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FISCAL YEAR 1970

EXECUTIVE OFFICE OF THE PRESIDENT/BUREAU OFTHE BUDGET

Corporation
Income Taxes
Individual Income
Taxes

19¢

46¢

23¢

Social Insurance
Trust Funds

22¢

(l3¢)

-- --

- National Defense

41¢

FROM THE PRESIDENT'S BUDGET MESSAGE
The record of achievements of the past 5 years is
an impressive one. We have witnessed a period of
unprecedented economic growth, with expanded
production, rising standards of living, and the lowest rates of unemployment in a decade and a half.
Our military forces today are the strongest in the
world, capable of protecting the Nation against any
foreseeable challenge or threat. Last month saw
man's first successful flight to the moon. In domestic
matters, the legislative and executive branches, cooperatively, have forged new tools to open wider
the doors of opportunity for a better life for all
.L~mericans.

In my first budget message 5 years ago, I stated:
"A government that is strong, a government that is
solvent, a government that is compassionate is the
kind of government that endures." I have sought to
provide that kind of government as your President.
'Nith this budget, I leave that kind of government
to my successor.

JANUARY

15, 1969.

INTRODUCTION
The Budget of the U.S. Government sets forth the President's proposals
for Federal programs to help meet the Nation's domestic and international
responsibilities. I t contains estimates of what the programs will cost, and
how the necessary money will be raised to pay for them.
Apart from the individual activities and services which touch our lives
as beneficiaries or taxpayers-defense, social security, home loan guarantees,
postal services, school lunches, highway construction, forest firefighting, and
others-the budget reflects overall taxing and spending policies which have
a major impact on the health of the Nation's economy.
The President presents the budget to the Congress each January, about
6 months before the start of the fiscal year. The budget is a plan, not a
forecast. The Congress may-and usually does-modify the President's
revenue proposals or budget requests, or may add proposals of its own.
Moreover, conditions may vary from the economic assumptions used in
making revenue estimates or the assumptions underlying various program
estimates, such as the size of the crops requiring price supports. There·
fore, by the time the fiscal year ends, nearly 18 months after the budget
is presented, many figures inevitably will have changed.
Because of the varied purposes it serves, the budget is technical and complex. To promote greater understanding of the Government's activities, the
Budget in Brief is published each year to highlight the budget for the public
in a nontechnical way.
This year's Budget in Brief presents the major facts about the budget for .
1970, which President Johnson sent to the Congress on January 15, 1969. In
a year of presidential change, the law requires the outgoing President to
transmit the budget. The new President undoubtedly will revise the original budget proposals or add new ones while the Congress is considering
them.
Vital budget issues will be debated and decided in the next few months.
We hope the information in this booklet will promote wider public understanding and participation in this process.

CHARLES

J. ZWICK,

Director, Bureau of the Budget.

CONTENTS
GLOSSARY

Page

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

PART 1. BUDGET SUMMARY AND FISCAL PROGRAM

5
5
6
8

Budget Program for 1970 . . . . .
Budget Summary. . . . . . . . . .
Fiscal Program for 1970. . . . . . .
Impact of Revenue and Expenditure
Year 1969 . . . . . . . . . . .
Setting Program Priori ties. . . . . .

......
. . . . . . .
. . . . . . .
Control Act in
. . . . . . .
. . . . . . .

.
. . .
. . .
Fiscal
. . .

PART 2. THE BUDGET PROGRAM BY FUNCTION.
National Defense. . . . . - . . . .
International Affairs and Finance . .
Space Research and Technology. . .
Agriculture and Agricultural Resources
Natural Resources . . . . . . . . .
Commerce and Transportation. . . .
Community Development and Housing
Education and Manpower
. . .
Health and Welfare . . . . . . . .
Veterans Benefits and Services .
General Government. . . . . . . .
Interest. . . . . . . . . . . . . .

. . . . . . . . .

.
.
.
.
.
.
.
.

. . . .
. .

. .

.
.
.
.
.

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

PART 3. THE BUDGET IN PERSPECTIVE
Fiscal Policy. . . . . . . . . . . . . . . . .
...
Growth in Government Programs. . . . . .
. . .
Federal Employment. . . . . . . .
....... .
. . . . . . .
A Strengthened Federal System .
Borrowing and the Federal Debt..
........ .

-PART 4. THE BUDGET SYSTEM .
The Federal Budget Cycle. . . . . .
The Budget Concept . . . . . . . .
Efficiency in Reaching Program Goals

· . . . . .
· . . . . . . . . .
. .
· . . . . .

PART 5. BUDGET TABLES . . . . . . .

16
18
21
22
26
28
30
32
34
36
39
42
45
47
48
49
49
50
53
54
55
57
57
60
61
63

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
FISCAL YEAR-Year running from July 1 to June 30 and designated by the calendar year in which it ends.
EXPENDITURE ACCOUNT-The portion of the budget consisting of (1) budget
receipts and (2) budget authority and outlays for all nonlending programs, lending programs not classified in the loan account, and the administrative and
other net expenses of programs in the loan account.
LOAN ACCOUNT-The portion of the budget consisting of the principal amounts
of disbursements and repayments for domestic loans subject to definite requirements for full repayment and for foreign loans made on commercial terms.
AUTHORIZATION-Basic substantive legislation which sets up a Federal program
or agency. Such legislation sometimes sets limits on the amount that can subsequently be appropriated, but does not usually provide budget authority.
BUDGET AUTHORITY (BA)-Authority provided by the Congress-mainly in
the form of appropriations-which allows Federal agencies to incur obligations
to spend or lend money. While largely voted each year, some authority becomes
available automatically under permanent laws-for example, interest on the
public debt. Budget authority is composed of:
• NEW OBLIGATIONAL AUTHORITY (NOA), which is authority to incur
obligations for programs in the expenditure account, plus
• LOAN AUTHORITY (LA), which is authority to incur obligations covering
the principal of loan programs in the loan account.
OBLIGATIONS-Commitments made by Federal agencies to payout money for
products, services, loans, or other purposes-as distinct from the actual payments. Obligations incurred may not be larger than the budget authority.
OUTLAYS-Checks issued, interest accrued on the public debt, or other payments
made, net of refunds and reimbursements. Budget outlays are composed of:
• EXPENDITURES (Exp.)-Outlays relating to the expenditure account, plus
• NET LENDING (NL)-Gross loan disbursements minus repayments in the
loan account.
BUDGET RECEIPTS-Money collected because of the sovereign or other compulsory powers of the Government, net of refunds. (See also proprietary receipts.)
BUDGET SURPLUS OR DEFICIT- The difference between budget receipts and
outlays, representing the expenditure account surplus or deficit plus net lending.
FEDERAL FUNDS-Funds collected and used by the Federal Government, as owner.
The major federally owned fund is the general fund, which is derived from
general taxes and borrowing and is used for the general purposes of the Government. Federal funds also include certain earmarked receipts, such as those
generated by and used for the operations of Government-owned enterprises.
TR UST FUNDS-Funds collected and used by the Federal Government, as trustee,
for specified purposes, such as social security and highway construction. Receipts
held in trust are not available for the general purposes of the Government. Surplus trust fund receipts are invested in Government securities and earn interest.
INTERFUND AND INTRAGOVERNMENT AL TRANSACTIONS-Payments
from one Government agency or fund to another. Interfund transactions are
payments which occur within the Federal fund and trust fund groups. Intragovernmental transactions occur between the two fund groups. Both are treated
as offsets to budget authority and outlays to avoid double counting.
PROPRIETARY RECEIPTS FROM THE PUBLIC-Receipts of Government activities of a business-type or market oriented nature. These receipts are offset
against related budget authority and outlays.
UNDISTRIBUTED INTRAGOVERNMENT AL TRANSACTIONS-Payments
from Federal funds to trust funds for (1) the Government's contribution, as
employer, to Federal employees' retirement systems, and (2) interest paid to
trust funds on their investments in Government securities. To avoid double
counting, these transactions are deducted from the budget totals.
ALLOW ANCE FOR CONTINGENCIES-A lump-sum amount included in total
budget authority and outlays to provide for unforeseen events or for possible costs
of programs for which detailed proposals and estimates of financial needs have
not been completely formulated. This is not a request for appropriations, but
an allowance for possible future requests not yet specifically identifiable.
I

PART I
r

BUDGET SUMMARY AND FISCAL PROGRAM

The budget for fiscal year 1970 reco.gnizes our continuing
responsibility to maintain a healthy economy, provide for essential defense requirements, and pursue urgent programs for meeting the Nation's highest priority domestic needs .
. BUDGET PROGRAM FO'R 1970

The 1970 budget program is designed to:
,. . Support our military commitments in Southeast Asia and
provide for necessary improvements in our overall defense
capability;
• Continue those domestic programs which help disadvantaged groups obtain a fairer share of this Nation's economic
and cultural advancements; and
• Achieve a budget surplus in the year ahead, as well as in the
current fiscal year, thereby relieving the inflationary pressure in the economy and reducing the strains that Federal

borrowing would place on financial markets and interest
rates.
In order to meet our most pressing needs at home and abroad,
we must budget our resources prudently, so as to preserve our
prosperity and stem the rise in prices which has taken place in the
past few years. These objectives require:
• Holding down budget outlays through strict control of program commitments; and
• .Extending for 1 year beyond the June 30, 1969 expiration
date the 10% surcharge on individual and corporation
income taxes, which was enacted last June in the Revenue
and Expenditure Control Act of 1968.

Americans are united in this country's search for peace in
Vietnam. While the fighting continues, however, the 1970
budget must provide for support of military operations in Southeast Asia. When peace efforts in Paris succeed, and military
spending declines, consideration can be given to removal of the
tax surcharge to ease the post-Vietnam transition and help assure continued economic growth and full employment.
Apart from the heavy defense requirements, the budget places
greatest emphasis on overcoming urgent domestic problemsinadequate educational opportunities, slum housing, increased
crime, urban congestion and decay, air and water pollution, lack
of proper health care, and hunger and malnutrition.
Within the framework of a restrictive expenditure policy,
reasonable provision has been made in the budget for the requirements of ongoing programs. Reductions are proposed
wherever possible, and some selected improvements and expansions are recommended, notably increases in benefits under the
social security system.
The tasks are many and strengthened efforts must be turned
toward solving the problems confronting us. The 1970 budget
program will help pave the way for meeting the challenges that
lje ahead.
BUDGET SUMMARY

Assuming adoption of the proposals recommended in the
budget, total outlays in 1970 are estimated at $195~3 billion, with
$194.4 billion of expenditures and $0.9 billion for net lending.
Budget receipts are estimated at $198.7 billion, including $9.5
billion from the extension of present tax rates. Thus, the budget
plans for a $3.4 billion surplus for 1970, compared with a surplus of $2.4 billion for 1969. This outlook represents a sharp
turnaround from the budget deficit in 1968 when total outlays
exceeded receipts by $25.2 billion.
The 1970 budget is based on the unified budget concept recommended by the bipartisan Commission on Budget Concepts and
explained in Part 4. Accordingly, .the budget totals include the
transactions of the social security and other Government trust
funds, and separate expenditures from fully repayable loans.
Excluding net lending, the expenditure account surplus in 1970
is estimated at $4.3 billion, compared with $3.8 billion in 1969.
6

Budget Totals, 1968 -1970
. $ Billions

178.9

18b.1 183.7

Shih to a Budgd Surplus
+3.4

Edimate

-'25.2~

~.~0utlays
Fiscal Yeor:s

1968

1969

1970
Estimate

The expenditure account stlrplus offers a better indication of
the direct impact of the Federal budget on the Nation's income
and production.
To carry forward the budget recommendations, new budget
authority of $210.1 billion will be needed for 1970. Of this
amount, $143.9 billion depends on action during the current session of the Congress. The remainder (mainly for social insurance
trust funds and interest) will become available under existing
law, without current congressional action. The estimated 1970
outlays related to such action total $93.8 billion.
On the basis of the estimates of receipts and outlays, the
Federal debt held by the public will decrease from $290.6 billion
on June 30,1968 to $276.6 billion on June 30,1969, and further
to an estimated $272.6 billion on June 30, 1970. This decrease
reflects (1) the sharp reduction in net Federal borrowing requirements from the unusually high level in 1968, since outlays
in both 1969 and 1970 will be financed entirely from current
revenues, and (2) the conversion of certain mixed-ownership
credit institutions to private ownership.

BUDGET SUMMARY
[Fiscal years. In billions]
Description

1968
actual

1969
estimate

Budget authority (largely appropriations):
Previously enacted. . . . . . . . . . . . . . . . . . . . . .. .
$134.4
Proposed for current action by Congress .... . . . . . . . . . . . .
Becoming available without current action
by Congress. . . . . . . . . . . . . . . . . . . . . . . . . . .
67.8
Deductions for offsetting receipts ........... .
-11. 6

1970

estimate

$127. 8 . . . . . . . . . .
4. 8
$143.9
75.3
-13.3

80.2
-13.9

Total budget authority ............... .

190.6

194.6

210. 1

Receipts, expenditures, and net lending:
Expenditure account:
Receipts ................ .............. .
Expendi tures (excluding net lending). . . . . .

153. 7
172.8

186. 1
182.3

198. 7
194.4

Expenditure account surplus or deficit (- ) .......................... .

-19.2

3.8

4.3

Plus: Loan account:
Loan disbursements .....................
Loan repayments .......................

20.4
14.4

12.5
11. 1

8. 1
7.2

Net lending. . . . . . . . . . . . . . . . . . . . . . . . . .

6.0

1.4

0.9

Equals: Total budget:
Receipts ..............................
Outlays (expenditures and net lending) ....

153.7
178.9

186. 1
183. 7

198. 7
195.3

Budget surplus or deficit (-) ..........

-25.2

2.4

3.4

FISCAL PROGRAM FOR 1970

The overall fiscal program for 1970 is reflected in the budget
proposals for the Government's income and outgo, and in the
relationship of these proposals to the state of the national
economy.

Economic Setting
Early in 1961, the American economy entered into a recordbreaking period of unparalleled prosperity which has continued
for 8 years. These years have produced substantial increases in
employment, income, and production. Over the past 96 months
more than 10 million new jobs have been created, and the Nation's output of goods and services-apart from price changesgrew by 45 %. Per capita personal spendable income-again after
adjusting for prices-rose by nearly a third. The acceleration in
8

economic activity since 1961 has helped to reduce the rate of
llnemployment to its lowest level in 15 years. Prosperity also has
made it possible to reduce by over 17 million the number of
people living in poverty.
Recent price developments, however, have not been satisfactory, even though our record compares favorably with other major nations of the world. Also, interest rates have increased
sharply in recent months and our balance of payments position
needs further strengthening. For these reasons, efforts to
contain inflationary pressures in the coming months will
require not only the fiscal restraints proposed for 1969
and 1970 in the budget, but also appropriate monetary
policy and restraint in price and wage decisions by American
business and labor. A concerted effort is needed tO obtain a
better price performance and a return to a sustainable rate of
economic growt~.
Attainment of reasonable price stability will help improve our
balance of trade, relieve pressures on the money markets, and
foster a reduction in interest rates. With the achievement of
budget surpluses, the Federal Government no longer will have
heavy borrowing requirements exerting an extreme upward push
on interest rates, as was the case in fiscal year 1968.
The present uncertainty over when current negotiations can
bring hostilities in Vietnam to a peaceful conclusion provides an
excellent opportunity for developing procedures needed to
achieve timely adjustments in fiscal policy. Accordingly, the
budget recommends that consideration be given to establishing
an element of flexibility in our tax system, with authority for the
President to raise or lower personal and corporation income
taxes within specified limits-such as up to 5 % in either direction. Such discretion would be subject to congressional veto
within a limited time period.
I

Budget Receipts in J970
Budget receipts in 1970 are estimated to be $198.7 billion,
$12.6 billion higher than in 1969, reflecting both increased yields
from economic growth and from tax proposals.
In addition to the proposed extension of the temporary income tax surcharge, the budget recommends extension of the
present excise tax rates of 7% on automobiles and 10% on telephone services beyond January 1, 1970-when these rates are
scheduled to dro.p to 5 %.
9
340-400 0-69

Budget receipts are estimated at $186.1 billion in fiscal year
1969. If the surcharge and excise tax rates are not extended, the
growth in revenues-mainly resulting from an expanding economy and rising incomes-would appro,x imately offset the revenue loss from the scheduled decline in tax rates. Receipts in
1970 under existing law would be close to the estimated revenues in 1969, and would be inadequate to cover the unavoidable,
built-in increases in budget outlays.

