of
existing welfare and related programs
for the purpose of designing a more
effective and equitable system.
Economic
opportunity programs.—The Office of Economic Opportunity will continue its concentrated effort to combat poverty in 1969.
The budget proposes an increase in
oudays of $130 million over 1968, re-

flecting the continuing commitment of
the Federal Government to this task.
Community action agencies in
urban and rural communities will involve the disadvantaged in self-help
activities while providing needed services to about 9 million people.
Project Head Start will provide intensive preschool education for 652,000
underprivileged children, giving them
the special attention they need before
beginning their regular schooling. In
1969, Head Start will place greater emphasis on developing new techniques
for educating disadvantaged youngsters. Follow Through assistance to
79,000 former Head Start and other
preschool children will help sustain
gains made in preschool classes.
About 50 health centers will be in
operation in 1969 to provide comprehensive health care to residents of the
neighborhoods served. Other programs include a number of worktraining programs discussed under
"Labor and manpower," aid to migrant farm workers, loans to rural
families, and services to the poor by
Volunteers in Service to America
(VISTA).
Total Federal aid to the poor, including education, health, and cash
payments, which helps to overcome
poverty among nearly 29 million
Americans, is provided by 10 agencies.
In fiscal 1969, they will devote $27.7
billion to help the poor, 13% more
than in the current year and almost
three times the level in i960.

FEDERAL AID T O T H E P O O R
[Fiscal years. In billions]
Category

Education

1960

1963

actual

1967

actual

$0.1

$2.0

.6
8.3

.9
10.4

1.0
3.2

.5
9.5

Work and training
Health
Cash benefit payments

1968

estimate

1969

estimate

$2.3
1.2

$2.5
1.6

12.8

4.1
14.6

15.9

1.0

2.0

2.4

2.9

12.5

21.1

24.6

27.7

4.7

Other social welfare and economic
services
Total
* L e s s than $ 5 0 million.

Labor and manpower.—The Federal Government plays an important
role in our economy by providing
workers with financial assistance when
they are unemployed, and by helping
those with out-moded or minimal
skills to acquire new skills and find
new jobs. The 1969 budget has given
very high priority to programs for
equipping the disadvantaged, unemployed, and underemployed with the
skills required in an increasingly complex economy.
The major increase, in 1969, will be
for on-the-job training programs directed to the most disadvantaged in
both urban and rural areas. Provision
is also made for improved evaluation,
administration, coordination, and delivery of the varied manpower and employment services at the Federal, State,
and local level. Including programs of
the Office of Economic Opportunity
and civilian Federal agencies, training
and work experience will be provided
for about 1.3 million individuals in
1969, an increase of 322,000 over 1968.
Health services and research.—
Efforts will be made to assure that all
Americans, regardless of age, geography, or economic status, have access

to the best health care. In pursuit of
this goal the Federal Government has
increased its outlays six-fold since 1963.
Funds will be increased in 1969 to
expand the supply of health resources
including direct support to: 21,200
medical students, 9,350 dental students, 45,900 nursing students, and 27,400 students in other health professions; biomedical research; and construction of medical school and
hospital facilities. In addition, special
emphasis will be given to programs
designed to improve the organization
and delivery of health services. There
will also be experiments with new
methods of reimbursing hospitals and
physicians in order to provide high
quality services in a more economical
manner.
The provision of health services will
be supported by an estimated outlay of
$8.4 billion in 1969. Medicare and
Medicaid, which provide for the health
needs of the aged and the medically
indigent, will require an estimated
$7.9 billion in 1969. In addition, comprehensive health services will be
offered to needy mothers and children,
and health services will be provided
to Indians, merchant seamen, and
other groups who are eligible for direct

Federal care. Through the combined
efforts of these programs, an estimated
17 million persons will receive financial assistance for their medical needs
or have medical services provided to
them directly. Funds sufficient to provide family planning services to about
3 million women, will be available
through various Federal agencies.
Legislation will be proposed to provide, during the next five years, needy
mothers and their infants with comprehensive health care from the prenatal period through the first year of
the child's life.
Disease prevention and control,
environmental health, and consumer
protection activities will receive $640
million of Federal support. Increased
efforts will be made to improve air
quality by developing economically
feasible control techniques for air pollution caused by auto exhausts, the
burning of coal and oil, and other
forms of pollutants.
Other welfare services.—In 1969,
the Federal-State vocational rehabili-

tation program will restore an estimated 230,000 disabled people to employment. The school lunch program
will reach 20 million children. One
lunch out of 10 under this program
will be provided free or at reduced
price to needy children. The food
stamp program will be expanded to
reach a total of approximately 3 million low income people. Funds are also
provided for a proposed new program
to combat juvenile delinquency.
Health, Labor, and Welfare

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays total budget
(in millions) outlays
$51, 407
46,417
40,084
33,226
28,163
27, 203
25,678
23,964
22, 368

27.6%
26.4
25.3
24.7
23.9
22.9
23.1
22.4
22.8

EDUCATION
1969 Outlays
Expenditures
N e t Lending

$4, 364 Million
$ 335 Million

S4, 699 Million

EXPENDITURES

MILUONS

Elementary a n d Secondary Education
|

1,065

Higher Education

M M M H M M i ' **o

Science Education a n d Basic Research

HHHHBHHHHHHHHH905
Other A i d to Education

NET

LENDING

WKKKKKM335
Higher Education and Other

H H I

f e d e r a l funds

i HW/. fruit Funds

N o t e : T h e a m o u n t s s h o w n a b o v e art- n o t a d j u s t e d for $ 1 6 m i l l i o n of p r o p r i e t a r y r e c e i p t s ; t h u s t h e y a d d t o
more than the total b u d g e t outlays for the function.

The Federal role in education has
expanded rapidly in recent years. Estimated outlays in 1969 represent an
increase of 200% over 1965, the year
in which landmark laws were enacted
to assist elementary, secondary, and
higher education, and to promote the
arts and humanities. The central concern of the Federal Government in
recent years has been to promote improved education for the disadvantaged.
The 1969 budget continues our commitment to overcoming barriers of
race, ethnic origin, place of residence,
income, or mental and physical handicaps. Increases are included for programs to improve the quality of education, expand the number of qualified
teachers, educate the handicapped,
and prevent dropouts. At the same
time, the budget proposes reductions in
grants for buildings and equipment.

Elementary and secondary education.—In 1969, Si.9 billion will be
spent primarily for education of
the poor, the handicapped, and other
disadvantaged students. Grants of $1.2
billion will provide improved educational programs in schools serving 9.5
million children from low-income
families. Spending for the Teacher
Corps, the mentally and physically
handicapped, and children whose native language is not English will total
$88 million, $35 million more than the
1968 level.
One of the most serious difficulties
experienced by local school officials in
the use of Federal funds has been that
the amount of Federal appropriations
is often not determined until well into
the academic year. The budget proposes that appropriations be made
well in advance of the school year so
that local districts can make their

financial, personnel, and other plans
more effectively.
Higher education.—Outlays for
higher education are primarily for
financial aid to college students and
construction of academic and housing
facilities.
Through Federal programs, 2.1 million grants, loans, insured loans, and
work-study opportunities, including
GI bill benefits, will be provided for
college students. Legislation will be
proposed to provide more administrative flexibility in student aid and to
assist the disadvantaged through special tutoring and counseling services.
Grants and loans for the construction of academic and housing facilities
for colleges and universities will be
$543 million in 1969, a reduction of
$144 million from 1968. This reduction reflects the lower priority being
given these programs, as compared
with student assistance, in a period of
budget stringency.
Science education and basic research.—Expenditures for the National Science Foundation's broad
range of science education and research programs are expected to rise
by $24 million in 1969. Most of this
increase will be used to improve the
quality of science training and research
in colleges and universities. The rest
will be for basic research in fields of
growing national concern, such as
oceanography, and the environmental
and social sciences.

Other aids to education.—The
budget provides for activities under
legislation enacted in 1967, which expanded and broadened Federal authority to improve teacher training.
More than 95,000 elementary and secondary teachers, and nearly 27,500 college teachers will be trained in 1969
through Office of Education and National Science Foundation programs.
Expansion of educational research,
development, and demonstration activities will permit several large-scale
experiments in education of preschool
and school-age urban ghetto children,
and evaluations of current Federal education programs.
New legislation will be proposed to:
• experiment with different methods
of providing vocational education,
particularly for students not going
on to college; and
• provide advance financing for the
newly established Corporation for
Public Broadcasting.
Education
Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays total budget
(in millions) outlays
$4,699
4,541
4, 047
2,825
1,538
1,334
1,241
1,073
941

2.5%
2.6
2.6
2.1
1.3
1.1
1.1
1.0
1.0

VETERANS BENEFITS AND SERVICES
K)6<) O u t l a y s

Expenditures-Net Lending __

$7,131 Million
$ 211 Million

S \ M2

EXPENDITURES

Million

MILLIONS
2.461

Service C o n n e c t e d

Compensation
2,101

Non-Service Connected

Pensions

Hospitals and Medical

Care

11,546

HHHHHHHH604
E d u c a t i o n a n d Training

NET

O t h e r Benefits a n d Services

LENDING

H o u s i n g , Insurance a n d

Other

I Federal Funds

W/t. Trust Funds

N o t e : T h e a m o u n t s s h o w n a b o v e a r e n o t a d j u s t e d f o r $5 m i l l i o n of i n t e r f u n d a n d i n t r a g o v e r n m e n t a l t r a n s a c t i o n s a n d $ 4 8 9 million of p r o p r i e t a r y receipts; thus t h e y a d d t o more than the t o t a l b u d g e t o u t l a y s for the
function.

The Federal Government provides
special benefits and services to veterans
of the Nation's wars or their survivors.
The 1969 budget reflects increasing
attention to the needs of newly discharged servicemen, currently returning to civilian life at a rate of approximately 800,000 a year compared to
500,000 just before the buildup in Vietnam. More than half a billion dollars is allocated to a Government-wide
effort to help these veterans find
satisfactory employment or to improve
their career opportunities through vocational or academic training programs. However, the largest portion
of Federal outlays for veterans benefits
continues to be devoted to the payment
of compensation, pensions, and the
cost of medical programs, primarily
to veterans of earlier wars.

Legislation is being proposed to improve veterans programs, including:
• Closer correlation of pensions to
need, as measured by the veteran's
other sources of income.
• Elimination of certain clearly duplicative, inequitable, or outmoded
benefits.
Service-connected
compensation.—Veterans
who incurred or
aggravated a disease or an injury in
military service are awarded monthly
compensation payments which are
graduated according to the degree of
disability involved. Survivors of veterans whose death is direcdy attributable to military service are also
awarded monthly payments in recognition of the economic hardship imposed on the family. In 1969, payments

of $2.5 billion will be made to 2.3
million veterans or their survivors.
Nonservice
connected
pensions.—Disabled veterans and other
veterans in financial need may qualify
for special pension payments. Veterans' widows and children who can
demonstrate need may also be eligible
for pension payments. In 1969, $2.1
billion in pension benefits will be paid
to 2.2 million recipients.
Hospitals and medical care.—
Federal expenditures for hospital and
medical care of veterans are estimated
at $1.5 billion in 1969. This amount—
which covers medical services, administration, medical research, and construction of new medical facilities—is
$89 million higher than in 1968. Improved patient turnover and outpatient treatment, increased use of new
medical services, and better staffing—
all contribute to the improved quality
of medical care for more than 800,000
veterans treated in V A facilities.
Education and
training.—In
1969, $604 million will be spent to
assist 403 thousand veterans, and
15 thousand war orphans and children of totally disabled veterans actively engaged in veterans' education
and training programs. These figures
reflect recently enacted legislation
which increased payments to veterans,
extended training opportunities for
educationally disadvantaged veterans^
authorized commercial flight training,
and on-the-job training.

Housing programs.—The Veterans Administration assists eligible veterans to obtain homes by guaranteeing
privately financed mortgages and by
making direct loans in rural areas and
small communities where credit is not
generally available. In 1969, 14,000
direct loans will be made and 242,000
loans will be guaranteed. Net lending
of $305 million will be required to finance these activities.
Other benefits and services.—
Special life insurance coverage is the
other major benefit provided to veterans and servicemen. The Veterans
Administration operates five insurance programs for veterans of prior
wars.
In addition, the V A administers an
insurance program funded under the
Department of Defense providing
$10,000 coverage for men on active
duty. Under this program, insurance
is jointly underwritten by the Government and private companies. A proposal has been made to liberalize the
coverage available.
Veteran Benefits and Services
Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Percent of
Total
outlays total budget
(in millions) outlays
$7, 342
7,168
6,898
5,921
5,722
5,681
5,520
5,625
5,688

3.9%
4.1
4.4
4.4
4.8
4.8
5.0
5.3
5.8

GENERAL GOVERNMENT
1969 Outlays
Expenditures
N e t Lending

$2, 827 Million
$ — 37 Million

$2, 790 Million

EXPENDITURES

MILLIONS
! 1,104

Tax C o l l e c t i o n a n d C e n t r a l

Fiscal

Operations

HHHHHHHHHHHHHHH529
L a w E n f o r c e m e n t , Justice a n d Civil R i g h t s
P r o p e r t y a n d R e c o r d s 3M0a0n a g e m e n t
M
BHHHHHHB
Legislative a n d Judicial

Functions

HHHHHH2,8
C e n t r a l Personnel

HHHflHBH

Management

240

E x e c u t i v e D i r e c t i o n , Territories a n d

Other

Ftdtral

Funds

4 Trust Funds

N o t e : T h e a m o u n t s s h o w n a b o v e a r e n o t a d j u s t e d f o r $ 9 4 m i l l i o n of i n t e r f u n d a n d i n t r a g o v e r n m e n t a l t r a n s a c t i o n s a n d $ 1 1 7 m i l l i o n of p r o p r i e t a r y r e c e i p t s ; t h u s t h e y a d d t o m o r e t h a n t h e t o t a l b u d g e t o u t l a y s for t h e
function.

Expenditures for general government provide for Government-wide
service activities, for executive direction and financial management, for
programs of law enforcement and
criminal justice, and for the costs of the
Congress and the Federal court system.
Tax collection and central fiscal operations.—Approximately onethird of the expenditures for general
government is for central fiscal operations, of which the largest part is the
Internal Revenue Service. Centralized
filing of tax returns at automatic data
processing centers will be further expanded in 1969 to improve tax administration. Primarily because of the need
to process a growing number of taxpayer returns and maintain taxpayer
compliance levels, the budget provides

an additional $73 million for the Internal Revenue Service in 1969.
General property
and
records
management.—The General Services
Administration continues to reduce
costs and increase efficiency in procurement of goods and services and
in maintenance of equipment and
records.
Law enforcement and justice.—
Expenditures of the Department of
Justice will increase with the anticipated enactment of legislation authorizing substantial Federal assistance for
State and local law enforcement and
the administration of justice. Increases
are also provided for the FBI and other
direct Federal anti-crime programs.
Civil rights.—The
1969 budget
provides for enlarged efforts to secure

the civil rights of individuals and minority groups. Enactment of legislative proposals to further strengthen the
guarantee of equal protection under
the law to all citizens will be sought.
Central
personnel
management.—These expenditures consist
primarily of the administrative expenses of the Civil Service Commission and provide for Federal assistance
to improve State and local government personnel programs.