Economic assumptions for receipts estimates.-The basic
economic assumptions underlying the estimates of receipts in
fiscal years 1969 and 1970 are summarized in the following table:
ECONOMIC ASSUMPTIONS
[Calendar years. In billions]
Description

Gross national product .. . .................. .
Personal income. . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate profits before tax. . . . . . . . . . . . . . . . .

1967
actual

$789. 7
628.8
81. 6

1968
preliminary

$860. 7
685.8
92.3

1969
estimate

$921
736
96

Receipts by source.-The Federal tax system relies predominantly on income taxes. In fiscal year 1970, receipts from individual and corporation income taxes, combined, will account for
nearly two-thirds of total budget receipts. Extension of the surcharge is estimated to produce $9.0 billion in income tax
receipts in 1970.
Social insurance taxes and contributions represent 23% of total
estimated budget receipts in 1970. This category includes payroll
taxes to finance social security; ·u nemployment insurance taxes;
premiums for health and supplementary medical insurance; and
civil service retirement contributions by employees. An increase
of $5.4 billion in 1970 is estimated for social insurance receipts,
based both on normal growth in the number of people and the
size of the payrolls covered and on recent and proposed tax
changes, including:
• the full-year effect of the increase from 8.8% to 9.6% in
the combined social security tax rate on employers and employees, which occurred on January 1, 1969. This increase
will yield an additional $1.8 billion in 1970, compared with
1969.
• a proposed increase in the social security taxable wage base
from $7,800 to $9,000 and in the combined employer-em-

ployee tax rate from 9.6% to 10.4% to take effect on January 1, 1970, in order to finance proposed benefit increases.
• a proposed shift in the timing of collections of the Federal
unemployment tax from a lump-sum annual basis to a current quarterly basis.
The latter two proposals are estimated to yield receipts of
$1.7 billion and $0.3 billion, respectively, in 1970.
Excise taxes, levied on a variety of products, activities, and
services, are expected to provide 8% of- total budget receipts
in 1970. An increase of $0.9 billion is anticipated in receipts
from this source in 1970, including $0.5 ,billion from the proposed extension of current rates on automobiles and telephone
services. An additional $0.4 billion reflects proposed legislation
for user charges in the field of transportation-highways, airways, and waterways-so that those who benefit directly from
the Government services provided in this field will pay a fairer
share of the costs.
All other receipts, including estate and gift taxes, customs
duties, and miscellaneous receipts, will amount to 4% of the
total in 1970.
BUDGET RECEIPTS
[Fiscal years. In billions]
Source

1968
actual

1970
estimate

1969
estimate

Individual income taxes . ....................
Corporation income taxes ....................
Social insurance taxes and contributions .. . .....
E XClse
. taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
All other receipts ...........................

$68. 7
28. 7
34. 6
14. I
7. 6

$84.4
38. I
40.5
14. 8
8. 3

$90.4
37.9
45. 9
15. 7
8.8

Total budget receipts ................

153. 7

186. 1

198.7

Under existing law . . . . . . . . . . . . . . . . . . . . . . . . . .
Under proposed legislation :
Income and exci~e tax rate extensions ...... .
Increases in social security wage base and tax
rate .. ......... . ........ . ..............
Accelerated unemployment tax p ayments . . . .
User charges .............................

153. 7

185. 6

186.8

O. 5

9. 5

•

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

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

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

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

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

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

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

. .. ..

1.7
O. 3
0. 4

Budget Outlays in J970

The estimate of $195.3 billion in total outlays in 1970 is based
on a detailed program review designed to hold down outlays as
much as possible, consistent with essential national economic

and program objectives, and makes adequate provision for
urgent national needs at home and abroad.
The estimates for 1970 have necessarily been influenced by
the limitations on total 1969 budget authority and outlays enacted by the Congress in the Revenue and Expenditure Control
Act of 1968. In providing these overall limits, the Congress departed from its traditional procedure of using individual appropriation actions as the primary means of exercising its control
over the Federal budget.
An inflexible spending ceiling unrelated to the appropriations
process forces inefficient or uneconomical practices in carrying
out legislatively approved programs, and in some cases distorts
national priorities. The ceiling on outlays for 1969 follows a percentage formula reduction in agency obligations which was enacted for 1968. It would be unwise to try to correct within fiscal
year 1970 the distortions which have resulted from the statutory
controls imposed for the two preceding years. In view of that fact,
and the need to hold down Federal outlays in a period of inflation, the estimates of expenditures and net lending in 1970 must
reflect the continuation of an executive policy of outlay management.
With such a policy, total budget outlays in 1970 are estimated
to increase by $11.6 billion over 1969. National defense outlays
\vill rise by $0.5 billion, largely for improvements in our strategic
forces, modernization of our tactical air forces, and other increased research and development efforts needed to assure. sufficient deterrent power in the future. These increases will be
substantially offset by reduced outlays for Vietnam operations,
based on projected changes in combat patterns and revised
supply requirements.
Apart from national defense, three-fourths of the increase
between 1969 and 1970 reflects relatively uncontrollable charges
which must be met under present laws. The overall increase
must, further, be judged in the light of the rising workloads and
costs to which the Government-just as businesses, consumers,
and other sectors of the economy-must adjust.
The $8.6 billion increase in relatively uncontrollable outlays
consists of:
• $2.9 billion estimated under existing law for benefit payments and other outlays of the social insurance trust funds-

In keeping with national priorities, major social programs
account for the largest portion of the $11.6 billion increase in
outlays between 1969 and 1970. Of the $7.9 billion increase for
these programs, $4.5 billion is for social insurance payments
including proposed increases in social security benefits.
Aside from the increases for national defense and such relatively uncontrollable outlays as Federal pay and interest, outlays
fo'r all other Federal civilian programs are estimated to increase
by only $0.2 billion.
Change In Budget Outl~ys, 1969-1970
S Billions-Estimated

Fiscal Years
Social Insurance Trust Funds

+7.9

Major Sociol Programs

+2.8
Federal Pay Increase

+0.8

NaHonol Defense

+0.2
AU Other
-0.6

Undistributed lnhogovernmentol Transactionl
.',

Outlays by major function.-Part 2 of this booklet describes
the estimated outlays in 1970 in terms of 12 major functions or
purposes they are designed to serve. These outlays are distributed
as follows:
• National defense programs constitute roughly 4·2% of outlays, or $81.5 billion. About one-third will be s})ent for the
support of special Southeast Asia activities.
• Veterans benefits and services and interest together account
for some $23. 7 billion, or nearly 12 % of total outlays.
• Health and welfare programs will make up almost 28%
of 1970 outlays, or $55.0 billion. Outlays for this functional
14

group are estimated to increase by the greatest absolute
amount from 1969, rising by $6.1 billion and accounting
for 53 of the increase in total outlays. The social insurance
trust funds-mainly social security, unemployment insurance, and Medicare-constitute nearly four-fifths of total
spending for this function.
• Education and manpower, and cornmunity development and
housing are estimated to account for outlays of $10.7 billion
in 1970-about 5% of the total outlays in the budget.
• All other programs amount to $24.4 billion, or 13% of
total outlays.

BUDGET OUTLAYS BY FUNCTION
[Fiscal years. In billions]
Function

1968
actual

National defense ........................... .
$80. 5
(54.0)
Excluding special Southeast Asia . ............. .
4:6
International affairs and finance ............. .
(4.3)
Excluding special Southeast Asia . ............. .
4. 7
Space research and technology .............. .
5.9
Agriculture and agricultural resources ....... .
1.7
Natural resources .......................... .
Commerce and transportation. . . . . . . . ....... .
8. 1
4. 1
Community development and housing ........ .
7.0
Education and manpower .................. .
43.5
Health and welfare. . . . . . . . . . . . . ........... .
Veterans benefits and services ............... .
6.9
13. 7
Interest .................................. .
2.6
General government ....................... .
Allowances:
Civilian and military pay increase ........ . . . . .. .. .. .. . .. " "
·
.
C on t Ingencles.
. . . . . . . . . . . . . . . . . . . . . . . . . .. .. .. .. . . .. .. .. .. .. .
Undistributed intragovernmental transactions:
Government contributions for employee re-1. 9
tirement .............................. .
-2.7
Interest received by trust funds ............ .
Total outlays ....................... .
Total outlays, excluding special Southeast
Asia . .......................... .

1969
estimate

1970
estimate

$81.0
(52. 2)

$81.5
(56. 1 )

3.9

3.8

(3.6)
4. 2
5.4
1.9

(3.4)
3. 9

8.0
2.3

9.0
2.8

7. 2

7.9
55.0

48.8

1.9

7. 7

7. 7
15.2

16.0
3.3

2.9
...................

5. 2

2.8

O. 1

0.4

-2.1
-3.0

-2.2
-3.6

178.9

183. 7

195.3

(152.0) ·

(154. 5 )

(169. 5)

Budget Authority for 1970

Budget authority-mostly in the form of appropriationsmust be provided by the Congress before Federal agencies can
spend or lend funds. Most authority requires congressional action
each year or at fairly regular intervals. However, other amounts

of authority become available under basic law, and require no
specific additional action by the Congress.
For 1970, a total of $210.1 billio-n of budget authority is recommended, including:
• New obligational authority of $209.6 billion for programs in
the expenditure account of the budget, and
• Lo-a n authority of $0.5 billion for loan account programs.
The $15.5 billion increase in total budget authority estimated
between 1969 and 1970 consists mainly of $5.4 billion representing the increase in social insurance trust fund receipts, which
constitute budget authority; $3.6 billion for the Department of
Defense and the military assistance program; and $2.8 billion
for the military and civilian pay increase to be put into effect i~
July 1969.
IMPACT OF REVENUE AND EXPENDITURE CONTROL ACT IN
FISCAL YEAR 1969

In addition to various provisions affecting the tax system, the
Revenue and Expenditure Control Act of 1968 (Public Law 90364) provided for specific limitations on budget authority and
outlays in 1969, representing-for the programs co>
v ered-reductions of $10 billion and $6 billion, respectively, below the levels in
the 1969 budget sent to the Congress on January 29, 1968.
In setting these limitations, the Congress excepted certain programs from the required reductions and subsequently added
other exceptions. In total, the exceptions amount to more than
half of the currently estimated budget, including the largest. uncontrollable programs in the budget-programs which have
shown the sharpest growth in recent years.
The exceptions enacted thus far cover:
• Special support of Vietnam operations;
• Interest;
• Veterans benefits and services;
• Social Security Act trust funds;
• Tennessee Valley Authority activities financed from power
proceeds and borrowing;
• Commodity Credit Corporation price support and related
programs;
• Public assistance grants to States (including Medicaid) ; and
• Aid to schools in federally impacted areas (1968 supplemental payments made in 1969) .

BUDGET AUTHORITY AND OUTLAYS FOR 1969-RELATIONSHIP TO
PUBLIC LAW 90-364
[In billions]

Description

January
1968
estimate

Current
estinlate

Change

--------.---------~---"---------

BUDGET AUTHORITY
P rograms excepted from Public Law 90-364
rImitation
. . ................................
R emainder-covered by Public Law 90-364
rImitation
. . ................................
Total budget authority ................

$98.4

$104.6

+$6.1

103. 3

90. 1

-13.2

201. 7

194.6

-7. 1

BUDGET OUTLAYS
P rograms excepted from Public Law 90-364
rlmltatlon
. . ................................
R emainder-covered bv Public Law 90-364
rImitation
. . ................................

92.6

98.6

+6.0

93.5

85. 1

-8.3

Total budget outlays ..................

186. 1

183. 7

-2.4

Total budget authority as currently estimated for 1969 is
$7.1 billion below the estimate in last year~s budget. An increase
of $6.1 billion is now estimated for the programs excepted
from the provisions of Public Law 90-364, largely for: (1)
special Vietnam costs, which have increased $2.6 billion; (2)
the price support operations of the Commodity Credit Corporation, up $1.6 billion because of larger crops than anticipated
last January; (3) social security trust funds, in which the receipts are $0.9 billion greater than originally estimated; (4)
interests costs, up $0.8 billion, reflecting both higher interest
rates arId a larger debt; and (5) public assistance grants, up
$0.7 billion, based on reports received from participating State
governments.
For the programs affected by the limitation required under
Public Law 90-364, budget authority is now estimated to be
$13.2 billion under last January's estimate. A portion of this
reduction reflects the conversion to complete private ownership
of the Federal National Mortgage Association's secondary
Inarket operations, the Federal intermediate credit banks, and
the banks for cooperatives. However, the $10 billion required
reduction-is being achieved over and above these factors, and
without the need for the President to establish reserves which

17
340-400

O~69-:l

would result in automatic rescission of enacted 1969 budget
authority as authorized under the law.
Total budget outlays in 1969 are now estimated to be $2.4
billion below the original estimate last January. Up"vard reestimates amounting to $6.0 billion have been necessary in the
programs excepted from the spending limitation, reflecting the
same factors as those affecting budget authority.
For the portion of the budget covered by the limitation in
Public La,v 90-364, the current estimate of outlays represents a
reduction· of $8.3 billion below the January 1968 estimate for

1969.
As in the case of budget authority, the required $6 billion
cutback in outlays for covered programs is being accomplished
over and above reductions resulting from financing changes associated with the conversion of certain credit institutions to private ownership. The currently estimated reduction will allow leeway in carrying out the provisions of Public Law 90-364, should
unforeseen increases occur in the affected programs in the
months ahead.
SETTING PROGRAM PRIORITIES

The overall size of the Federal budget reflects the needs and
demands for public services as a whole. The changing composition of the budget reveals much about the Nation's priorities.
Between 1964 and 1970, annual budget outlays will have increased by $76.7 billion, from a total of $118.6 billion to an
estimated $195.3 billion.
A significant portion of this increased spending has been to
support our efforts in Vietnam. Defense spending in 1970 will be
$28.0 billion higher than in 1964, largely for special Vietnam
costs.
As the population grows and the economy expands, outlays
for such public services as improvements in our national
[)arks and other Federal recreation areas, air safety, law enforceInent, and the collection of taxes and customs duties inevitably
•
Increase.
In other areas-such as space exploration, veterans benefits,
farm price supports, housing aids, and conservation of our natural
resources-the Federal Government has undertaken long-range

commitments and programs. And, the Government is increasingly responding to urgent national social problems by launching
programs to reduce unemployment of our workers, protect the
incomes and health of our older citizens, attack the sources of
'poverty, revitalize our urban areas, and ensure equal treatment
and justice for all Americans.
Thus, within the budget, there are significant shifts in
emphasis between 1964 and 1970.
As our efforts have been enlarged to widen the opportunities for
the disadvantaged, and improve the quality of life for all Americans, outlays for major social programs have risen by $37.4
billion, more than doubling since 1964. This is twice the rate
of increase of outlays for any other category of Government
programs.