General Government

Fiscal year

1969 estimate
1968 estimate
1967
1966
1965
1964
1963
1962
1961

Total
Percent of
outlays total budget
(in millions) outlays
$2,790
2,578
2,454
2,321
2,247
2,071
1,788
1,645
1,505

1.5%
1.5
1.5
1.7
1.9
1.7
1.6
1.5
1.5

INTEREST
1969 Outlays

$14.4 Billion

Outlays for interest on the Federal
debt will increase substantially in
1968 and again in 1969. These increases reflect both a higher level of
the outstanding debt and higher interest rates. Of total interest outlays

$3.0 billion will be paid to the Federal trust funds and agencies which
have their reserves invested in U.S.
securities.
The table below shows the ownership of the debt as of June 30, 1967.

OWNERSHIP OF FEDERAL
Description

Individuals
Federal trust funds and agencies
Federal reserve banks
State and local governments
Commercial banks
Insurance companies and mutual savings banks
Other corporations
Foreign and international
Other
Total

DEBT
Amount in Percentage
billions
of total
$73.4
75.8
46.7
22.3
55.1
12.9
11.3
14.7
14.6
326.7

22.4%
23.2
14.3
6.8
16.9
3.9
3.5
4.5
4.5
100.0

PART 3

THE BUDGET PROCESS
The budget process serves as an important vehicle for determining and
meeting national goals. Resources are
allocated between the private and public sectors of the economy. Within
the public sector, the overall level of

Federal budget outlays needed to
achieve national goals is determined
through the interaction of the President, the executive agencies, and the
Congress.

THE FEDERAL BUDGET CYCLE
Although budgeting is a continuous
process, the "budget cycle" has four
identifiable phases: ( i ) Executive
formulation and submission, (2)
congressional authorization and appropriation, (3) budget execution and
control, and (4) audit.
Executive formulation and submission.—The President's submission
of his budget proposals to the Congress each January culminates many
months of planning and analysis
throughout the executive branch.
Formulation of the 1969 budget,
which covers the fiscal year beginning
July 1, 1968, and ending June 30,
1969, began in the spring of 1967.
About 10 months later, in January
1968, the budget was formally transmitted to Congress.
During this period of executive
formulation, there is a continuous exchange of information and policy decisions among the President, the Bureau of the Budget, and the various
Government agencies. Beginning in

the spring, each agency evaluates its
programs, identifies policy issues, and
makes budgetary projections, giving
attention both to important modifications and innovations in its programs
and to alternative long-range program
plans which are summarized in program memoranda submitted by each
agency. After review by the agency
and the Bureau of the Budget, these
studies, evaluations, and projections
form the basis for the budget policy
guidelines established by the President for the preparation of next year's
budget.
The guidelines are then given to the
agencies in the form of tentative policy determinations and approximate
planning figures for the revision of
their program memoranda and the
preparation of their budgets. Individual agency budgets are then formulated and reviewed in detail. At the
same time, the Department of the
Treasury, the Council of Economic
Advisers, and the Bureau of the
Budget jointly assess the economic out-

look and recommend to the President
overall budgetary and fiscal policy
measures. The budget submitted each
year reflects Presidential proposals for
individual programs as well as for the
overall outlays and tax levels appropriate to the needs of the economy.
Congressional authorization and
appropriation.—Congressional
review starts when the budget is sent
to Congress by the President. The
budget requests are considered first
in the House of Representatives. The
Ways and Means Committee reviews
all proposals for new revenue measures; the Appropriations Committee,
through its 13 subcommittees, studies
in detail the proposals for appropriations. Each committee then recommends the action to be taken
by the House of Representatives.
As parts of the budget are approved
by the House, they are forwarded
to the Senate, where a similar
process is followed. In case of disagreement between the two Houses of
Congress, a conference committee
(consisting of Members of both
bodies) meets to resolve the issues.
The conference report is returned to
both Houses for approval and then is
transmitted to the President in the
form of an appropriation or tax bill
for his approval or veto.
Government agencies are permitted to enter into obligations, requiring
either immediate or future payment of
money, only when they have been
granted authority to do so by law.
Every Federal program has a legislative authorization that establishes it or
says that it may be funded up to a certain amount. However, authority to

actually spend or lend is provided by
appropriations or other authorizations
which permit obligations to be incurred and outlays to be made. Appropriations may not exceed the
amounts authorized.
Not all funds appropriated by the
Congress in one year will be disbursed
in that year, however. Since the funds
authorized for some programs (such
as the building of highways, ships, or
other major construction items) will
be spent over a period of several years,
there is always a substantial carryover
of unspent authority from previous
years. Thus, the 1969 estimates reflect
expenditures and loans expected to be
made out of funds carried over from
previous years and out of new budget
authority requested in the 1969 budget.
More specifically, nearly $56 billion
of total outlays in 1969 will be made
from budget authority of earlier
years. Therefore, when the Congress
reduces or increases the amount of
budget authority requested by the
President for a given year, it does not
necessarily alter payments made in
that year by the same amount. Such a
change may have only a limited effect
on the current year's outlay, but it will
have a full effect on outlays over a
period of several years.
In summary, substantive legislation
establishes a program in a particular
Federal agency, Congress passes appropriations each year which permit
the agency to enter into contracts or
commitments to execute the program,
and budget outlays occur—in some
cases spread out over many future
years—to carry out those contracts and
commitments.

1969 B u d g e t -

Relation of A u t h o r i z a t i o n s fo Outlays
$ Billions

New Authority

J o be spent in 1 9 6 9

Outlays

Recommended

131.3

in 1 9 6 9

For 1 9 6 9

1.6

Unspent A u t h o r i z a t i o n s
Enacted in Prior
222.3

Years

| 8 6 J

Expiring Authority

Unspent A u t h o r i z a t i o n s
for O u t l a y s in

T o be held For O u t l a y s

•

in Later Y e a r s 1 6 5 . 9

Budget execution and control.—
Once approved, the budget becomes
the basis for the program of each
agency during the fiscal year. It is
the responsibility of the President and
agency officials to see that the laws
are faithfully executed, that appropriation limits are observed, that costs are
minimized, and that the Government
gets the greatest possible value for each
dollar it spends.
Audit.—This
is the final step in
the budget process. The individual

ruture Y e ars

236.4

agencies are responsible for assuring—
through their own audit and control
systems—that the obligations they
incur and the resulting expenditures
and loans are in accordance with the
provisions of the authorizing and
appropriating legislation. In addition,
the Congress receives reports of how
the agencies applied the appropriated
funds from the General Accounting
Office, which conducts after-the-fact
audits of executive agency operations.

ECONOMIC ASPECTS OF THE BUDGET PROCESS
In providing public services, the
Government must make the same kind
of decisions as those made by private
citizens and business firms. Whether
public or private, all economic decisions
depend on the answers to three basic
questions: First, what goods and serv-

ices should be supplied; second, how
much of these can be supplied; and
finally, are they being supplied efficiently. Businessmen and consumers
answer these questions in the market
process; the Government answers
them in the budget process.

Program

Determination

Each individual is involved in determining what and how much is to
be produced. Consumers show their
preferences in the marketplace by
their decisions to purchase certain
goods and not others. A businessman,
seeing that the short-run supply of a
favored product is inadequate, will expand production in that area in order
to earn higher profits. In this way,
a consumer's "dollar votes" determine
what goods and services appear in the
market and in what quantity they are
supplied.
As voting citizens, we play a more
indirect, but still effective, role in deciding what amount and type of goods
and services the Government provides. Both the President and the Congress are elected by the people and
both attempt to reflect the people's
desires and the national interest in
their official actions. By bringing their
different perspectives together in the
budget process, they produce a representative expression of individual
and national objectives.
The Government provides those
things that are vital to the national interest and which cannot or will not be
effectively provided by private business. Some obvious examples are national defense, highways, administration of justice, and public health. The
budget process helps to determine
which mixture of these activities will
likely contribute the most to the general welfare.
For instance, the Government faces
the problem of determining how
much of its resources should be devoted to a recreation program and
how much should be concentrated on
highways to provide an extensive net-

work of roads. Concentration on either
program to the exclusion of the other
would not provide the greatest benefit; for we want both beautiful camping grounds and wildlife preserves as
well as a good means of getting to
them. Logically, some combination of
recreational facilities and highways is
necessary.
While the conclusion is easily
drawn from this example, the problem of choosing between alternatives and finding the proper "mix" of
programs becomes quite complicated
when dealing with the full list of
goods and services provided by all
units of Government. The PlanningPrograming-Budgeting (PPB) system
of the Federal Government figures importantly in this allocation of Government resources and in the efficient use
of them.
Efficiency in Reaching
Goals

Program

The third basic economic question—
how to get the most product out of
any given amount of resources—must
also be answered in both the private
and public sectors of the economy.
Since a businessman knows generally
how much it costs him to provide his
product or service, he can compare
these costs with the market price. The
difference between his costs and his
income is profit which, in the long
run, is a measure of how well he is
managing his business. The Government, on the other hand, has no such
clear-cut test of how well it is achieving its goals. In an attempt to provide appropriate tests of Government
programs, the Planning-ProgramingBudgeting system is being developed.
PPB is designed ( i ) to analyze the

objectives of various Federal agencies;
(2) to develop alternative means of
reaching those objectives; and (3) to
identify the most effective alternatives
in terms of benefits and costs. The system requires that each agency develop
and annually refine specific working
plans which are based on an analysis of
its programs. It is often difficult or improper to measure the benefits of the
programs completely in dollar terms.
For example, the social benefit of
training a high school dropout cannot
be completely expressed in dollars.
Nevertheless, cost-effectiveness analysis can be used to compare alternative
ways to train dropouts and to indicate
which will do the job for the least cost.
PPB displays for high-level decisionmakers a specific statement of objective (e.g., the number of people to be
trained in the next five years through
the Manpower Development Training
Act); alternative plans to accomplish

the chosen objective (e.g., on-the-job
training versus training in vocational
schools); a comparison of the plans;
an analysis of the full costs and probable effectiveness of the alternatives. In
this way, the system provides both a
basis for choices among competing program proposals and a standard for the
later measurement of actual accomplishments.
PPB is not new in concept. It seeks
hard and specific analyses of Federal
programs on a more comprehensive
and intensive basis than ever before.
Its requirements for better data and
more sophisticated techniques of
analysis mean that its full effects will
not be felt for several years. However,
even at this early stage, several agencies have designed more effective
methods of operation and have
achieved significant reduction in costs
while maintaining or improving the
quality of their operations.

T H E BUDGET IN PERSPECTIVE
The Federal budget significantly influences the total economic activity
of the country, and it changes in relation to the needs of the people it
serves.
Growing

Public

Responsibilities

As our society becomes more complex, its needs increase in scope and
in depth. Not only do we demand
more education but better education;
not only do we want more cars and
faster transportation, but unclogged
roads and safer airways and airports.
When we buy a car, we not only expect it to transport us effectively and be
reasonably attractive, but also expect
that it will be safe—and we hope that

its exhaust will not pollute the air so
that breathing becomes uncomfortable
or unsafe. We did not foresee all these
complications of automobile travel 40
years ago. But as the Nation grows,
so do its problems and the desires
of its people.
When we become aware of the complexities created by the sheer size of
the population (insufficient supply of
doctors, overcrowded schools, pollution of air and water, and the like),
we demand that the Government take
action to help alleviate these strains.
Since 1958, the U.S. population has
increased from 174 million to over
200 million persons. Thus, we must
now provide services for a population

roughly equal to the combined populations of Canada, West Germany,
France, and the United Kingdom.
Changes in the age distribution and
location of our people also have increased public service demands over
and above what this total growth alone
would require. First, population has
increased markedly in age groups
under 18 or over 65 which have greater
need for such public services as education or social security. These groups
have increased by 20% over the past
10 years and now constitute 45% of
our population. Second, the number of
people of all ages living in urban areas
has increased in this same decade more
than 25%, and now makes up about
70% of the population.
In addition to these quantitative
changes, our population has changed
qualitatively as well. In the last decade,
the real income of the average American family has risen 3 1 % . The gain—
measured in current dollars—amounts
to $3,675 for an average family of
four.
Although our standard of living has
increased, nearly 29 million Americans
are still below the "poverty line"
($3,335 for a nonfarm family of four).
An important objective of public policy in recent years has been to provide
the education, training, and other
measures necessary to help these individuals become a productive part of
society.
Growing

Public

Programs

T o help meet this demand for more
and better public services a number
of Federal programs have been ini-

tiated or expanded. These include elementary, secondary, and higher education aid programs, environmental
health and transportation programs,
the National Teacher Corps, the
Office of Economic Opportunity,
Medicare, and Medicaid. As a result
of these activities:
• The number of grants and loans
aiding college students will exceed
2 million, compared to 800 thousand
3 years ago.
• Enrollees in vocational education
programs will have increased 140%
since 1958 and will total 8.6 million
in 1969.
• Since 1964, 2,485 waste treatment
plants have been built with Federal
aid and research grants and contracts to develop better water pollution control methods have increased 598% to about $51 million.
• Almost three-fifths of the 41,000mile Interstate Highway System
has been completed.
• Fellowships, scholarships, and loans
will assist 60 thousand medical and
nursing students.
• 24 million people are receiving
monthly social security checks,
amounting to total annual benefits
of $23 billion.
• Medicare will cover over 75% of the
hospital and medical costs incurred
by 19 million aged.
• Over 920 thousand homes will have
been provided for families with low
and moderate incomes by the end
of 1969.
• In 1969, 1,632 urban renewal projects will be in process and 509 will
have been completed.

Selected Prosram Trends

Thousands

125
L o w a n d M o d e r a t e Income H o u s i n g

Budget outlays and
GNP.—Despite the increase in Federal activity,
the size of the Federal Government in

relation to the size of the total economy has remained fairly stable as is
shown in the following chart:

Percent

30—

Budget O u t l a y s
as a Percent of G r o s s N a t i o n a l Product

1958

(959

I960

1961

1962

1963

Fiscal Years

(965

1966

1967

1968

1969

Estimate

In fiscal 1969, Federal outlays excluding Vietnam will amount to about
1 8 % of GNP—below the 19% of the
late 1950's and 19.4% in fiscal 1964.
Even if Vietnam expenditures are included, total Federal budget oudays
in fiscal 1969 will amount to about
2 1 % of G N P .
Strengthening

1964

the Federal

System

The Federal Government is providing a steadily rising stream of financial assistance to hard-pressed
States and localities to ensure that important national needs for which they
are primarily responsible continue to

be met. Federal aid, which was less
than $7 billion in 1959, is estimated at
more than $20 billion in 1969—more
than a threefold increase. Aids to State
and local governments account for
roughly one-fifth of all Federal spending for domestic purposes. Federal aids
are also important in the budgets of the
recipients, making up nearly 1 7 % of
State and local revenues.
While highways and public assistance will account for nearly half of
total Federal aid in 1969, the fastest
growing programs recently have been
education, training, and other investments in human resources—all designed to extend the range of man's
opportunity and progress.