CHANGING STRUCTURE OF FEDERAL BUDGET OUTLAYS
[Fiscal years. In billions]

Program

1964
actual

1969
estimate

1968
actual

1970
estimate

Change,
1964-1970

-----------I---------~,-----------

National defense. . . . . . . . . . . . . . .
$53. 6
(Special Southeast Asia support). . ....... .
Major social programs:
Social insurance trust funds
(excluding Medicare) ..... .
22. 7
Welfare payments and services.
3.4
Education and manpow'er
training ................. .
1.6
Health (including Medicare) ..
1.8
Low and moderate income
housing ................. .
*
Community and regional development ............... .
0.8
Subtotal, major social
programs ............ .

30.4

Interest ..................... .
9.8
5. 7
Veterans benefits and services. . .
All other programs ............ .
22. 1
Allowances for pay increases and
contingencies. . . . . . . . . . . . . . .. . ....... .
Undistributed intragovernmental transactions ............ . .
-2.9
Total .... ............. .

118.6

$80.5
(26.5)

$81. 0
(28.8)

$81. 5 +$28.0
(25.4)(+25.4)

30.2
4. 6

33.3
5. 3

37.2
6. 1

6. 4
9. 7

6. 5
11. 4

7. 2
13. 0

O. 9

1. 1

+ 5. 6
+ 11. 2
+ 1. 1

1. 8

2. 4

3. 3

+2. 4

53.7

59.8

67.8

+37.4

13. 7
6.9
28.6

15.2
7. 7
25. 0

16.0
24.9

+6.1
+2.0
+2.8

O. 1

3. 2

+3.2

-4.6

-5.1

-5.7

-2.8

178.9

183. 7

195.3

I +76.7

7. 7

+14.4
+2. 6

I
*Less than $50 million.

Trends in Federal Budget Outlays, 1964-1970
Fiscal Years

Estimated Percentage Increase

+ 123'-0

Inferest

National Defense

All Other Programs

Nearly two-fifths of the increase in social programs is for
social security and other social insurance trust fund benefits
to ease the burdens of income loss because of retirement or unemployment. But among the most rapidly growing Federal programs
have been those which represent investment in human resources-through education, manpower training, improved
health care, and aid to the needy.
More than one-tenth of total budget outlays are for unavoidable interest costs and for benefits and services to veterans. These
show a combined increase of $8.2 billion between 1964 and 1970,
representing a growth of 5370.
Outlays for all the other programs of the Federal Government
are estimated at $24.9 billion in 1970, compared with $22.1 billion in 1964. The rise of only one-eighth for these programs in 6
years reflects the general policy throughout the budget of providing increases strictly on a selective basis, giving highest priority to programs which strike at the most urgent problems,
holding down those with less urgency, and reducing outlays
wherever possible and appropriate to current priorities.

PART 2

THE BUD1
GET PROGRAM BY FUNCTION
The outlays of the Federal Government are grouped into 12 functional categories according to the
general purpose served, regardless
of the agency administering the
activity. This section describes the
trends and developments anticipated
in 1970 in the programs within each
of these functions.
Apart from the outlays shown in
the functional categories, the budge t
incl udes allowances and ad j ustments for the final stage of the pay

increase enacted in 1967 for military and civilian personnel, for unforeseen contingencies, and for the
possible costs of programs on which
proposals have not yet been completely formulated. In addition,
deductions are made for two intragovernmen tal transactions:
the
Government's contribution as an
employer to its employees' retirement funds and interest received by
trust funds on their investment in
Government securities.

1970 Outlays by Function

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

NATIONAL DEFENSE
1970 Outlays________________________

$81,542 Million
.,

DEPARTMENT OF DEFENSE-M1LlTARY

21,84r .

Military Constructibn and Other
;.

MILITARY ASSISTANCE
ATOMIC ·· .

Note: The amounts above do not reflect deductions of $200 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

The security and freedom of this
Nation and its allies require that we
maintain defense forces capable of
countering a wide range of potential military threats. While we contin ue to seek peace, we recognize
that the most reliable deterrent to
aggression remains mili tary preparedness. The funds requested for .
1970 will support operations in
Vietnam and will assure that our
regular defense forces maintain a
position of substantial strength.
Outlays for national defense in
1970 are estimated to increase
$543 million over 1969, and $1.0
billion over 1968. Most of this increase is for the military functions
of the Department of Defense. Outlays for atomic energy activities will
also be higher.

Department of Defense-Military

As shown in the accompanying
table, outlays in support of Southeast Asia operations are estimated
to drop in 1970, reflecting changing
patterns of combat activity and the
cessation of the bombardnlent of
North Vietnam. The proposed increase in outlays for Defense-military, excluding Southeast Asia, reflects major improvements in the
strength of the regular military
forces.
Actions contemplated in the
budget will support our share of efforts to improve the combat effectiveness of the NATO forces and,
by streamlining overhead, will reduce the costs of maintaining U.S.
forces in Europe. We also plan steps

ESTIMATED SPECIAL SUPPORT FOR SOUTHEAST ASIA OPERATIONS
:Military personnel !
(in thousands)

. Outlays (in Dlillions)
I

Fiscal year

Defensemilitary ,
excluding
Sout heast
Asia

Special Southeast Asia
Defense military

Economic
assistance 2

Total

In
Other than
in Southeast Southeast
Asia
Asia

.....
r

1965 . . ..... . .... .. . $46, 070
1966 ........ .. ... . . 48,597
1967 ... . ....... . . . . 47,333
1968 ....... .. .... . . 50,826
1969 ........... ... . 48, 978
1970 . . . . .......... . 53, 074

$103 . . . . . . . . .
$282
5,812
424
20, 133
26,547
292
380
28, 812
336
25,397

$103
6,094
20,557
26,839
29, 192
25, 733

2,552
2, 771
2, 848
2, 924
2,853
2,816

103
323
529
623
634
639

1'S trengths as of end of fis'c al year. On Dec. 31 , 1968, there were 634 ,000 military personn.el in Southeast Asia and 2,793, 000 el sewhere .
.2 These outlays are part of the international affairs and finance fu nction. For a discussion,
see page 26.

to increase the proficiency of our
N ATO forces and to protect them
more effectively against surprise
attack.
I t is necessary to choose from
among the many alternative weapons and forces we could develop, the
ones best sui ted to meet our national
securi ty needs. To aid in such
choices, forces are grouped-regardless of the branch of military
service-in terms of the major military missions or programs to be
accomplished. The table on the following page summarizes the active
forces proposed for the major programs at the end of 1970.

Strategic Jorees.-Our strategic
forces continue to reflect our longstanding policy of deterrence. We
must insure that the ability of our
strategic forces to retaliate decisively
will be clear to any nation that
might be tempted to launch a
nuclear attack against the United
States or its allies.
The 1970 budget continues programs ini tia ted in previous years to
insure such capabilities. Funds are
requested to: (1) convert more ballistic missile submarines from Polaris to Poseidon systems, and

replace our Minuteman I with Minuteman III missiles, both with significant improvement in capability,
(2) equip Poseidon and Minuteman missiles with multiple warheads able to strike separate targets, and with penetration aids to
overcome enemy defenses, (3) continue to deploy the Sentinel missile defense system, and (4) modernize our air defense system.

General purpose forces.-We
rDust also be prepared to respond
to challenges against which the use
of strategic nuclear power would be
inappropriate. Our general purpose
forces serve this function, and are
capable of meeting a wide range of
contingencies from countersubversive activity to tactical nuclear warfare . They require by far the largest
portion of the defense budget.
The budget for 1970 provides for
the continued strengthening of our
antisubmarine warfare forces and
other naval forces. Discontinuation
of the bombing of North Vietnam
has resulted in lower than an ticipated losses of aircraft, and should
enable us to meet the requirements
for new and improved aircraft at
reduced levels of procurement. Pro-

SUMMARY OF ACTIVE FORCES
End

Description

1961

of fiscal year

1968

actual

1969

estimate

actual

1970

estimate

SELECTED FORCES BY
PROGRAM
Strategic forces:
Intercontinental ballistic
missile
squadrons ......................
Polaris submarines/missiles (in com.. )........................
mlSSlon
Strategic bomber squadrons ........
Manned fighter interceptor squadrons .... """"""""""""""". """""""

5/80
125

41/656
40

41/656
36

41/656
35

11
365

18
384

18
362

18
347

28
3/3
93

23
4/3
144

21
4/3
147

20
4/3
138

51
101

61
130

56
124

50
124

31,262

34,283

35,274

35,463

819

932

906

895

Military personnel (in thousands) :
Army . " " " " " " " " " " " " " " " " " " " " " " " " " "
Navy" " " " " " " " " " " " " " " " " " " " " " " " " " " "
Marine Corps. . ..................
Air Force ................ ...... ..

859
627
177
821

1,570
765
307
905

1,534
771
313
869

1,508
772
3-15
861

Total, Department of Defense ...

2,484

3,547

3,487

3,455

General purpose forces:
Army divisions ...................
Warships (in commission) ..........
Carrier air wings/groups (attack and
antisubmarine warfare) ..........
Marine Corps divisions/ aircraft wings.
Air Force tactical forces squadrons ...

Airlift and sealift forces:
Aircraft squadrons ..... . .... ......
Troopships, cargo ships, and tankers.

SELECTED DEPARTMENTWIDE
TOTALS
Active aircraft (all programs) .........
Commissioned ships in fleet (all prograIIlS) .... . ........ .. ... . .......

curement in 1970 of the new armed
Cheyenne helicopter should further
improve the ability of our ground
forces to make quick, powerful
strikes with large forces utilizing superior firepower. These forces will
also be aided by a range of improved air-defense systems, antitank
missiles and ground support equipment.

Airlift and sealift.-The aircraft
and ships included in this program
enable us to move forces rapidly
over great distances and to sustain
them in combat. This ability contributes significantly to limiting the
magnitude and reducing the destructiveness of conflict. The 1970
budget provides for the procurement
of the fourth squadron of giant

Research and development.This program is the Nation's investment in our future 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 missionoriented programs. The developmen t costs of the Poseidon missile,
for example, are funded in the
strategic forces program. Major
emphasis in 1970 will be on an advanced manned strategic aircraft,
improvements in our missile technology, a variety of new fighter and
attack aircraft, antisubmarine warfare development, and ship missile
systems.

riching nuclear fuels for ato.mic
power plants, pursuing the various
applications of atomic energy to
peaceful uses, and conducting basic
research in the physical and biomedical sciences.
Outlays of the Commission are
estimated to rise by $120 million in
1970. Increased emphasis will be
given to developing improved nuclear propulsion reactors for submarines. Development and underground testing of a nuclear warhead
for the Sentinel ballistic missile defense system will proceed, and construction of facilities to produce improved warheads will continue.
Outlays for nonmilitary purposes
will also rise. These include construction of two large accelerators
for basic research and a large test
reactor for use in the development
of an improved civilian power reactor.

Military Assistance

Defense-Related Activities

This Nation continues to assist
allies who are unable to provide
fully for their own defense. Outlays
for military assistance grants and
'credi t sales are estimated to be $551
million in 1970. Receipts of the foreign military sales trust fund are expected to exceed outlays by $22
million.

These activities include the Selective Service System, our strategic
and critical materials stockpile, and
readiness planning activities.

C-5A aircraft and the first three of
a projected fleet of 15 fast deployment logistic ships.

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, en-

National Defense
Fiscal year

Total
Percent of
outlays total budget
(in millions)
outlays

---------1970 estimate .... . $81,542
1969 estimate .... . 80, 999
1968 ............ . 80, 516
1967 ............ . 70,081
1966. .. . ....... . 56, 785
1965 ............ . 49,578
1964 ........... . 53,591
1963 ............ . 52,257
1962 ............ . 51, 097
1961 ............ . 47,383

41.8%
44.1
45.0
44.3
42.2
41. 9
45.2
46.9
47.8
48.4

25
340-400 0-69

INTERNATIO'NA'L AFFAIRS AND FINANCE

1970 Outlays_________________________

$3,755 Million

Note: The amounts above do not reflect deductions of $256 million for offsetting receipts ; thus they add to
more than the total budget outlays for the function .

Through its international programs, the United States seeks to
promote a more peaceful and prosperous world in which all nations
can devote their energies to improving the lives of their citizens. In this
task we work closely with other nations and with international organizations. Total outlays for international programs in 1970 will be
$183 million lower than in 1969,
primarily because of decreases in
economic assistance and in Food for
Freedom shipments.

Economic assistance ( AID).Economic assistance programs foster greater world security and stability by supporting economic and
social progress in developing nations. These programs reflect our
recognition that the United States
cannot enjoy security and economic
well-being while hunger and poverty
plague other areas of the world. Assistance is provided mainly to those
developing nations which are willing to take the difficult self-help
steps necessary for progress.
The Agency for International Development (AID) administers our

bilateral economic assistance. In recent years, the funds made available
to AID have been drastically reduced. The 1970 budget calls for a
substantial increase in appropriations to restore AID programs to
a level necessary to accomplish their
basic purpose.
AID outlays are estimated at
$1,973 million in 1970. More than
92 % of these outlays will finance
exports of U.S. goods and services.
Special measures are taken to insure
that these exports do not ~ubstitute
for U.S. commercial exports.
Assistance to Latin America under the Alliance for Progress is
mostly for education, agriculture,
health, and regional integration programs, to promote more rapid social
development as well as economic
growth. Outlays for the Alliance will
total $462 million in 1970.
Economic aid to developing countries in areas O'ther than Latin
America is largely in the forin of development loans and techni.cal assistance. Loans are made to finance
transportation facilities, fertilizer
plants, imports of machinery and
materials, and to' provide other as..

sistance which will enable these
countries to expand their agricultural and industrial production.
Outlays for these loans are estimated at $518 million in 1970.
Under the technical assistance
program, essential advice is provided to help improve health and
education, and expand skills needed
for effective long-term growth. Outlays for this program will amount to
$194 million in 1970.
Loans and grants for supporting
assistance provide commodities,
equipment, and other assistance to
countries which face an immediate threat to their stability or security. In 1970, Vietnam will receive
two-thirds of this assistance, out of a
total estimated at $513 million.
Other AID outlays will total $287
million in 1970, mainly for contributions to international organizations and general support.

Other economic and financial
programs.-Several other programs
support our efforts to improve conditions in developing countries:
• The Peace Corps will have 10,300
volunteers active in more than 60
countries in 1970, helping to improve education, agriculture, and
health.
• U.S. contributions to international
financial
institu tions,
matched in large part by contributions from other donors, will
help finance essential imports and
development projects.
• The Export-Import Bank will
continue to support the growth of
U.S. exports through its direct
loan, insurance, and guarantee
programs.
Food for Freedom.-Under the
authority of the Agricultural Trade
Development and Assistance Act
(Public Law 480), agricultural
commodities will continue to be

sold or donated abroad. Food production in a number of developing countries is increasing, thus reducing the requirements for Food
for Freedom shiprnents abroad. Accordingly, outlays for this program
"vill decrease from $1,037 million in
1969 to $925 million in 1970.
Slightly less than two-thirds of these
outlays will be under sales agreements; the rest represents donations
of food-largely for children and
for workers on development projects.

. Conduct of foreign aDairs.-The
State Department is responsible for
conducting this Nation's foreign affairs. The Department maintains
diplomatic posts in 120 countries,
compared with 99 in 1961. It also
makes the assessed U.S. contributions to the United Nations and
other international organizations.
Foreign information and exchange activities.-The Department of State and the U.S. Information Agency conduct programs designed to improve mutual understanding between our people and the
people of other lands. Cultural and
educational exchange activities,
radio and television broadcasts, motion pictures, and publications are
used to accomplish this objective.
Internationa I Affa irs and Finance

Fiscal year

1970 estimate .... .
1969 estimate .... .
1968 ............ .
1967 ........... .
1966 ............ .
1965 ........... .
1964 ............ .
1963 ............ .
1962 ............ .
1961 ............ .

Total
Percent of
outlays
total budget
(in millions)
outlays

$3, 755
3,938
4,619
4,547
4,490
4,340
4, 117
4, 115
4,492
3,357

1.9%
2.1
2.6
2.9
3.3

3. 7
3.5

3. 7
4.2
3.4

S.PACE RESEARCH AND TECHNOLOGY

1970 Outlays_________________________

$3,947 Million

Note: The amounts above do not reflect deductions of $5 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

The National Aeronautics and
Space Administration (NASA) will
continue its programs to extend
man's ability to operate in space,
advance man's knowledge of the
universe, and use this knowledge
and experience for man's benefit.
Total outlays in 1970 of $3.9 billion are $300 million less than in
1969, largely because of the completion of the most expensive developmental phase of the manned
lunar landing program. This budget
·permits the United States to extend
its manned space flight programs
beyond the manned lunar landing.
Major emphasis is given to conducting a variety of manned scientific experiments in earth orbit
and to a significant continuing effort in unmanned space flight and
ground based research.

Manned space flight.-Plans call
for the first American to set foot
on the moon during the period covered by this budget, marking the
attainment of the national goal established by President Kennedy in

1961. The readiness of the Saturn V
launch vehicle and the Apollo com..
mand and service modules for
lunar flights was demonstrated by
the successful lunar orbit mission in
December 1968.
Launch vehicles and spacecraft
produced for the Apollo program
will be used in lunar exploration for
several years to come. In addition,
developmental work will continue
in 1970 on the Apollo Applications
program leading to manned earth
orbi tal missions of increasing d uration. A manned orbiting workshop
will be used to test man's ability to
perform complex scientific, engineering, and technological tasks in
space for periods of up to 56 days.
Five flights will be conducted in
calendar years 1971 and 1972,
using an upper stage of the Saturn
launch vehicle for a living compartment and laboratory.

Space science and applications.Unmanned exploration of the solar
system will be augmented in 1970
by a series of Planetary Explorer

5.9

$ Billions

-6

Space Research and Technology
Exte:nd~d

Manned Eorth
Orbitol Flight
-

Estimate

Fiseol Years

missions to the near planets, and a
Mariner mission to Mercury in
1973. Several other satellites will be
started in 1970 to provide a continuing flight program for research
in physics, bioscience, and astronomy.
Development of an experimental
satellite to obtain information on
the earth's resources will begin in
1970. This experiment will test our
ability to use photographs and other
data collected by satellite to enlarge the economic benefits derived
from our natural resources. Development of other satellite technology
in support of communications,
meteorology and geodesy will also
continue in 1970.

Space technology and aircraft
technology.-Development of a
nuclear-powered rocket engine will
begin in 1970, based on technolQgy
developed over the past 10 years in

th~

joint NASAl AE'C Rover program. In addition, other advanced
research work will be conducted in
preparation for future space flight
projects. Research and technological work in all areas of aeronautics-ranging from aircraft design and operation to reduction of
aircraft noise-will continue in
1970.
•

Space Research and Technology
Fiscal year

1970 estimate .... .
1969 estimate. . .. .
1968 ............ .
1967 ........... .
1966 ............. .
1965 ........... .
1964............ .

1963 ............ .
1962 ............ .
'1961 ............ .

Total
Percent of
outlays total budget
(in millions)
outlays

$3,947
4-,247
4, 721
5,423
5,933
5,091
4,170
2,552
1,257
744

2.0%
2.3
2.6
3.4
4.4
4.3
3.5
2.3
1.2

0.8

340-400 0-69--5;

AGRICULTURE AND AGR,ICULTURAIL RESOURCE'S

1970 Outlays _______________________'_ $5,181 Million

Agricultural land and Water Resources
-123

Farming and Rural Housing Loans
691

Research and Other Agricultural Services

Note: The amounts above do not reflect deductions of $37 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

Federal agricultural programs are
designed both to improve and expand the contribution of the fann
economy to the Nation's growth and
t'O help solve t~e problems of rural
people and declining rural communities.
Today, as a result of unprecegented technological progress, one
farmworker provides farm products
for 42 persons as compared with 28
in 1961 and o~ly 15 in 1950. From
1950 to 1967, the number of farm
operators and workers declined by
over 5 million. For the better educated and trained, the movement
out of farming has been a benefit.
For others, it has meant migration to
poverty and dependence on welfare
in the urban ghettos.
Outlays for agricultural programs
in 1970 will be $267 million
below 1969. A decrease in ou tlays for price support and other
farm income stabilization programs
more than offsets increases in other
prog~ams. Expanded credit programs, largely on an insured basis:

will help provide low-income rural
housing, improved public facilities,
and greater employment opportu ..
nities in rural areas.

Farm income stabilization.-An. nual farm commodity price sup ..
ports, acreage diversion, and other
programs help adjust agricultural
production to the demand for fann
products and support farm income.
In 1970, outlays are exptfcted to
decline by $588 million to "$3.9 billion-of which $3.1 billion will be
spent on price support and related
programs. Anticipated smaller crops
and increased utilization account
for most of the decrease. Other decreases st~m from the expiration of
land retirement con tracts.
Outlays for the direct distribution
of food to needy families will be increased. A wider variety and increased quantity of foods are now
provided. In addition, supplementary food packages ~re being made
available to poor families with infants or expectant mothers.

Rural electrification and telephone loans.-The Rural Electrification Administration provides
financial assistance for the distribution of electric power and improved
telephone service to rural areas.
Anticipating that rural electric cooperatives will develop supplementary private financing, an estimated
$345 million of electric loan commitments will be provided in 1970.
Loan commitments for telephone
systems will be maintained at the
1969 level of $125 million. Outlays
of $379 million will be required for
these activities.
Agricultural land and water resources.-The Government provides technical and financial assistance to farmers to encourage sound
conservation practices and prevent
irreparable damage to the Nation's
soil and water resources. In 1970,
emphasis is being place on technical
assistance for low-income rural families, combatting critical pollution
problems, and helping local groups
and governmental units concerned
with land management and community development. Work will
continue on 51 authorized resource
conservation and development projects, and planning will be started on
12 additional projects.
Farming and rural housing
loans.-The Farmers Home Administration makes direct loans and
insures private loans to enable
farmers and other rural residents
to improve their farm operations
and housing. In addition, the agency
pro~ides assistance to small communities for planning and constructing water distribution and sewer
facilities.
In 1970, as part of the new 10year housing program, 120,000
housing units for low and moderate

income families will be started or
acquired, more than double the
nUlllber in 1969. Low-interest-rate
loans will be used to help low-income families finance housing in
rural areas.
Greater reliance will be placed on
the use of private funds, with the
Government insuring the ~ loans.
Legislation is proposed to establish
an insured farm operating loan program and to make interest income
on insured water and sewer loans
subject to Federal income taxes. Although total loan commitments will
increase substantially in 1970, receipts will exceed disbursements by
$123 million, largely because of the
shift from direct to insured loans
and the sale of prior loans.

Re.rearch and other agricultural
services.-The Department of Agriculture conducts research and provides grants to States for research
and education to increase agricultural productivity, strengthen the
marketing system, and improve
rural and urban living conditions.
Increased technical and financial
assistance will be given to the States
so that all meat and poultry slaughtered and processed in plants in the
United States can be inspected
under standards at least equal to
Federal standards.
Agriculture and Agricultural Resources

Fiscal year

1970 estimate. '....
1969 estimate. . . ..
1968 ............ .
1967 ............ .
1966 ......... . .. .
1965 ............ .
1964 ............ .
1963 ........... .
1962 ............ .
1961 ........... .

Total
Percent of
outlays total budget
(in millions)
outlays

$5, 181
5,448
5,944
4,376
3,679
4,807
5, 186
5, 139
4, 131

3,340

2.7%
3.0

3.3
2.8

2. 7
4. 1

4.4
4.6
3. 9'

3.4

NATURAL ,RESOURCES

1970 Outlays __________ =-_____________

$1,891 Million

. : G'enerdt Resource :Surveysond "Other

Note: The amounts above do not reflect deductions of $1,823 million for offsetting receipts; thus they add
to more than the total budget outlays for the function.

The objective of the Government's natural resources programs
is to promote the efficient development and utilization of the Nation's
resources in a socially beneficial
manner. In carrying out these programs, consideration is given to
environmental problems-such as
water pollution-sometimes associated with resource development,
and to the needs of future generations.
The Government obtains income
from the management of public
lands through such activities as timber sales, grazing permits, and oil
leases. Receipts from all natural resources programs in 1970 are estimated at $1.8 billion. After deducting these receipts, net budget
outlays in 1970 will be $1.9 billion.

Water resources and power.These programs provide for the construction of projects to:
• produce and distribute power,
• control floods,

• protect watersheds,
• develop water supplies for irrigation and other uses,
• improve harbors and inland navigation, and
• provide facilities for water-related
outdoor recreation.
Outlays for water resources and
power projects in 1970 will be held
close to the 1969 level. Only a
few, high-priority projects will be
initiated.
Federal grants are made to assist
municipalities in constructing waste
treatment facilities for reducing
water pollution. In order to produce a significant acceleration in the
construction of waste treatment
plants, legislation is proposed to allow the Government to meet its
share of an expanded program over
a number of years.
In 1970, research will be continued to improve water pollution control technology, reduce the costs of
desalting water, and explore· the
possibility of increasing rainfall in

arid areas. In addition, a research
program to reduce the costs of putting power transmission lines underground will be initiated.

Land management.-The Federal Government manages 640 million acres of national forests and
lands in the public domain which
produce timber, minerals, and grazing, as well as furnish outdoor recreational opportunities. The programs include the protection of these
resources from fire and other hazards, and the construction of access
roads.
Recreation.-Ne\\T outdoor recreational areas-many of them near
metropolitan centers-are being acquired both by Federal agencies
and by State and local governments
with assistance from the Land and
Water Conservation Fund. National parks and other Federal recreation areas will serve an estimated
793 million visitors in 1970, 56 million more than in 1969.

Minerals.-The Department of
the Interior conducts research in
minerals extraction and utilization.
Environmental problems associated
\vith mineral activities-notably
waste disposal and pollution-are
being emphasized, as is research
which seeks to develop more efficient
ways to reuse materials, and thereby
avoid unnecessary loss of valuable
minerals in mining and industrial
.
processIng.
Gene~al

resource surveys and
other.-Geological Survey programs provide basic information
needed for efficient resource development and use. Geological mapping and analysis aid the search for
minerals and tell us about potential
geological hazards such as earthquakes and landslides. Experimental systems will be developed in 1970
to process, analyze, and disseminate data on earth resources collected by a satellite to be launched
in 1971.
Natural Resources

Fish and wildlife.-In 1970, the
Federal Government will operate
333 refuges to preserve wildlife
habitat and populations. Research
to improve the management and
utilization of wildlife, sport fish, and
commercial fish resources will continue. Research is also being conducted to improve the efficiency of
the fisheries industry and to develop
new technologies to produce lowcost fish protein concentrate for human consumption.

Fiscal year

Total
Percent of
outlays total budget
(in millions)
outlays

---------1970 estimate .....
1969 estimate. . . . .
1968 . .- .......... .
1967 ............ .
1966 ............ .
1965 ............ .
1964 ............ .
1963 ............ .
1962 ............ .
1961 ............ .

$1,891
1, 898
1,702
1, 860
2, 035
2,063
1, 972
1, 505
1, 686
1, 568

1.0%
1.0
1.0
1.2
1 .5
1. 7
1. 7
1. 4
1. 6
1. 6

COMMERCE AND TRANSPORTATION

1970 OUtlays________________________

$8,969 Million

5,081

Fec/eral Funds

~ Trust funds

380

Advancement of Business and Other

Note: The amounts above do not reflect deductions of $95 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

Ground transportation. - The
Federal programs support and
highway trust fund provides grants
enhance the contributions of busito States for construction of the
ness and transportation to the N a41,000-mile Interstate Highway
tion. Outlays in 1970 for these
System, now almost completed, and
programs will be $921 million more
than in 1969, mainly for highway
for construction of primary and secondary roads. Total outlays for
construction.
Despite continued impr9vement,
highway programs, chiefly from the
highway trust fund, will 'b e $4.9
our transportation system is exhibiting strains and shbrtcomingsbillion in 1970, an increase of $729
most notably, heavy congestion at
million over 1969.
our major airports and on our urban
Legislation is being proposed to
highways, and high fatality rates on
increase taxes on diesel fuel and on
our highways. The budget provides
truck size, to distribute highway
for expanded efforts to improve . costs more equitably among users.
transportation efficiency and safety,
In 1970, outlays for urban
and to relieve congestion of airways
mass transportation and high-speed
and urban highways.
ground transportation programs
In 1970, the Government will imwill total $212 million. New techprove its services to business, espeniques for improving urban travel
cially minority entrepreneurs and
will be tested.
American firms entering overseas
Air transportation. - To keep
markets. Continuing efforts will be
pace with the substantial growth in
made to help maintain effective
air traffic, the Federal Aviation Adcompetition and fair business practices, and to foster economic growth
ministration's outlays will increase
by almost 12% over 1969. This inin depressed areas.

crease will permit an expansion of
the air traffic control ' system and
the addition of 4,450 personnel,
mainly air traffic controllers. The
budget includes additional funds
for further expansion contingent
upon enactment of user charges
legislation to defray the costs. Legislation is also being proposed to assist
communities in increasing airport
capacity.
Subsidy costs in support of local
service airlines are estimated at $41.3
million, a decrease of $6.3 million
from the current year.

Water transportation.-Operating and construction subsidies to
the U.S. merchant marine will increase by about 13% in 1970. Outlays for the , Coast · Guard will
increase slightly as a result of expanding workload and developmental work on a test network of
buoys which will provide data on
oceanographic and atmospheric
condi tions.
Area and regional development.-In 1970, the Economic Development Administration will increase~ , assistance in 90 development districts, mainly for facilities
in centers whose economic growth
is important to the entire district's
development.
The
Appalachian
Regional
Commission will continue, through
joint Federal-State efforts, to provide the basic facilities essential to
economic growth in that area. Special emphasis will be given to
health programs, vocational education, and the development highway
system.
Postal services.-Due to the rising ,volume of mail, postal service
costs will rise from $7.3 billion in
1969 to $7.8 billion in 1970. "Vith
existing postal rates, the operating
loss in 1970 is estimated to be $982
million, of which $664 million rep-

resents public service costs and $318
million the postal deficit. A unified
postal rate of 7 cents per ounce for
airmail and first-class mail and an
increase in the rate for single-piece
third -class mail are being proposed
to cover the postal deficit.
The President's Commission on
Postal Organization recommended
that a federally owned corporation
be formed to operate the postal service. Legislation providing for a corporation along the lines recommended should be considered by the
Congress.