Federal A i d to State and Local Governments
Federal

Fund and

1958

Trust Fund

1959

I960

Expenditures

1961

1962

1963

Fiscal Years

and the Federal

Debt

Federal expenditures and net lending not financed by taxes and other
revenues are met by borrowing. Al-

1965

1966

1967

1968

1969

Estimate

Continuing efforts are being made
to improve the overall effectiveness
of our federal system of government.
Among these are recent attempts to:
• Increase training by providing assistance for education for the public
service, and facilitating, the interchange of personnel among units of
government; and
• Streamline grants by speeding up the
time required to process applications,
pooling related grants for unified
projects, and actually consolidating
several grants where possible.
As these improvements are implemented, the combined effectiveness of
all levels of government in meeting
national goals should be enhanced.
Borrowing

1964

most two-thirds cf the present Federal debt was incurred in the 8-year
period from 1939 to 1947 in order to
help finance World War II costs and
postwar recovery.
The gross public debt—which includes both direct Treasury borrowing
and the borrowing of Federal agencies through the issuance of their own
securities—is expected to rise from
$370 billion at the end of fiscal 1968
to $387 billion on June 30, 1969.
Almost a quarter of this gross debt is
held by Federal trust funds. For example, by the end of 1968, the Federal
Old-Age and Survivors Trust Fund
will have invested almost $24 billion
of its reserves in Federal securities.
The remaining Federal debt is owed
to the public. This is estimated to be
$290 billion on June 30, 1968, and
about $298 billion on June 30,
1969. This total, while rising in ab-

solute terms, has been steadily declining in relation to the size of
the economy. Debt held by the public

was 5 1 % of G N P in 1958, while it is
estimated to be less than 36% in 1968.

Percent

125 -

1942

Federal Debt Held by The Public
as a Percent of Gross National Product

1945

Fiscal Years

Moreover, net Federal debt has
grown more slowly than other kinds

1965

1969
Estimate

of debt and is less than 18% of total
debt.

N e t Public a n d Private D e b t
$ Billions

1800 —

Private

Estimate

PART 4

THE NEW BUDGET CONCEPT
On March 3, 1967, the President
asked 16 distinguished citizens from
private industry, universities, and government (including bipartisan representation from congressional appropriations committees) to make a
thorough study of the Federal budget
and the manner in which it is presented to the Congress and the public.
On October 10, the President's Commission on Budget Concepts presented
its recommendations on what it believed to be a "truly modern and progressive budget presentation" for the
Federal Government. All of the basic
changes recommended which could
be undertaken in time have been incorporated into the fiscal 1969 budget.
A few other recommendations of the
Commission will require additional
work and planning before they can
be applied.
A unified budget.—The Commission's most significant recommendation was that a unified budget concept
be adopted. In the past, three sets of
budget totals have been highlighted:
the administrative budget, the consolidated cash budget, and the national
income accounts budget. While each
served a particular purpose, three different sets of figures were confusing
to the public and the Congress. They
are therefore being replaced by a single concept for summarizing the
budget.

The coverage of the budget,—
In line with the Commission's recommendation, the budget includes all
programs of the Federal Government
and its agencies. Therefore, trust
funds—which had been omitted from
the administrative budget—and general Federal funds are both included
in the presentation of Government
programs. Activities included in the
cash budget, which were initially
sponsored by the Government but now
privately owned, are excluded.
Separation of spending and
lending.—Within the budget there
are two accounts, the expenditure account and the loan account. The Commission proposed this distinction in
order to provide a better understanding of the direct effect of the budget
on private incomes and employment.
The surplus or deficit of the expenditure account, which excludes
loans, provides such a fiscal policy
yardstick. Net lending (i.e., the difference between loan disbursements
and repayments) is added to the expenditure account surplus or deficit to
arrive at the toted budget surplus or
deficit.
Like Government expenditures,
loans result in someone's acquiring
cash and presumably spending the
borrowed funds. However, the lender
acquires a financial asset and the
borrower assumes an obligation for

subsequent repayment of principal and
interest. For this reason, gross loan disbursements and repayments in the
loan account are presented separately
within the budget totals.
Under earlier concepts, Government
sales of participation certificates in
loans which it continued to own were
treated as sales of financial assets and
deducted from expenditures. Such
sales are now treated like Federal borrowing activities.

current size of the budget, it is appropriations that are a prerequisite to
spending and lending, and that show
the choices being made between
alternative programs.
Therefore, the summary budget
presentation now shows the total
amount of appropriations requiring
current action by the Congress, as well
as the total amount which will become
available without further congressional
action.

Netting
of proprietary
receipts.—Receipts
from
activities
which are essentially governmental in
the sense that they represent an exercise of sovereign power—like taxes,
regulatory fees, and fines—continue to
be reported as receipts in the budget.
But receipts associated with activities
which are business-type or marketoriented are now included as offsets
to the expenditures of the agency and
function to which they relate. For
example, sales of timber from the national forests are netted against the
expenditures for natural resources.

Other major characteristics.—
The budget does not yet reflect two
major recommendations of the Commission. These are accrual accounting
and segregation of loan subsidies.
The Commission recommended that
budget oudays and receipts he reported on an accrual basis instead of
the present cash basis. This means that
receipts and outlays would be recorded at the time a receipt is earned
or a liability is incurred rather than
when payment is made or received.
In addition, the Commission recommended that the subsidy element in
Federal loan programs be calculated
and revealed explicitly. This subsidy
represents the current value of the
difference between the market rate of
interest and the lower Government
rate. Since a subsidy is that part of a
loan that does not have to be repaid,
it is properly recorded as an expenditure.
These two recommendations will require extensive preparation in portions
of the Government's accounting systems. Therefore, it will be at least 2
years before these changes can be reflected in the budget.

Emphasis on requested congressional action.—The budget this year
gives more emphasis to the authorizations and appropriations being requested of the Congress. This is to
provide better integration of ouday
and appropriation information. In the
past, the details of the budget, and
especially the budget Appendix, had
focused primarily on appropriations,
obligations, and program costs, while
the President's budget message and
the Budget in Brief had focused on
expenditures. Although expenditures
and net lending best indicate the

HISTORICAL TABLES
In the previous sections of this booklet, an effort
was made to limit the use of statistics. However, for
a complete understanding of the budget it is important to know the amounts being spent for the various
Government programs, and how they relate to other
measures of economic activity. The following tables
also show how these current amounts compare with
the past levels of Government spending.

The following additional budget documents are available from the Superintendent
of Documents, U.S. Government Printing Office, Washington, D.C. 20402:
1. The Budget of the United States Government, 1969. Contains most of the facts,
figures, and analyses that general users of the budget would normally desire or need.
Price: $1.75.
2. The Budget of the United States Government, 1969.—Appendix.
Contains the
text of appropriation language, schedules, and narrative statements for individual
appropriations and funds. Price: $6.00.
3. Special Analyses, Budget of the United States, 1969. Contains special tabulations
and analyses of budgetary data for those interested in selected aspects of the total
Federal program. Price: 70 cents.