Advancement of business.-The
Department of Commerce will ex..
pand efforts to help American business sell goods abroad and to encourage increased travel to the
United States by overseas visitors.
Preparatory work and field enumeration for the 19th Decennial Census
also will be done in 1970.
As in 1969, the Small Business
Administration will emphasize assistance to minority entrepreneurs
and to firms in economically deprived areas. The impact on Government spending of an estimated
28% increase in loan approvals and
guarantees during 1970 will be minimized by increasing private bank
participati~p in SBA's lending programs.
Commerce and Transportation

Fiscal year

Total
Percent of
outlays total budget
(in millions)
outlays

- - - - - --------

1970 estimate .... .
1969 estimate .... .

1968 ......... ', .. .
1967 ............ .
1966 ........... , ,
1965 ............ .
1964 ....... ... , ..

$8,969

8,048
8,076
7,652
7, 135
7,364
6,482

1963 ...... .... . . .

5, 745

1962 ............ .
1961 ............ .

5,410
5,048

4.6%
4.4
4.5
4. 8

5. 3
6.2
5.5
5.2
5. 1

5.2

COMMUNITY DEVELOPMENT A,ND

1970 Outlays_________________________

~OUSING

$2,772 Million

L216

..z,
,

Community Planning and Administration
-845

Support of the Housing Market

In 1970, community development and housing programs will
focus on three major areas:
-,

First, progressing toward the 10year goal established in 1968 of constructing or rehabilitating 26 million
homes and apartments in urban and
rural areas. Six million of these will
be federally aided units that families
with low or moderate incomes can
afford.
Second, assuring the success of
concentrated community development activities by providing sufficient funds and technical assistance
to communities participating in
Model Cities and Community Action programs.

Third, proposing legislation to
establish a new Urban Development Bank. Federal, State, and local
governments will join 'private enterprise to provide technical and
financial assistance for needed capital improvements in the urban areas
of the Nation. The Bank will raise
funds primarily by issuing federally
guaranteed bonds to the public.

Concentrated community development.-The Federal Government helps local communities plan
and implement locally designed programs for a comprehensive attack
on the problems caused by poverty
and blight.
~
The Office of Economic Opportunity has helped establish almost
1,000 Community Action Agencies
(CAA) in rural and urban communities throughout the country.
Directed by boards comprised
equally of representatives of the
poor, private organizations, and
public officials, CAA's foste.r a sense
of community, promote neighborhood centers, and sponsor and coordinate a variety of special education, manpower, and social services.
Under the Model Cities program,
150 communities have now been
selected to partici pate in a new
concept of concentrated neighborhood development. Some of the 75
cities selected in the fall of J967
have already started to ' carry out
their action programs; others are
expected to reach this stage soon.
Another 75 cities were selected re-

cently ,and are now establishing
machinery for joint governmentresident planning.

Low and moderate income housing.-Under the 10-year housing
program, a goal has been set to build
or repair 700,000 new housing
units for families with low and
moderate incomes in 1969 and
1970. Approximately one-fifth of
these will be provided under programs of the Farmers Home Administration and are discussed in the
section on agriculture and agricultural resources. Low-rent public
housing will provide some 205,000
units; rent supplement payments
will permit an additional 41,000
units to be started; and the new
hon1eownership and rental . assistance programs will add nearly
193,000 to the units constructed for
low-income families.
In 1970, Federal contributions to

local housing authorities totaling
$456 million will support 880,000
units of existing and newly acquired
low-rent public housing. A record
100,000 new units will become available for occupancy in 1970, almost
three times the number in 1967. A
new program will be inaugurated
to assure that residents of public
housing receive such essential social
services available in the community,
as counseling, training, and day care
for children of working mothers.
Rent supplements will enable
45,000 low-income families to afford
privately-owned standard housing.
Interest reduction payments will
enable 157,000 families to purchase
their own homes or to rent standard
housing in 1970. These newly authorized programs will gradually replace ,most programs of direct loans
for housing. Outstanding commitments under the direct loan pro-grams will produce another 38,000
units in 1970. In addition, 12,700

residential and business properties
\\Till be improved under the growing
rehabilitation loan program.

Community ~ environme.nt.~In
creasingly, urban renewal is being
focused on revitalizing slurn areas,
with a particular emphasis on
providing housing for families with
low and moderate incomes, and
creating new job opportunities for
the unemployed. Newly authorized
annual funding of development
plans will accelerate renewal efforts.
Federal outlays for renewal in 1970
will exce'e d $900 million, covering
1,680 projects.
New legislation permits the Government -tD_ encourage new communities by guaranteeing securities
issued by private developers and
making grants for public facilities.
It is expected that five new communities will be formed under the
auspices of this program by 1970.
Grants will be made to encourage
local govern~ents to join in the
effort to assist development of new
communities and to coordinate
con.
struction of community facilities
which have areawide importanceparticularly in metropolitan areas.
In addition, Federal assistance
will permit communities to acquire
and develop 42,000 acres of open
space land for recreation and other
purposes.
,

Community
facilities.-Loans
for the construction of public facilities will be made to 'small communities which have difficulty in obtaining private financing at reasonable
interest rates. i\n estimated 290
grants for water and sewer projects
will be made. Construction of 144
new neighborhood service centers
will be authorized, providing for
"one-stop" delivery of social serv.Ices.

Community planning and administration.-The Federal Government provides grants to State
and local governments to assist them
in planning and managing comprehensive programs of community development and sponsors research-1.n
the fields of housing and urban
problems.
Maintenance of the housing
market.-The Government strives
to insure the smooth, effective operation of the private housing market
by:
.
• Assisting private housing to compete for needed funds in the capital market through .the insurance
of housing mortgages, of private
securities backed by mortgages,
and of accounts in savings and
loan associations-which invest
prin1arily in housing mortgages;
• Assuring equal access to sal~s and
rental housing by all -citizens
through enforcement of the new
fair housing laws.
• Helping to provide property insurance in areas threatened by
floods or civil disorders.
Net receipts of $845 million will
result primarily from mortgage sales
and insurance premiums.
Community Development and

Fiscal year

Housing

Total
Percent of
outlays total budget
(in millions)
outlays

---

1970 estimate .....
1969 estimate . . . ..
1968 .............
1967 .. . .........
1966 .............
1965 .. . ..........
1964 .............
1963 ..... . .... . ..
1962 ........... . .
1961 ..... . .......

$2, 772
1.4%
1.3
2,313
4,076
2.3
1.7
2,616
2,644
2.0
288
0.2
-185 . . . . . . . . .
-880 . . . . . . . . .
0.6
589
191
0.2

EDUCATION AND MANPOWE'R

1970 Outlayts________________________

$7,887 Million

2,173 .

1,366

1,685

1,715

Other Education and Manpower Aids

Note: The amounts above do not reflect deductions of $18 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

Education and manpower programs develop the intellectual and
occupational skills of our people,
open opportunities for full participation in community life, and help
promote the social and economic
progress of the Nation.
The Government's education and
manpower programs in 1970 emphasize:
• Improving education for students
from low-income families and
.non-English-speaking homes, and
for the handicapped;
• Enlisting the help of private
business in training and hiring
the hard-core unemployed; and
• Developing and demonstrating
new ideas and approaches to improve the future effectiveness of
education and manpower efforts.
Outlays for education and manpower programs in 1970 are estimated at $7.9 billion, an increase
of $722 million over 1969. High

priority programs to provide greater
educational and employment ppportunities for the disadvantaged
will be expanded, while programs
of lesser priority will be reduced.

Elementary and secondary education.-Two-thirds of the outlays
for elementary and secondary education will go for grants to improve
the academic achievement of disadvantaged children. Under Title I
of the Elementary and Secondary
Education Act, projects are designed
by local districts and cover a wide
range of activities-including curriculum development, increased parental involvement, and remedial
and health services. This aid will be
concentrated on the 100 largest
cities, where a disproportionate
share of children with educational
deficiencies live.
Head Start and Follow Through
will expand to $349 million in 1970
and serve 780,000 preschool and primary grade children from poor fam-

ilies. Bilingual programs for students
from non-English speaking homes
and grants to prevent school dropouts will more than triple to $17
million in 1970.
Outlays for aid to federally impacted areas-which provide for the
operation and construction of
schools in districts with concentrations of children of Federal employees-will be $456 million. These
funds will be sufficient to meet the
requiremen ts of proposed legislation which will adjust payments to
the actual burden associated with
Federal activity.
In addition to these programs,
$443 million is budgeted for other
projects offering a wide variety of
educational and supportive services
to all children, including the handicapped.

Higher education.-Outlays for
higher education provide aid to
students, encourage construction of
academic and housing facilities and
meet certain other special needs.
In 1970, over 2 million grants and
loans will be provided under four
major student aid programs. Educational opportunity grants, workstudy opportunities, and direct loans
assist low-income students to obtain
sufficient funds for a higher education. Insured loans are provided for
students of all income levels.
In addition, Upward Bound,
Talent Search, and a new program
of college services will provid e a variety of tutorial and remedial aids to
low-income students, helping them
to enter and remain in college.
In 1970, total construction activity will be about the same as in 1969,
but the use of interest subsidy grants
will allow private loans to replace a
portion of di_rect Federal loans and

grants. Other budget recommendations will strengthen small colleges
whose own resources are too meager
to finance needed improvements,
provide scholarships for prospective
college teachers, and support institutes to train college and university
personnel.

Science education and basic research.- Outlays for the Nationa1
Science Foundation \\Till increase
from $480 million in 1969 to $500
million in 1970, reHecting an increase for university-based research
activities. The Foundation ,,,ill continue to support science curriculum
improvement at the high school and
college levels, as well as programs
to provide supplementary training
for science teachers.
Vocational education.-The Vocational Education Amendments of
1968 redirect and expand vocational
education programs. New requirements earmark 40% of the basic
grants to States for educating: (1)
~hildren from impoverished areas;
(2) the physically and mentally
handicapped; and (3) post-secondary vocational students. Increased
outlays will also support ne\\' cooperative school-work programs and
experimentation to upgrade vocational education programs.
Manpower training. - Federal
manpower training programs are
designed to equip the underemployed and the unemployed with skills
necessary for productive and satisfying jobs.
Private businesses contribute to
this effort through (1) the National
Alliance of Businessmen, which
was created in 1968 to develop
50.0,000 jobs for the hard-core unemployed in the 50 largest U.S.

cItIes by June 30, 1971, and
the Job Opportunity in the Business
Sector (JOBS) program which reimburses the employer for expenses
incurred in hiring and training
the disad van taged; (2) the Special
Impact program which provides
monetary incentives to industry for
locating new facilities in economically depressed areas and for hiring
and training the disadvantaged;
and (3) the on-the-job training program. In 1970, 300,000 individuals
will gain new job opportunities
through these private sector programs.
There are a nun1ber of Federal
programs for providing jobs and
training for youths and adults in the
public sector. The New Careers program opens subprofessional jobs
through on-the-job training in the
fields of health, recreation, and community services. The Neighborhood
Youth Corps in-school and summer
programs provide part-time work
opportunities for disadvantaged
youths, thereby enabling them
to continue their education. The
public sector programs will serve
515,000 individuals in 1970.
The Concentrated Employment
Program serves rural and urban
"pockets" of high unemployment.
The Work Incentive Program provides necessary job training to potential workers now dependent upon
public assistance. These two programs will help 290,000 persons in
1970.
An additional 230,000 persons
will receive occupational training
in a classroom setting through pro-

grams established by the Job Corps
and the Manpower Development
and Training Act.

Other education and manpower
aids.-The Federal Government
will spend $1.7 billion for other
education and manpower aids as
compared to $1.4 billion in 1969.
These activities cover a wide range
of functions: the Federal-State Employment Service and Unemployment Insurance Service, assistance
to public and college libraries, the
Corporation for Public Broadcasting, adult basic education, educational research and development,
and education and employment
services for the American Indian.
New legislation is needed to:
• Improve the unemployment insuranc.e system by increasing benefits, extending coverage, and
other changes;
• Extend greater protection to
workers in coal mines; and
• Provide a comprehensive occupational safety and health program.
Education and Manpower

Fiscal year
- .------~ --

1970 estimate . . .. .
1969 estimate .... .
1968 ............ .
1967 ............ .
1966 ............ .
1965 ............ .
1964 ............ .
1963 .... . ....... .
1962 ............ .
1961 ........... . .

Total
Percent of
outlays total budget
(in millions)
outlays

---- ----$7,887
7, 165
7,012
6, 135
4,496
2,509
1,998
1, 706
1, 703
1,480

4.0%
3.9
3.9
3.9
3.3
2. 1
1.7
1.5
l.6
l.5

HEALTH AND WELFARE

1970 OUtlays------------------------

INCOME SECURITY PAYMENTS

$54,966 Million

$ MILLIONS
36,054

, Retirement and Social Insurance
4,451

HEALTH SERVICES AND RESEARCH
10,265

Health Services (Mainly Medicare and Medical Assistance)
"

Development of Health Resources
459 '

Prevention an~ Control of Health Problems

SOCIAL AND INDlVrOUAL SERVICES

1 720
Food and Nutrition
I 774

F~cJeral Funds ~ Trllst FundS

Vocatif)nal Rehabilitatio'n and ,Other

Note: The amounts above do not reflect deductions of $2 million for offsetting receipts; thus they add to
more than the total buJget outlays 101 t:le ~ ...... Ct4~.1.

Total outlays for health and welfare programs are estimated to rise
by $6.1 billion in 1970. Emphasis
will be given to expanding health
services for the aged and the needy,
improving health care for mothers
and children, and helping to increase the number of doctors, dentists, and other health professionals.
Legislation is being proposed to liberalize social security benefits by
13 %-including an increase in the
minimum monthly benefit from $55
to $80.
Income Security Payments

In 1970, outlays of $40.5 billion,
an increase of $4.2 billion ove~ 1969,
will be · made for retirement and
social insurance benefits, and to

help meet the subsistence needs of
the poor.

Retirement and social insurance.-These programs help maintain the income of persons who retire or become disabled, dependent,
or unemployed. Benefit payments
are based on prior earnings, and are
financed by taxes and contributions
related to those earnings. Outlays
for retirenlen t and ~ocial insurance
programs are estimated at $36.1 billion in 1970, an increase of $3.8
billion over 1969. Social security
trust funds comprise $29.5 billion,
or 82 % of the total.
Public welfare.-The Nation's
largest welfare aids are ·the cash
assistance and social services pro-

•

vided by the public assistance program. This federally aided program operates through State and
local welfare agencies to help needy
families and individuals. In 1970,
assistance will be provided to a
monthly average of 10 million individuals at a total cost of $7.0 billion. The Federal share is $3.7 billion, according to State estimates of
need.
Recent changes in the law permit
the Federal Government to help
provide assistance in emergency si tuations involving eviction, loss of
utility services, or lack of food; and
to provide work training for welfare
recipients, along wit1h day care for
children of trainees.
Health Services and Re,earch

The Nation today faces increa~
ing demands for health services,
rising medical prices, exploding
medical knowledge, and outdated
practices for delivering health care.
Federal efforts in 1970 will be directed toward improved organization and greater efficiency in the ~e
livery of health services.
Outlays to promote national
health activities will reach an estimated level of $13.0 billion in 1970,
$1.6 billion above 1969.