BUDGET OUTLAYS BY FUNCTION
[In m i l l i o n s of dollars]
N e t lending

Expenditures
Description

1967
actual

D e p a r t m e n t of D e f e n s e — M i l i t a r y :
Military personnel
Operation and maintenance
Procurement
Research, development, test, and evaluation
M i l i t a r y construction and other
Subtotal, military
Military assistance
Atomic energy
Defense-related activities
Adjustments1
T o t a l , national defense
International affairs and finance:
Conduct of foreign affairs
Economic and financial p r o g r a m s :
Development loans
Supporting assistance
Alliance for Progress
Technical cooperation
Other
Foreign information and exchange a c t i v i t i e s .
Food for Freedom
Adjustments 1
T o t a l , international affairs and

finance..

Space research and technology:
M a n n e d space flight
Space science and applications
Space technology
Aircraft technology
Supporting activities
Adjustments 1
T o t a l , space research and t e c h n o l o g y . .
Agriculture and agricultural resources:
F a r m income stabilization
Financing farming and rural housing
Financing rural electrification and rural telephones
Agricultural land and water rsources
Research and other agricultural services
Adjustments 1
T o t a l , agriculture and agricultural reNatural resources:
L a n d and water resources
Forest resources
Mineral resources
Fish and wildlife resources
Recreational resources
General resource surveys and administration.
Adjustments 1
T o t a l , natural resources.
Commerce and transportation:
Air transportation
Water transportation
Ground transportation
Postal service
Advancement of business
Area and regional development .
Regulation of business
Adjustments 1
T o t a l , commerce and transportation

estimate

1969
estimate

1967
actual

1969
1968
estimate estimate

'National defense:
19,787
19,000
19,012

21,800
19,800
21,470

22,793
22,260
23,445

7,160
2,650

7,200
3,590

7,800
508

67,608
1,943
2,264
-14
-1,706

73,860
1,675
2,334
115
-1,491

76,806
1,853
2,546
242
-1,654

70,095

76,491

79,792

366

559

438

662
587
511
224
533
245
1,452
-469

625
602
465
203
522
256
1,315
-217

670
621
516
216
541
255
1,444
-224

4,110

4,330

4,478

3,649
796
440
89
452

3,166
698
420
113
411
-4

2,993
644
425
120
394
-3

5,423

4, 803

4,573

2, 267
-10

3, 428
26

12
353
570
-37

-1
-3

-3

- 2

-4

2 540

2 716

2 675

540

716

675

3, 459
32

262
728

-29
649

24
751

13
362
623
-39

13
350
662
-42

232

279

360

3,156

4,412

4,474

1,221

2,335
482
122
136
194
275
-1,432

2,465
518
133
153
245
250
-1,348

2,536
493
131
158
309
239
-1,382

2,113

2,416

2,483

945
792
4,050
1,141
189
137
101
-48

950
855
4,385
1,087
160
312
100
-156

1, 282
1,000
4,420
767
153
425
107
-157

7, 308

7,695

7,996

- 2

1, 135
15

-7

-9

- 8

101
29
17

114
_53
*

67
65

138

158

125

BUDGET OUTLAYS BY FUNCTION—Continued
[In millions of dollars]
Net lending

Expenditures
Description

1967

actual
Housing and community developmentAids to p r i v a t e housing
P u b l i c housing p r o g r a m s
U r b a n renewal and c o m m u n i t y facilitiesN a t i o n a l C a p i c a l region
Adjustments

T o t a l , housing and c o m m u n i t y development

Health, labor, and welfare:
M e d i c a r e and medical assistance

P u b l i c welfare (excluding medical a s s i s t a n c e ) .
E c o n o m i c o p p o r t u n i t y programs
School lunch, special milk, and f o o d s t a m p
Other
T o t a l , health, labor a n d welfare

Education:

E l e m e n t a r y and secondary education
Higher education

T o t a l , education

Veterans benefits and services:

Veterans service-connected compensation
Veterans non-service-connected pensions
Other veterans benefits and services

T o t a l , veterans benefits and services

General government:
C e n t r a l fiscal operations
General p r o p e r t y and records m a n a g e m e n t
Other general government
T o t a l , general government

Interest

. . .

1968

T o t a l , expenditures and net lending

1968

1967

actual

1969

estimate estimate

1,561
14
114
19

3,177
22
42
16

1,245
-16
61
65

-15

-457
350
1,432
104
14
-14

577

697

1,429

1,708

3,257

1,355

27,117
4,762
2,010
3,041
1,485
1,069

29,946
7,061
2,393
3,484
1,853
1,326

33,706
8,183
2,497
3,605
1,997
1,492

530

418
365
-755

500
479
-646

586
593
-714

39,512

46,396

1, 859
711
415
628
-11

-225
251
504
66

-539
297
865
90

-19

-530

-15

3
24

4
17

4
3

51,945

572

-538

1, 930
1,057
456
730
-15

1, 931
1,065
480
905
-16

-2
447

383

1
334

3,602

4,157

4,364

445

384

335

2,310
1, 893
1, 391
280
999

2,435
2,063
1,458
502
843

532

370

211

-508

-502

2,461
2,101
1, 546
604
931
-18
-494

6,366

6,798

7,131

532

370

211

254
25
968
620
191
426
213
-246

280
31
1,007
629
212
462
203
-207

300
35
1,104
648
218
529
205
-211

2,452

2,618

2, 827

12, 548

13, 535

14,400

100

1,600
350

-1,735
-2,287

-1,913
-2,678

-2,007
-3,042

153,238

169,856

182,797

Allowances f o r :
U n d i s t r i b u t e d intragovernmental p a y m e n t s :
G o v e r n m e n t contributions for employee re-

1969

estimate estimate

_ *

-3

-46

-41

-40

-37

5,176

5,779

3,265

* L e s s t h a n $500 thousand.
1 A d j u s t m e n t s are f o r interfund and i n t r a g o v e r n m e n t a l t r a n s a c t i o n s a n d p r o p r i e t a r y receipts.
2 Export-Import Bank.

B U D G E T RECEIPTS BY SOURCE, 1962-69
[In millions of dollars]
Actual

Description

Estimate

1962

1963

1964

1965

1966

1967

1968

45,571
20, 523
12,835
3, 337

47, 588
21,579
14, 746
4,112

48, 697
23, 492
16, 959
4,045

48, 792
25,461
17,358
3,819

55,446
30,073
20, 662
3, 777

61, 526
33, 971
27, 823
3,652

67, 700
31, 300
29, 730
3,660

80,900
34, 300
34,154
3,594

873
12, 534
2,016
1, 142
825

944
13, 194
2,167
1,206
1,042

1,006
13,731
2, 394
1, 252
1,126

1,079
14, 570
2,716
1,442
1,617

1, 126
13,061
3,066
1,767
1,923

1,853
13,719
2,978
1,901
2, 168

2, 049
13,848
3,100
2,000
2,443

2,275
14,671
3,400
2, 070
2,744

99, 656

106, 578

112, 702

116, 855

130,901

149, 591

155, 830

178, 108

Interfund and intragovernmental
transactions
_
| 5, 654
Proprietary receipts from the
public
..
..

7,099

6, 655

6, 761

7,592

Individual income taxes
Corporation income taxes
Employment taxes.
. ..
Unemployment insurance
Premiums for other insurance
and retirement
_
Excise taxes
_
_
E s t a t e and gift taxes
_ .
Customs
Other receipts __
Total, budget receipts

1969

MEMORANDUM
(Excluded above, offset against
expenditures)

j 6, 588

7, 415

8, 241

[ 4, 948

4, 430

4,617

BUDGET OUTLAYS BY FUNCTION, 1962-69
[In millions of dollars]

Expenditures:

National defense
International affairs and finance
Space research and t e c h n o l o g y .
Agriculture and agricultural
resources
..
Natural r e s o u r c e s . .
Commerce and t r a n s p o r t a t i o n .
Housing and community development
Health, labor, and welfare
Education
.
Veterans benefits and s e r v i c e s .
Interest
General g o v e r n m e n t .
Undistributed a d j u s t m e n t s t o
amounts a b o v e . - . .
T o t a l , expenditures

Net lending:

Estimate

Actual

Description

1969

1962

1963

1964

1965

1966

1967

1968

51,179

52,275

53,682

49,586

56,771

70,095

76,491

79,792

4,034
1,257

4,279
2,552

4,434
4,171

4,196
5,091

4,343
5,932

4,110
5,423

4,330
4,803

4,478
4,573

3,491
1,736
5,193

4,398
1,607
5,516

4,545
2,042
6,283

4,032
2,140
7,043

2,764
2,167
6,789

3,156
2,113
7,308

4,412
2,416
7,695

4,474
2,483
7,996

160
23,963
842
5,378
8,321
1,653

193
25,677
953
5,666
9,215
1,799

151
27,201
1,109
5,552
9,810
2,072

116
28,143
1,309
5,634
10,358
2,231

442
33,194
2,449
5,707
11,285
2,316

577
39,512
3,602
6,366
12,548
2,452

697
46,396
4,157
6,798
13,535
2,618
100

1,429
51,945
4,364
7,131
14,400
2,827
1,950

-2,547

-2,666

-2,931

-3,164

-3,421

-4,022

-4,591

-5,049

104,660

111,465

118,122

116,715

130,740

153,238

169,856

182,797

•

-64

-31

-3

-1

-3

-2

-4

528

-95

-283

-21

100

540

716

675

648
21
193

731
18
145

642
23
139

777
16
275

911
19
193

1,221
19
138

899
16
158

1,135
7
125

490
1
231
248
-8

-1,012
1
288
-146
-11

-301
2
225
129
-1

-147
19
229
88
16

1,984
32
376
214
5

1,708
572
445
532
2

3,257
21
384
370
-40

1,355
-538
335
211
-37

2,351

-145

545

1,249

3,832

5,176

5,779

3,265

T o t a l , outlays (expenditures
107,011
and net lending)

111,320

118,667

117,966

134,572

158,414

175,635

186,062

National defense
International affairs and finance..
Agriculture and agricultural
resources
N a t u r a l resources
_
Commerce and t r a n s p o r t a t i o n .
Housing and c o m m u n i t y development
Health, labor, and welfare
Education
Veterans benefits and s e r v i c e s .
General government
T o t a l , net lending

*Le»s than $500 thousand.

BUDGET AUTHORITY AND OUTLAYS BY AGENCY
[In millions of dollars]
Outlays

Budget authority
Description
1968
estimate

1969
estimate

261

272

91
29

295
103

1967
actual
Legislative Branch
The Judiciary
Executive Office of the President.

1967
actual

1968
estimate

1969
estimate

240

274

285
102

95
32

Funds appropriated to the Pres5,428
7,928

4,830

5,076

7,800

6,143
7,530

4,872

Department of Agriculture

5,828

Department of Commerce

1,041

961

1,027

738

6,705
782

72, 287

72,755

79,116

1,358

1,307

67, 466
1,310

73,695
1,378

76,657

1,357
41,640

45,673

51,370

35,153

40, 859

45,769

5,703
863
462

5, 342
857
542

2,793
529

4, 551

3, 216
923

Department of Justice

7, 368
656
406

Department of Labor

4,692

4, 772

Post Office Department

1,215
402

1,174
399
6,696

4, 836
920
428

3,361
1,141
419

1, 087
428

6,525

5, 753
14, 461

ident

5, 424
7,167
853

Department of Defense—Military
Department of Defense—Civil. .

1,343

Department of Health, Education, and Welfare
Department of Housing

and

Urban Development
Department of the Interior

Department of State
Department of Transportation. .
Treasury Department
Atomic Energy Commission . . .
General Services Administration.

6,262
13, 083
2,199
113

409

779
444
3,876

555
3, 800
767
439
6, 282

14,456

15, 410

5, 428
13, 098

2,509
316

2,755
330

2,264
131

2,333

15,425
2,546

389

493

National Aeronautics and Space
Administration

4,966
6,929

4, 587
7,828

4,369
7,790

5,423
6, 846

4,803
7,139

4,573

Veterans Administration
Other independent agencies....
Allowances for:

8,231

7, 397

7, 595

4,870

5,185

5,127

150

1, 600
550

Civilian and military pay increase
Contingencies
Undistributed adjustments
amounts above:

7, 382

1,600
100

350

Government contributions, as
employer, for retirement. ..
Interest received by trust funds.
Total, budget authority
and outlays

-1,735
- 2 , 287

-1,193
-2,678

-2,007

-1,735
- 2 , 287

-1,913
-2,678

-2,007

- 3 , 042

182, 562

186,499

201,723

158,414

175,635

186, 062

-3,042

B U D G E T R E C E I P T S , OUTLAYS, FINANCING, AND DEBT, 1962-69
[In m i l l i o n s of dollars]
Actual

Description
1962

1963

1964

1965

Estimate
1966

1967

1968

1969

Expenditures and net lending:
Expenditure account:
Receipts
Expenditures (excludes net
lending)

99,656

106,578

112,702

116,855

130,901

149,591

155,830

178,108

104,660

111,465

118,122

116,718

130,740

153,238

169,856

182,797

Expenditure surplus or
deficit ( —)

-3,647 -14,026

-4,689

-5,004

-4,887

-5,420

137

161

Loan account:
Loan disbursements.
Loan repayments

9,621
7,271

9,646
9,791

10,237
9,693

10,911
9,662

14,628
10,796

17, 787
12,611

20, 869
15,091

20, 372
17,106

Net lending.

2,351

-145

545

1,249

3,832

5,176

5,778

3,266

Total budget:
Receipts
Expenditures and net lending

99,656

106,578

112,702

116,855

130,901

149,591

155,830

178,108

107,011

111,320

118,667

117,966

134,572

158,414

175,635

186,062

B u d g e t surplus or deficit ( - )

-7,355

-4,742

-5,965

-1,111

-3,671

-8,823 -19,805

-7,954

9,453
-2,098

5,971
-1,229

2,978
2,987

3,953
-2,842

6,031
2, 360

3,551
5,272

20,840
-1,035

8,000
-46

7,355

4,742

5,965

1,111

3,671

8,823

19,805

7,954

301,074
246,676

308,488
252,647

3 1 4 , 3 7 7 320,806
255,625 259,578

329,473
265,609

341,343
269,160

369, 993
290,000

387, 167
298,000

Budget
financing:1
Borrowing from the public
Reduction of cash balances, e t c .
T o t a l , budget financing
Outstanding debt, end of year:
Gross amount outstanding
Held by the public
1

D a t a represent results of preliminary adjustment to new budget concepts and m a y be revised later.