Health services.-The provision
of health services for the aged, the
disadvantaged and others will be
supported by estimated outlays of
$10.3 billion in 1970. Special efforts
are being mounted to curb the rising costs of medical care.
Medicare, the largest Federal
program financing health services,
has helped ease the burden of
medical bills for the aged and their
families. Legislation is being proposed, to take effect in 1971, to provide Medicare protection to the
almost 2 million disabled persons

who will then be receiving cash
benefits under the Social Security
and Railroad Retirement programs.
Medicaid is enabling more poor
families to receive the medical services they need.
The maternal and child health
program in 1970 will seek to accelerate the decline in the infant
death rate and reduce the number
of physical and mental birth defects.
Emphasis will also be placed on increasing family planning services.
Legislation is being proposed to
provide compre'hensive ·c are for
needy, expectant mothers and infants and to eventually protect all
families against the costs of catastrophic illnesses in children.

Development of health resources.-Efforts to expand health
research, facilities, and skilled manpower will continue to be supported
at a high level in 1970. Greater emphasis ~ill be placed on research
projects which promise prompt results in improving health.
The Nation's health facilities will
be further improved in 1970
through outlays estimated at $330
million for 'construction and modand
ernization of 24,000 hospital
•
long-term care beds, and 113 new
community mental health centers.
Legislation will be proposed to provide guaranteed loans at low rates
of interest to stimulate modernization and new construction of
medical facilities.
Health manpower programs in
1970 will provide 47,500 loans and
31,000 scholarships to medical, dental, nursing and other health professional students. In addition, over
100 medical schools will receive $85
million in Federal support to enlarge and improve facilities for
health education.

Medical schools and hospitals are
combining forces under the Regional Medical Program to insure
that patients receive services consistent with the latest knowledge in the
diagnosis and treatment of heart disease, cancer, and stroke. Assistance
is being given to States and 100 regional agencies in developing their
own comprehensive health plans
under the Partnership for Health
Program.
The recently established National
Center for Health Services Research and Development is emphasizing research on better use of
health manpower and on the identification of factors that generate
cost and price increases.

Prevention and control of health
problems.-=Outlays for disease prevention and control, environmental
heal!h, and consumer protection activities will rise to $459 million in
1970. A 5-year immunization program to eradicate German measles
completely will be started through
a supplemental appropriaticn of $10
million in 1969 and outlays of $19
million in 1970. New programs
will be undertaken to assist in the
rehabilitation of alcoholics and
narcotic addicts. In 1970, States
will be assisted in setting required
air quality standards in 70 air pollution control regions covering 75%
of the urban population. Finally,
consumer protection programs will
expand research into the therapeutic equivalency of chemically
similar drugs, and the safety of oral
con traceptives.
Social and Individual Services
The Federal Government provides many services to individuals
and families to help reduce or avoid
financial dependency. Outlays for

these services will total $1.5 billion
in 1970, an increase of $270 million over 1969.

Food and nutrition.-The food
stamp program increases the food
purchasing power of poor families.
Outlays for this program will increase to $338 million in 1970, $65
million over 1969. The increase will
help expand and modify the program to serve 3.9 million persons by
the end of 1970. Outlays for child
nutrition programs will increase
sharply to provide lunches and
breakfasts, free or at reduced prices
for needy children in schools and
day care centers.
V ocational rehabilitation and
other.-In 1970, more than 1 million disabled persons will receive
rehabilitation services. About 265,000 will be restored to productive
employment, an increase of about
15% over 1969. The total 1970 outlay for vocational rehabilitation will
be $570 million.
Other outlays for social services
include $22 million for mental retardation programs, and $10 million
for the recently enacted program
to prevent and control juvenile
delinquency.
Health and Welfare
Fiscal year

Total
Percent of
outlays
total budget
(in millions) outlays

--------1---- ----1970 estimate .... . $54,966
28.1%
1969 estimate .... . 48,839
26 .6
1968 ...... ~ .... . 43,508
24.3
1967 ......... . .. . 37,605
23. 7
1966 ............ . 31,320
23.3
1965 ........... . 27,209
23.0
1964 ............ . 26,598
22.4
1963 ............ . 25,274
22. 7
1962 ......... . .. . 23,374
21. 9
1961 ........... . 21,847
22.3

VETERANS BENEF·ITS AND SERVI·CES
1970 Outlays________________________

$7,724 Million

1,691

Hospitals and Medical Care
-86

Housing Loans
739

General Operating Expenses and Other

Note: The amounts above do not reflect deductions of $486 million for offsetting receipts; thus they add to
more than the total budget outlays for the function.

Veterans benefits and services
help veterans or their families in
times of need-through income assistance, medical care, home financing, and career training. In 1970,
about one-third of the Nation's 88
million veterans and their dependents or survivors will receive some
assistance through Federal veterans
programs.
Outlays for veterans benefits and
services will rise by $32 million
in 1970. Recent legislation liberalized compensation, pension, educ~tion, and medical benefits. The
1970 budget covers the first full
year costs of these enlarged benefi ts. The special .program to reach
and serve about 800,000 newly discharged servicemen who return to
civilian life each year will be improved. To help accommodate these
increases, legislation is being proposed to eliminate certain duplicative or outmoded benefits.

Service-connected compensasation.-Veterans with disabilities
incurred or aggravated by military
service receive monthly compensation payments based on the severity
of the disability. Survivors of veterans whose death is directly attributable to military service are also paid
monthly benefits. In 1970, payments
of $2.7 billion will be made to 2.4
million veterans or survivors.
N on-service-connected pensions.-Veterans may qualify for
monthly pensions if they become disabled after their military service and
are in financial need . Veterans'
widows and surviving children are
also paid pensions if their income is
below levels set by law. Under
recent legislation, the structure of
pension benefits was changed to
match pensions more closely to the
recipient's income needs, thus increasing both the absolute amount

and the relative share of pensions
paid to lower income recipients. In
1970, $2.2 billion in pension benefi ts will be paid to 2.3 million recipients.

Hospital and medical care.Outlays for hospital and medical
care of veterans will be $1.7 billion
in 1970. The budget provides for
improvements in patient care, new
medical services, expanded medical
education and research, and activation and construction of ne\v hospitals. Aside from outpatient care, an
estimated 865,000 veterans will receive medical treatment in 1970.

Housing loans.-The Veterans
Administration helps eligible veterans to buy homes by guaranteeing
privately financed mortgages and by
making direct loans in rural areas
and small communities where credit
is not generally available. In 1970,
14,400 direct loans will be made
and 273,000 loans will be guaranteed under these programs. Receipts will exceed outlays by $86
million, reflecting the sale of VA
mortgages to private investors and
the obtaining of pri va te financing
for homes which VA acquires in
paying claims on guaranteed loans.

Education, training, and other
readjustment benefits.-In 1970,
over $700 million will be spent on
educating and training an average
of 490,000 post-Korean veterans.
Educational benefits are also available to survivors and to dependents
of those who died or were totally
disabled as a result of military service. An estimated 18,000 war orphans and dependent children and
9,000 widows and wives will receive
academic training in 1970.

Life insurance.-The Veterans
Administration operates or supervises a number of insurance programs. Over 98% of those now
serving in the Anned Forces are
covered by the Servicemen's Group
Life Insurance prQgram, managed
jointly by the VA and the Department of Defense~ Typically the serviceman is issued a $10,000 policy
underwritten by a group of private insurance companies. In 1970
claims or dividends will be paid to
5.9 million beneficiaries and policyholders under all VA insurance
programs.

General operating expenses and
other.-The 1970 budget provides
for increased counseling and assistance to veterans, requiring some increase in administrative costs. One
important element of these costs is
the support of 71 veterans assistance centers, which are expected to
interview and aid 440,000 of the
veterans discharged between 1968
and 1970. Under this program,
special efforts are being made to
reach 84,000 veterans with educational handicaps to help them get
off to a better start in civilian life.
Veterans Benefits and Services
:Fiscal year

1970 estimate .....
1969 estimate. . . . .
1968 ............ .
1967 ............ .
1966.. . ........ .
1965 ............ .
1964 ............ .
1963 ........ . .. .
1962 ............ .
1961 ............ .

Total
Percent of
outlays total budget
(in millions)
outlays

$7, 724
7,692
6,882
6,897
5,920
5, 722
5,681
5,520
5,625
5,688

4.0%
4.2
3.8
4.4
4.4
4.8
4.8
5.0
5.3
5.8

GENERAL GOVERNMENT

1970 Outlays________________________

$3,275 Million

1,' 71

Note: The amounts above do not reflect deductions of $305 million for offsetting receipts· thus they add to
more than the total budget outlays for the function.
'

Outlays for general government
will rise by $327 million in 1970 to
provide for enlarged responsibilities in law enforcement, crime reduction, and civil rights; the
central management of Federal
finances, personnel, property, and
records; various expenses of the
National Capital region; and the
costs of the Congress and the Federal judicial system.

T ax collection and other central
fiscal operations.-The Internal
Revenue Service accounts for over
two-thirds of the outlays for central
fiscal operations. It will process an
estimated 112.8 million tax returns
in 1970, which is 2.5 million more
than in 1969. A larger percentage of
returns will be audited as part of the
effort to improve the integrity and
effectiveness of our Federal tax system. Coin production will also rise,
as will the customs inspection work-

load associated with the growth in
trade and travel.

Law enforcement, justice, and
civil rights.-In 1970, outlays for
these programs will rise by 38%
over 1969, reflecting dramatic new
efforts in the vital areas of law enforcement and criminal justice.
The Crime Control and Safe Streets
l\ct, enacted in 1968, will permit
enlarged and intensified Federal assistance to the States and localities
to enable them to plan and operate
more effective law enforcement and
criminal justice systems. Increases
are also provided for direct Federal crime reduction programs, including an increasingly vigorous
drive . against organized crime in
this country.
Nationwide efforts to secure the
rights of individuals and minority
groups will be expanded in 1970.
Besides continuing the emphasis on

voter registration, public education,
and community relations, the
budget provides for stepped-up
enforcement of our equal employment opportunity laws and for a
meaningful start in the enforcement of the fair housing provisions
of the 1968 Civil Rights Act.

Property and records management.--A restrictive policy toward
construction of ne\v public buildings
will be continued in 1970. In other
areas, the General Services Administration will continue to seek economies in the procurement of goods
and services and the operation and
main tenance of buildings.
National capital region.-This
activity covers the Federal payment
to the District of Columbia as well
as other programs dealing with the
affairs of the Washington metropolitan area. To meet the area's overburdened traffic system, legislation
is being proposed to authorize additional segments of a regional rapid
transit system and to authorize Fed-

eral paymen ts sufficient to cover
two-thirds of the net project cost.

Central personnel management.-Programs to update methods and standards for recruitment,
~ralnlng,
and pay of Federal
employees will continue in 1970.
Through training programs and
grants, Federal agencies are assisting States and localities in improving the caliber of their personnel in selected program areas.
General Government

Fiscal year

1970 estimate .... .
1969 estimate .... .
1968 ............ .
1967 ............ .
1966 ............ .
1965 ............ .
1964 ............ .
1963 ............ .
1962 ............ .
1961 ........... .

Total
Percent of
outlays
total budget
(in millions)
outlays

$3,275
2,948
2,632
2,584
2,360
2,276
2, 103
1,841
1, 703
1,543

1.7%
1.6
1.5
1.6
1.8

1.9
1.8
1.7

1.6
1.6

INTE'REST

1970 Outlays_______________________
Interest payments, mainly on the
public debt, will rise by $1.4 billion
in 1969, and by another $0.8 billion
in 1970.
The average level of the interestbearing debt is up sharply in 1969
and will continue 'h igh in 1970 because of the large deficit in 1968.
Interest rates payable on the debt
have also increased substantially,
and this adds to total costs as matur-

$15,958 Million

ing obligations are refinanced at the
higher rates. Although the budget
surpluses anticipated in 1969 and
1970 will reduce the Federal debt
held by banks, businesses, and individuals, these surpluses result in
large part from the excess receipts
of Government trust funds. The
Federal debt held by these trust
funds will therefore rise, and this,
too, explains part of the increase in
1969 and 1970 outlays for interest.

PART 3

THE BUDGET IN PERSPECTIVE
The U.S. budget significantly influences the economic activity of the
country, and in turn is greatly in·,
fluenced by the changing needs of
the American people.
Each budget essentially represents
a two-part plan:
• First -' an overall fiscal plan for
total outlays and revenues, designed to help maintain stable
economic prosperity and growth.
• Second) a program plan for Government activities and services,
~ISCAL

The Employment Act of 1946
specifically gives the Federal Governmen t the responsibility of promoting maximum employment,
production, and purchasing power.
The overall spending and taxing
policies recommended in the President's annual budget and Economic
Report are a key means for carrying
out this responsibility.
The exercise of fiscal policy requires the Government to reconcile
many different economic objectives
simultaneously-full employment of
resources, an appropriate international balance of payments, reasonable price stability, and the creation
or maintenance of conditions conducive to long-term growth.
In the early part of the 1960's the
American economy was operating at

designed to promote national
security, international cooperation, and domestic well-being.
Over time the Federal budget has
grown from very small amounts to a
multibillion-dollar level. An understanding of the size and trend in the
Federal budget requires consideration both of the Governmenfs fiscal
policy objectives and of the national
problems and goals the budget
serves.

POLICY

less than its potential output. Unemployment was substantial, at times
exceeding 7 % of the civilian labor
force, and much industrial plant cap~city was idle. To fill the gap between actual and potential output, an expansionary fiscal policy
was adopted, chiefly by substantial
reductions in individual,. corporate,
and excise taxes. By increasing the
purchasing power of consumers and
business firms, these reductions in
tax rates fostered a strong and continuing economic expansion with a
striking reduction in unemployment
and in idle plant capacity.
Beginning in mid-1965, with the
growing requirements of the Vietnam War, the overall demand for
goods and services became excessively strong. This resulted in an

upward pressure on prices and an
accelera ted increase in imports. In
1966, therefore, the Federal Government moved to slow down the
overheated economy through a
series of fiscal and monetary
measures.
After a consequent brief pause
in economic growth in the first half
of 1967, the pace quickened later
in the year and inflationary pressures gained renewed strength. In
August of 1967, the President requested a temporary income tax
surcharge on corporations and in-

dividuals. In June of 1968, the Congress approved a 10% surcharge in
the Revenue and Expenditure Control Act of 1968, which also imposed limitations on certain Federal
outlays.
This tax increase and the related
expenditure restraint contributed
heavily to a shift from a Federal
deficit of $25.2 billion in 1968 to an
estimated surplus of $2.4 billion in
1969. The further budget surplus
proposed for 1970 should help move
the economy back to more balanced
growth.

GROWTH IN GOVERNME'NT PROGRAMS

The growth in Federal programs-and the Federal budget-is
in large part a reflection of fundamental changes in the size and
character of the Nation. As the economy expands and population increases, outlays for vital Government services inevitably increase.
Protecting our national security is
one of the foremost responsibilities
of the Federal Government. Since
World War II, outlays for national
defense programs have constituted
by far the largest single function of
the Government. Between 1960 and
1970, national security requirements
will account for fully one-third of
the total increase in budget outlays.
The accelerating pace of growth
and change has also led to expanding requirements for domestic services from the Federal Government
and from State and local governments in meeting the needs of their
citizens.

Growth in the Nation's population and incolne levels alone leads
to demands for more and better
quality public services.

There are over 200 million
people living in the United States
today. In only the past 10 years,
our population increased by over
26 million-more than the entire
population of Canada.
Changes in the age distribution
and location of our people have increased public service demands by
more than this total growth alone
would indicate. Since 1960:
• There has been an increase of
11 % in the age groups under 18
or over 65, which have greater
need for public services such as
education or social security.
These two age groups now constitute 45% of the total population.
• There has also been an increase
of over 15% in the number of
people living in our densely settled Inetropolitan areas, where
spending for public services is
more than one-third higher than
elsewhere.
The economic growth which has
occurred in recent years has led
to a substantial rise in our standard of living. Per capita personal incomes-corrected for price

Selected Program Trends

Thousands
-300

Millions
2.0-

V ocational Rehabilitation

Aid to College Student.
1.5 -

-200
-

1.0-

Grants and

150

LOon,

.5 -

'--"'--_________~.......____.............._I- 0

Millions

Thousands
2.5 -

-120

Tax Colle~tion

Urban Renewal
2.0 1.5 -

-100
Projects Underway

Returns Filed

1.0 -

-90
.5 0 ...._ ·
1959
61

Fiscol Years

69 70 1959

Estimate

changes-have risen by 31 % since
the beginning of the sixties. As our
level of living increases, we not only
desire better private goods and services, but we demand and can afford better public services as well.
This trend is reflected in rising
vvorkloads and costs for Federal
agencies. For example, between
1960 and 1970:
• The number of social security
beneficiaries will rise from 14 million to 26 million.
• Visitors to our national parks will
more than double-from 72 million to 172 million.
• Aircraft landings and takeoffs at
airports with federally-operated

I 0
69 70
Estimate

control towers are increasing from
26 million to 64 million.
• The volume of mail handled by
the Post Office will grow from
64 billion pieces to · 85 billion
.
pIeces per year.
• The number of plants covered by
the Federal meat inspection system will increase by 155%.
In addition to these quantitative
changes, there have been growing
Federal responsibilities as the Government has expanded its role in
helping meet urgent problems. As
our society becomes more complex,
its needs increase in scope and in
depth. Not only do we demand
more education but better educa-

tion. Not only do we want health
care, but more adequate health
care. Not only do we want Inore
cars and faster transportation, but
unclogged roads and uncongested
.
aIrways.
While our standard of living has
risen, we have become increasingly
concerned as a Nation about the 22
million Americans still living in
poverty. An important objective of
public policy in recent years-in
which the Federal Government has
exercised leadership-has been to
provide the measures necessary to
help these individuals become a
productive part of society.
To help meet new or enlarged
responsibili ties, existing programs
have been expanded and new Federal programs have been developed, particularly in areas such as
health, education, manpower training, housing, and community development. For example:
• The Medicare program enacted
in 1965 assures 20 million Americans over the age of 65 of financial assistance for their health
care needs.
• The Medicaid program is helping to meet the medical costs of
more than 10 million men,
women, and children from lowincome families.
• 780,000 disadvantaged children
will be participating in the Head
Start and Follow Through programs to give them a better
chance to succeed in school.
• Title I of the Elementary and
Secondary Education Act of 1965
is helping 9 million children

from low-income families receive
a better education.
• In 1970, an estimated 1.3 million
individuals will be helped to find
suitable jobs through manpower
training programs .
• Under the 10-year housing program initiated last year, the initial
goal is to build or repair 700,000
new housing units for families
with low or moderate incomes by
the end of 1970.

Budget outlays and GNP.While the demand for public services has grown dramatically during
this decade, so has the Nation's ability to pay for these services. Since
1960, the gross national product
(GNP)-the money value of the
goods and services provided during a year-has grown by almost
$400 billion. This increase in GNP
is larger than the total output of the
six countries of the European Economic Community - Germany,
France, Italy, Holland, Belgium,
and Luxembourg-or roughly comparable to the total GNP of the
Soviet Union in 1968.
Despite the increase in outlays,
the size of the Federal budget relative to the size of the national
economy has remained at roughly
one-fifth during the last 15 years.
Estimated outlays for Vietnam in
1970 will amount to less than 3%
of GNP. Excluding special Vietnam
costs and the self-financed social
insurance trust funds, Federal out.lays will amount to 13% of GNP,
compared to 15% in 1960, and 16%
in 1955.

FEDERAL EMPLOYMENT

The growth and inc~eased complexity of public services require
well-trained public employees with
a wide variety of skills. At the end .
of fiscal year 1970, there will be an
estimated 2.7 million full-time Federal civilian jobs, an increase of
1.6% over the cllrren~ year. If parttime and temporary workers are
added, including disadvantaged
youths in summer jobs, total Federal
employment comes to approximately
3 million.
Nearly half of all Federal civilian
personnel work in one agency-the
Department of Defense- many of
them in industrial-type jot>s. The
Post Office Department employs
another one-fifth, and 6 % work for
the Veterans Administration. These
three agencies, ' combined, employ

three out of every four permanent, .
full-time Federal civilian workers.
The two largest Federal employers-Defense and Post Office-account for over four-fifths of the increase in employment between 1965
and 1970, reflecting requirements of
the war in Vietnam and swelling
mail volume. The remaining increase has been needed largely to
operate new programs-like Medicare, Model Cities, the la-year
housing program, and expanded
law enforcement efforts- or to meet
growing workloads such as for air
traffic control, veterans medical
care, and the social security system.
The diverse nature of Federal
employment is mirrored in the geographic location of the employees.
Only about one-tenth of all Federal
employees are employed in the Na-

tional Capital area. Another 8% are
located abroad. Thus, more than
81 % work in various States and
communities across the country.
At the end of 1968, total Federal
civilian employment:
• Accounted for 4.4% of the Nation's nonagricultural employment;
• Comprised less than one-quarter
of the 12~ million governmental
employees at all levels.
Exclusive of the Department of
Defense, Post Office, and Veterans
Administration, the 790,000 workers
employed as of June 30, 1968 in
carrying out all of the other programs of the Federal Government
were fewer in number than the employment in many industries in that
year, including:
• The insurance industry at 955,000;

• The automobile industry at 879,000; and
• The aircraft industry at 854,000.
The Revenue and Expenditure
Control Act of 1968 imposed certain
hiring restrictions on Government
employment in order to reduce the
number of permanent, full-time employees. The Congress subsequently
exempted about one-third of this
employment, but the remaining restrictions have been enforced so
that the total number of full-time
Federal employees estimated for
June 30, 1969 is 22,360 less than
for June 30, 1968. Because arbitrary
employment restrictions unrelated
to budget decisions prevent effective management of programs, the
1970 budget estimates assume that
the Congress will repeal these hiring limitations.

A STRENGTHENED FEDERAL SYSTEM
In keeping with our federal system, State and local governments
have played a y;ignificant role in
providing essential social programs.
In recent years they have administered more than two-thirds of total
governmental spending for domestic
civilian purposes and financed more
than half of these programs from
their own resources. Recognizing the
burdens involved, the Federal Government has provided large-scale
financial aid to help the 50 States
and more than 80,000 local governments meet the costs of rising demands for public services.
Federal aid to State and local
governments is expected to triple in
the course of the present decaderising from $ 7 billion in 1960 to
$25 billion in 1970.
Today, Federal aid to other governmenetal units makes up more

than one-fifth of total Federal outlays for civilian domestic programs.
Such aid is also providing an increasing share of revenues of S ta te
and local governments-18% now
compared with 14ifo in 1960.
The trend between 1960 and
1970 in Federal outlays aiding
State and local governments reflects
the high priority being given to investments in human resources. For
example, the largest increases are
estimated to occur in the following
important areas of domestic concern:
• Health and welfare grants will
rise from $2.6 billion to $10.1
billion, or 287 %, mainly for
public assistance benefits and
Medicaid;
• Education and manpower programs will increase by over 560%,
from $0.7 billion to nearly $4.5
billion;

Federal Aid to State and Local Governments

EstJmate

• Community development and
housing activities are expected to
grow from $0.2 billion to $2.7
billion; and
• These three groups of programs,
combined, account for 76% of
the total increase in grants during the period.
The rapid increase in both the
number and scale of Federal aid
programs has created a greater need
than ever before for close intergovernmental cooperation and coordination.
In the past few years, a number of
steps have been taken to strengthen
the operation of the federal system:
• More effective means of com-

munication and consultation between Federal, State, and local
officials have been established to
facilitate mutual cooperation.
o Principles for determining costs
have been standardized, improved audit policies have been
developed, and joint funding
simplification for all grant programs is being proposed to simplify administrative procedures.
• Certain categorical grants have
been consolidated to relieve some
of the administrative problem
of State and local governments.
This practice should also be extended.

BO,RROWING AND THE FEDERA'L DEBT

As of June 30, 1968, the gross
Federal debt-the sum of debt held
by the public and debt held with-

in the Government-amounted to
$370 billion.

Pe~cent

The Public
esa Per~ent of Gross Nationalf?roducf

Federal Debt Held by

1970
Estimate

The growth of the debt to its
present size is a 20th century development. Most of the increase has
taken place during times of war or
economic downturns, when revenues
fall short of budget needs. During
World War II, taxes were increased
eightfold, but even that was not
nearly enough to cover the heavy
costs of the war. The debt increased
by about $230 billion between 1939
and 1946, an amount equal to almost two-thirds of our present debt.
Since World War II, the economy
has grown much more rapidly than
Federal debt. As a result, the debt as
a percent of the gross national product has declined dramatically.
Another "Nay of looking at the rise
in the Federal debt is to compare
it with the rise in other forms of
debt. Since calendar year 1946:
• Federal debt held by the public
has increased 27% ;

• State and local government debt
has increased 845%;
• Corporate debt has increased
527%; and
• Individual and noncorporate debt
has iJ;lcreased 764 % .
In 1946, the Federal debt accounted for almost 60% of total
public and private debt. In 1968
Federal debt accounted for only
19 % of total debt.
The ownership of the Federal
debt is widespread. Over 20% of
the debt is held within the Government itself, prirnarily by trust funds.
Private citizens own another 20%largely in the form of savings bonds.
The Federal Reserve banks own
about 15% of the debt and commercial banks own a slightly larger
share. The remainder of the debt is
owned by State and local governments, corporations, insurance companies, mutual savings banks, and
others.

PART 4

THE BUDGET SYSTEM
The budget serves as an important vehicle for determining and
meeting national goals. In the
budget process, 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, and the distribution of outlays among individual programs, are determined
through the interaction of the President, the executive agencies, and the
Congress.

THE FEDERAL BUDGET CYCLE
The "budget cycle" is a continuous process in which there are four
identifiable phases: ( 1) executive
formulation and submission; (2)
congressional authorization and appropriation; (3) budget execution
and control; and (4) audit. Each
of these phases interrelates and overlaps with the others.

Executive formulation and submission.-The President's transmission of his budget proposals to
the Congress each January culminates many months of planning and
analysis throughout the executive
branch. Formulation of the 1970
budget, which covers the fiscal year
beginning July 1, 1969 and ending
June 30, 1970, began in the spring
of 1968. About 10 months later, in
January 1969, the budget was
formally transmitted to Congress.
During the period when a budget
is being formulated in the executive
branch, there is a continuous exchange of information, proposals,

evaluations, and policy determinations among the President, the
Bureau of the Budget, and the
various Government agencies.
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. After review in the agency
and by the Bureau of the Budget, preliminary plans are presented to the President for his
consideration. At about the same
time, the President receives projections of the economic outlook and
revenue estim~tes prepared jointly
by the rrreasury Department, the
Council of Economic Advisers, and
the Bureau of the Budget.
Following a review of both sets
of projections, the President establishes general budget and fiscal
policy guidelines for the fiscal year
which will begin about 12 months

later. Tentative policy determinations and planning targets are then
given to the agencies as guidelines
for the preparation of their budgets.
Individual agency budgets are
formulated and reviewed in detail
by the Bureau of the Budget
throughout the fall and early
winter and are presented to the
President for decision. Overall
fiscal policy problems-relating to
total budget receipts and outlaysare also reviewed again. 1'hus, the
budget process involves the consideration simultaneously of individual
program levels, and total budget
outlays and receipts appropriate to
the needs of the economy. The
budget submitted each January reflects both of these considerations.

Congressional authorization and
appropriation.-Congressional review starts when the President sends
his budget to the Congress. The
Congress can change programs,
eliminate them, or add programs
not requested by the President. It
can increase or decrease the amounts
recommended by the President to
finance existing and proposed new
programs. It also legisla tes the
means of raising revenues.
Last year, the Congress enacted
limitations on total budget authority
and outlays in the Revenue and Expenditure Control Act. However,
normally, the Congress does not vote
on budget outlays directly. Under
the traditional procedures, the Congress first enacts legislation which
authorizes an agency to carry out a
particular progranl and, in many
cases, sets a limit on the amount that
can subsequently be appropriated
for the program. Many programs
are authorized for a specified number of years, or even indefinitely;
other programs, including foreign

aid, atomic energy, and space exploration, require annual authorizing legislation.
The granting of budget authority-which permits an agency to
enter into obligations reqUIrIng
either immediate or future payment
of money-usually is a separate,
subsequent action. Most budget authority is enacted in the form of
appropriations, which Inay not exceed the limit established in the
basic authorizing legislation for the
program. (In addition to appropriations, smaller amounts of budget
authority are granted in the form of
contract authority and authority to
spend debt receipts.)
In most cases, budget authority
becomes available each year only as
voted by the Congress. For example, this year $143.9 billion of the
recommended $210.1 billion of new
budget authority for 1970 is dependent on action by the Congress. However, in some cases, the Congress has
voted "permanent" budget authority, under which funds become available annually without further congressional action. Most trust fund
appropriations are "permanent," as
is the appropriation to pay interest
on the public debt.
The consideration of requests for
changes in revenue laws and for appropriations follows an established
pattern in the Congress. They are
considered first in the House of Representatives. The Ways and Means
Committee reviews all proposed
revenue measures; the Appropriations Committee, through its 13 subcommittees, studies the proposals for
appropriations and examines in detail each agency's performance.
Each committee then recon1mends
the action to be taken by the House
of Representatives.
As parts of the budget are ap-

proved by the House, the bills 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 ap~
proval and the measure is then
transmi tted to the President, in the
form of an appropriation or tax
bill, for his approval or veto.

Budget execution and control.Once approved, the budget becomes
the basis for the program operations
of each agency during the fiscal
. year.
Central control over most of the
budget authority made available to
the executive branch is maintained
through a system of "apportioning"
the authority. Under the law the
.
'
DIrector of the Bureau of the
Budget must distribute or apportion
appropriations and other budget
authority to each agency by time
periods (usu~lly quarterly), or by
activities. Ob!igations may not be
incurred in excess of the amounts
apportioned. The objective of the
apportionment system is to plan the
effective and orderly use of available
authority and-for annual appropriations-to prevent the need for
requesting additional or supplemental authority.
I t is, of course ,necessary to insure
flexibili ty if circumstances change.
If developments indicate that an
agency will not reqt lire all the authority made available, "reserves"
are established by the Bureau of the
Budget to withhold amounts not
needed. Such reserves may be released subsequently, if necessary, but
only for the purposes of the appropriation. On the other hand ,

changes in laws or other factors may
indicate the need for more authority, and supplemental requests may
have to be made of the Congress.