OUTLAYS AND RECEIPTS OF T R U S T FUNDS (in millions of dollars)
Receipts

Outlays
Description

F e d e r a l o l d - a g e and s u r v i v o r s insurance trust fund
F e d e r a l d i s a b i l i t y insurance trust f u n d .
H e a l t h i n s u r a n c e trust f u n d s
U n e m p l o y m e n t trust f u n d
Railroad retirement accounts
Federal employees retirement f u n d s . . .
Highway trust fund
A d v a n c e s , f o r e i g n m i l i t a r y sales
Veterans life i n s u r a n c e f u n d s
O t h e r trust f u n d s ( n o n r e v o l v i n g )

Subtotal
Interfund transactions
Total

1967
actual

1968
estimate

1969
estimate

1967
estimate

19, 8 4 2
2,071
3, 4 1 1
2, 8 6 8
1,429
2, 0 9 1
3, 9 7 3
1,070
970
407
1,143

21, 6 5 0
2, 2 6 8
5,064
3,163
1, 4 1 5
2,133
4,219
1,125
638
602
2, 3 1 0

24, 5 6 7
2,617
5, 7 7 0
3, 0 8 8
1, 3 7 6
2, 2 6 2
4,203
1, 3 3 0
559
426
990

23, 371
2, 3 3 2
4, 3 7 3
4,072
1, 6 1 1

39, 2 7 5
-686

44, 587
-641

38, 5 8 9

43, 946

1969
1968
estimate estimate

24, 0 0 5
2, 8 3 8

3,105
4, 4 5 5
1,078
736
227

5, 7 5 1
4,119
1,629
3, 4 5 2
4, 3 7 9
1,150
752
380

27,188
3, 6 5 5
6,827
4,095
1,791
3, 6 3 8
4,805
1,400
744
416

47,189
-720

45, 411
-686

48, 455
-641

54, 5 5 9
-720

46, 4 6 9

44, 7 2 5

47, 814

53, 8 3 9

FEDERAL FINANCES AND T H E G R O S S NATIONAL PRODUCT, 1958-68
[Dollars in billions]

Fiscal year

Gross
national
product

Total outlays

Expenditures
(excluding
loans)

Federal debt at end of year 1
Gross

Held by public

Amount Percent Amount Percent Amount Percent Amount Percent
ofGNP
of GNP
of GNP
of GNP
1958
1959
1960
1961
1962

$440.3
469.1
495.2
506.5
542.1
573.4
612.2
653.5
718.7
763.1
817.0

1963
1964
1965
1966
1967
1968 (estimate)
1

$82.7
92.4
92.3
97.9
107.0
111.3
118.7
118.0
134.6
158.4
175.6

18.8
19.7
18.6
19.3
19.7
19.4
19.4
18.1
18.7
20.8
21.5

$81.2
89.7
90.4
96.7
104.7
111.5
118.1
116.7
130.7
153.2
169.9

18.4 $279.1
19.1 286.7
289.3
18.3
19.1 291.0
19.3 301.1
19.4 308.5
314.4
19.3
17.9 320.8
18.2 329.5
20.1 341.3
20.8
370.0

63.4 $226.0
61.1 234.3
58.4 236.1
57.5 237.2
55.5 246.7
53.8 252.6
51.3 255.6
49.1 259.6
45-8 265.6
44.7 269.2
290.0
45.3

51.3
49.9
47.7
46.8
45.5
44.1
41.8
39.7
37.0
35-3
35.5

D a t a represent results of preliminary a d j u s t m e n t to new b u d g e t concepts and m a y be revised later.

FEDERAL DEBT AT END OF YEAR
[In millions of dollars]
Public
debt, old
concept
(Treasury issuances)

Fiscal year

Public
debt, old
concept
(Treasury issuances)

• Fiscal year

Federal debt, new
Public concept (Treasury
debt, old
and agency1
concept
issuances)
(Treasury issuances)
Gross

63
1,437
1, 263
1,222
1,178

1922
1923
1924
192S
1926

22,963
22, 350
21,251
20, 516
19,643

1946
194 7
194 8
1949
195 0

269,898
258, 376
252, 366
252,798
257, 377

256, 853

1,159
1,136
1,132
1,143
1.147

1927
1928
1929
1930
1931

18,512
17,604
16,931
16,185
16,801

195 1
195 2
195 3
195 4
195 5

255, 251
259, 151
266,123
271, 341
274,418

255,288
258, 834
265, 712
270, 808
274, 339

1, 178
1.148
1,147
1,154
1,194

1932
1933
1934
1935
1936

19,487
22,539
27, 734
32,824
38,497

195 6
195 7
1958
195 9
1960

272, 825
270,634
276,444
284, 817
286,471

272, 721
272, 289
279, 147

1,193

1,191
1,225
2,976

1937
1938
1939
1940
1941

41,089
42,018
45,890
48,497
55, 332

196 1
196 2
196 3
1964
1965.

289,211
298,645
306,466
312, 526
317, 864

290,991
301,074
308,488
314, 377
320, 806

12,455
25,485
24, 299
23,977

1942
1943
1944
1945

76,991
140,796
202,626
259,115

1966
...
196 7
1968 e s t i m a t e
1969 e s t i m a t e

320, 369
326,733
351,599
363,540

329,473
341,343
369,993
387,167

1,188

286,666
289,243

' D a t a represent results of preliminary a d j u s t m e n t t o new b u d g e t concepts and m a y be revised later.

HISTORICAL

C O M P A R I S O N OF F O U R C O N C E P T S
TOTALS, 1961-69

BUDGET

[Fiscal years. In billions of dollars]
Actual

Description

Administrative budget:
Receipts
Expenditures

Surplus or deficit ( — ) .

Receipts from and payments to
the public (consolidated
cash budget):
Receipts
Payments

Surplus or deficit (—)_

Federal sector of national income
accounts QNIA budget):
Receipts
Expenditures

Surplus or deficit (—)_

Estimate

1961

1962

1963

1964

1965

1966

1967

1968

1969

77.7
81.5

81.4
87.8

86.4
92.6

89.5
97.7

93. 1
96.5

104.7
107.0

115.8
125.7

118.6
137.2

135,6
147.4

-3.9

-6.4

-6.3

-8.2

-3.4

-2.3

-9.9

-18.6

-11.8

97.2
99.5

101.9
107.7

109.7
113.8

115.5
120.3

119.7
122.4

134.5
137.8

153.6
155.1

158.8
176.0

181.2
188.7

-2. 3

-5.1

-4.0

-4.!

-2.7

-3.3

-1.5

-17.2

-7.6

95.3
98.0

104.2
106.4

110.2
111.4

115.5
116.9

120.6
118. 3

132.9
131.9

147.6
155.1

161.1
171.1

182.5
185.0

-2.7

-2.1

-1.2

-1.4

2. 3

-7.5

-10.0

-2.5

94.4
96.7

99.7
104.7

106.6
111.5

112.7
118. 1

116.9
116.7

130.9
130.7

149.4
153.2

155.8
169.9

178. 1

-2. 3

-5.0

-4.9

-5.4

-3.6

-14.0

-4.7

1.2

2.4

94.4
97.9

99.7
107.0

106.6
111.3

-3.5

-7.4

-4.7

The new budget:

Expenditure account:
Receipts
Expenditures
Expenditure account
plus or deficit (—)

sur-

N e t lending
Total b u d g e t :
Receipts
Expenditures and net lending.
Surplus or deficit ( —)

.1
1.2

3.8

5.2

112.7
118.7

116.9

118.0

130.9
134.6

149.6
158.4

-6.0

-1.1

-3.7

3.3
155.8
175.6

178.1
186.1

-19.8

-8.0

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182.8

B R A N C H

THE

G O V E R N M E N T

JANUARY 1 , 1 9 6 8
EXECUTIVE OFFICE OF THE PRESIDENT • WJMAU OF THE BUDGET

O R G A N I Z A T I O N CHART OF THE
EXECUTIVE BRANCH
This foldout chart presents a graphic view of
the major components of the Executive Branch
of the Government. Included are the staff
offices that make up the Executive Office of the
President, the 12 executive departments, and
various agencies, boards, and commissions.
Temporary commissions, and interagency and
public advisory committees are not included.

For further details on the organization and functions of Federal agencies, sec the U.S.
Government Organization Manual (for sale by the Superintendent of Documents,
Government Printing Office, Washington, D.C. 20402).

Full text of Budget in Brief : Fiscal Year 1969

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