Audit.-This is the "final" step
in the budget process. The individual agencies are responsible for
assuring-through their own review
and control systems-that the obligations they incur and the resulting
outlays are in accordance with the
provisions of the authorizing and
appropriating legislation. The Bureau of the Budget reviews substantive and financial reports and keeps
abreast of agency progress in attainment of program objectives. In
addition, the General Accounting
Office conducts after-the-fact audits of the manner in which Government agencies are discharging
their financial responsibilities, and
reports its findings to the Congress.
The purpose of all these reviews is
to assure that programs are carried
out in an effective, efficient, and economical manner.

Relation of budget authority to
outlays.-Not all the budget authority appropriated by the Congress for a particular fiscal year
results in obligations or outlays
within the same year.
• Budget authority for some major
procurement and construction
programs covers the estimated
full cost of the programs at the
time they are started, even though
the outlays take place over a
number of years as the programs
move toward completion.
• Budget authority for many loan
and guarantee or insurance programs also provides financing for
a period of years or represents a
contingency backup in the event
of defaults or other claims.

1970 Budget -

Relation of Budget Authority to Outlays

Figures in brackets represent Federal funds only
.,.> . . '.'

."'" .

'!i'"

-'''''~'''''"'''''''''''''"'~~-'''''--''--'''--''''----'''''''''''''''''''-~~'<'~~-'-'-----''''''7",;",,~~=.,--,

$ Billion"

To be spent in 1970
New Authority
Recommended
For 1970

210.1

Outlays
in 1970

109.4
[106.7]

195.3
[154.7]

[158.2]

Unspent Authority
For Outlays in
Future Vears

Unspent Authority
Enacted in Prior Vears

226.1

[126.5]
. ',,-/.:::H: ;:;:;:fL':>:; . ~:~:~,< ' .'.~,./,. ';, . :,.~~:.

::>

·}'e,_ 't"

To be held for Outlays
in Later Vears 138.5
[76.7]

,.': ':~::::;,A::;::'~'~~>" ijJ..: ,~ . .

. :t·: .

'--.

239.2
[128.3]

.,:,_.,'.

.;., .,::'\. /'~: ,._--.:

i~.

>: :",)

.~-:

NOTE:, The diff,e,~"c·~';i~~~~e~'h!!9raJhv,cl,~. fig"'ti., olld h ,derot funds shown in brackets consists of t,ust fu~s 'qft(I 'In';a,Oy,ernment~l . "
);· tr(f:r1sadi'Olis;\)etWeen fuhds. '.Y. -:
',:::,

•

.. '

' . '

;

+i .

if'

:"V

• Budget authority for trust funds
represents mainly receipts collected under special taxes, which
are used as needed over a period
of years for benefit payments and
other outlays specified in the law.
As a result, there is always a substantial carryover of unspent budget
authority from previous years, most
of which is earmarked for specified
purposes, and is not available for
new program operations.
As shown in the chart above,
$85.9 billion of total outlays in 1970
(over 40%) will be made under

budget authority enacted for earlier
years. Conversely, almost one-half
of 1970 budget authority will not result in o~tlays until future years.
Therefore, when the Congress
increases or decreases the amount
of budget authority requested by the
P~esident for a given year, bUld get
ou tla ys in that year are not necessarily changed by the same amount.
The change in budget authority
may have only a limited effect on
that year's outlays. But its full effect
will influence outlays over a period
of ' years.

THE BUDGE'T CO'NCEPT
The budget concept used in the
1970 budget carries forward basic

changes adopted in the 1969 budget
in accordance with recommenda-

tiDns made by a bipartisan Presidential CDmmissiDn Dn Budget
CDncepts established early in 1967
to study Federal budget cDncepts
and presentation.
The CDmmissiDn's prDposals in. vDlve fDur majDr departures frDm
previDus practice:
• A single unified budget concept
to. replace the several budget CDncepts highlighted in the past.
• Comprehensive coverage in the
budget Df all prDgrams Df the
Federal Government and its agencies, including transactiDns Df
the sDcial security and Dther trust
funds as well as Federal funds.
• Division betlL'een an expenditure

account and a loan account to.
distinguish between expenditures,
which add directly to. the income
Df the recIpIent, and loans,
which the bDrrDwer must repay,
and which gives the lender (the
GDvernment) a financial asset.
• Offsetting of proprietary receipts
from the public against related
outlays and budget au thDri ty.
PrDprietary ~eceipts arise frDm
business-type Dr market-Drie~ ted
activities Df the GDvernmentas
distinct frDm budget receipts,
which are based Dn the GDvernment's sDvereign pDwer to' tax
and regulate.

EFfiCIENCY IN REACHING eROGRAM G'O AtS
, GDDd gDvernment invDlves mDre

Federal GDvernment's structure to.
than gDod laws and intentiDns. To.
changing prDgram requirements.
In 1964, the Office Df Economic
attain prDgram gDals effectively and
prDvide GDvernmen t services effi ..
Opportunity was established to.
spearhead the planning, coordinaciently requires:
tiDn, and operatiDn of the natiDnal
• Proper DrganizatiDnal arrangements;
attack Dn pDverty. In 1965, the Department of Housing and Urban
• Efficient and eCDnDn1icai prDcedures and practices;
DevelDpment was created to. prDvide overall cODrdination of pro.• SDund decisiDnmaking prDcesses;
and
grams to. improve Dur urban areas.
• Well qualified personnel.
In 1966, the Department Df TransAs added functiDns are assumed
pDrtation wa~ fDrmed, bringing
Dr existing Dnes changed, CDnstant
tDgether a number of major transeffDrts are required to' see that the
pDrtatiDn prDgrams previDusly adGDvernment's organizatiDn and
ministered in separate agencies.
prDced ures stay in step with the
LegislatiDn is nDW needed to. adDpt
new rDles invDlved, that wasteful _ a new cDrpDrate form Df organizamethDds are uncDvered and elimtion fDr the postal service, alDng the
inated, and that the GDvernment is
lines recently recommended by the
respDnsive to. the needs Df the
CDmmission Dn PDstal Organization.
peDple.
Significant reDrganizations .. have
been made to improve the effective. Improved Government organizaness of many Dther activities. Pro ..
tion.-In the last 5 years many
gram respDnsibilities have been refundamental DrganizatiDnal refDrms
aligned so. that they relate mDre
have been undertaken to. adapt the
clDsely to. the :r;najor missiDns of the

agencies, and the internal coordination of programs has been
strengthened.
As a further step, the Maritime
Administration-the only major
transportation agency still outside
of the Department of Transportation-should be shifted into that
Department.
Many of the improvements in
Government organization were
achieved under the provisions of the
Reorganization Act of 1949, which
authorizes the President to submit
-reorganization plans to the Congress. The latest extension of this
authority terminated on December
31, 1968. Further extension is
needed so that the new President
will have the authority to make additional adjustments and improvements in governmental structure.
/

Better decisionmaking processes.-The Federal Government is
continuing to develop the planningprograming-budgeting (PPB) system vvhich was introduced on a
Government-wide basis in 1965.
The purpose of this system is to improve the process by which Federal
programs are planned and the
budget prepared.
The essential characteristics of
the PPB system are: (1) development of more concrete and precise
identification of program objectives; (2) systematic consideration
of alternative means of reaching
those objectives most efficiently;
and ( 3) determination of future
cost implications of present decisions. The system stresses modern
analytical techniques to provide both
a firmer basis for choice among

competing program proposals and a
clearer standard for the later measurement of actual accomplishments.
While PPB is not new in concept, it does involve fundamental
improvements in the traditional
budgeting system which will take
several years to accomplish.
Nevertheless, even at the current
stage of development, the PPB system is helping agencies to design
more effective programs and improve the quality of their operations.

Cost reduction.-In 1965, a systematic, formal cost reduction program was initiated throughout the
Federal Government. Under this
new effort, the head of each department and agency has been asked to:
• Assume direct su pervision of a
formal cost reduction program;
• Establish specific dollar cost reduction -goals;
• Subject every major proposed expenditure to searching scrutiny
in terms of costs and benefits;
• Employ independent means to
verify savings; and
• Recommend high priority use of
savings achieved.
Federal employees were urged to
make cost reduction a personal goal,
and to redouble their efforts to
achieve savings and conduct their
work as efficiently as possible.
An Advisory Council on Cost
Reduction was established in 1967 to
broaden and strengthen the Government's drive for economy and efficiency in all its operations. The
Council is consulting with leaders in
business and research to draw on
their experience and ideas for reducing costs.

PART 5

BUDGET TABLES
Budget Receipts, Outlays, Financing, and Debt, 1959-1970. . . . . . .
Budget Receipts by Source and Outlays by Function, 1959-1970. .
Budget Outlays by Subfunction, 1959-1970.... . . . . . . . . . . . . . . . . .
Budget Authority and Outlays by Agency, 1968-1970.. . . . . . . . . . .
Outlays and Receipts of Trust Funds, 1968-1970. . . . . . . . . . . . . . . .
Summary of Full-Time Permanent Employment in the Executive
Branch, 1968-1970. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Federal Finances and the Gross National Product, 1959-1970. . . . .
Budget Receipts and Outlays, 1789-1970. . . . . . . . . . . . . . . . . . . . . . .

Page

64
65
66
69
70
70
71
72

BUDGET RECEIPTS, OUTLAYS, FINANCING, AND DEBT, 1959-1970 (in millions of dollars)
I
Description

Estimate

Actual

1970

1962

1963

1964

1965

1966

1967

1968

1969

94,378
96,604

99,657
104, 480

106, 572
11 1,459

112, 669
118, 041

116, 813
117,1 82

130, 864
130, 822

149,562
153,299

153, 676
172, 830

186, 092
182, 315

198,686
194,356

2, 122

-2,226

- 4, 823

- 4, 887

-5, 372

- 369

- 3,736

-19,153

3,777

4,330

7, 859
5,201

8, 310
6, 427

7, 869
6, 671

9, 621
7, 271

9, 646
9, 791

10, 237
9, 693

10, 911
9, 662

14, 628
10,796

17, 676
12, 623

20, 422
14, 389

12,478
11,092

8,113
7, 197

_____________________________________

2, 659

1,882

1, 198

2, 351

- 145

545

1, 249

3, 832

5,053

6, 032

1,386

916

Total budget:
Receipts ___________________ _____ ___________________
Outlays (expenditures and net lending) ___ __ ________ __

79, 179
92, 111

92,470
92, 230

94, 378
97, 802

99, 657
106, 830

106,572
111 , 314

112,669
118, 585

116, 813
118,431

130,864
134, 654

149, 562
158,352

153,676
178,862

186, 092
183,701

198,686
195,272

Budget surplus or deficit(-) ______________________

-12, 932

240

-3, 424 / -7, 174

- 4, 742

- 5,916

- 1, 618

- 3,790

-8,790

-25,187

2,391

3,414

Budget financing:
Net borrowing from the public or repayment of borrowing( - ) ______________________________ _____________
Other means of financing ______________ __________ ______

8,665
4,267

2, 142
- 2,382

1, 465
1, 959

9, 734
-2,560

6, 120
- 1, 378

3, 089
2, 827

4, 037
-2,419

3, 080
710

2, 854
5,936

23,095
2,092

-3, 091
700

-4,000
586

Total budget financing ___________ __ ______________ _

12,932

-240

3,424

7, 174

4,742

5, 916

1,618

3, 790

8,790

25,187

-2,391

3, 414

287,739
234,970

290,799
237,112

292,869
238,577

303,227
248, 311

310,775
254,431

316, 728
257, 520

323,096
261,557

329,419
264,637

341,309
267,491

369, 724
290,586

365,159
276,586

371 , 482
272,586

1959

1960

1961

79, 179
89, 453

92, 470
90, 348

Expenditure account surplus or deficit (-) __________ -10, 274

Receipts, expenditures, and net lending:
Expenditure account :
Receipts ___________________________________________
Expenditures (excludes net lending) __________________

Loan account:
Loa n disbu rsements ________________________________
Loan repayments ___________________________________
Net

lending ~

outstanding
debt, end of year:
Gross Federal debL _______________________ ____ _______
Held by the public ________________ _________ _______ ____

BUDGET RECEIPTS BY SOURCE AND OUTLAYS BY FUNCTION, 1959-1970 (in millions of dollars)
Actual

Description
1959

1960

1961

1963

1962

Estimate
1964

1965

1966

1967

1968

1969

1970

- - - - - - - - - - - - - - - - - : - - - - - - - 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - 1 -____:--- - - - - _ _ _ _ _-"". _____
RECEIPTS BY SOURCE

Individual income taxes ________________________________
Corporation income taxes_______________________________
Social insurance taxes and contributions (trust funds):
Employment taxes and contributions___________________
Unemployment insurance 1__ _________________________
Contributions for other insurance and retiremenL _______
Excise taxes:
Federal funds _______________________________________
Trust funds (highway)_ ______________________________
Estate and gift taxes___________________________________
Cu stoms d uties________________________________________
Miscellaneous receipts 2________________________________

Total receipts__________________ ___________________________
Federal funds__ __ __________________ ____ __ __ ___
Trust funds ___________________________________

36,719
17,309

40,715
21,494

41,338
20,954

45,571
20,523

47,588
21,579

48,697
23,493

48,792
25,461

55,446
30,073

61,526
33,971

68,726
28,665

84,400
38, 100

8,821
2,131
768

11,248
2,667
767

12,679
2,902
855

12,835
3,337
873

14,746
4,112
944

16,959
4,045
1,006

17,359
3,819
1,079

20,662
3,777
1,127

27,823
3,659
1,866

29,224
3,346
2,051

34,842
3,300
2,366

39,863
3,575
2,431

8,504
2,074
1,333
925
594

9, 137
2,539
1,606
1, 105
1,193

9,063
2,798
1,896
982
910

9,585
2,949
2,016
1,142
826

9,915
3,279
2, 167
1,205
1,036

10,211
3,519
2,394
1,252
1,093

10,911
3,659
2,716
1,442
1,576

9,145
3,917
3,066
1,767
1,885

9,278
4,441
2,978
1,901
2,120

9,700
4,379
3,051
2.038
2~498

10,325
4,475
3,200
2,300
2,784

10,737
4,963
3,400
2,300
3,117

99,657

106,572

112,669

116,813

130,864

149,562

153,676

186,092

198,686

79,635
20,022

83,463
23,109

87,111
25,558

90,863
25,950

101,344
29,520

111,732
37,829

114,627
39,049

141,050
45,042

147,795
50,891

80,999
3,938
4,247
5,448
1,898
8,048
2,313
7,165
48,839
7,692
15,171
2,948
100
-5,105

81,542
3,755
3,947
5, 181
1,891
8,969
2,772
7,887
54,966
7,724
15,958
3,275
3, 150
-5,745

--79,179

92,470

65,679
13,500

75,563
16,907

94,378
75,118
19,260

90,400
37,900

OUTLAYS BY FUNCTION 2

National defense ______________________________________
46,617
45,908
47,383
51,097
52,257
53,591
49,578
56,785
70,081
80,516
Internationalaffairsandfinance_________________________
3,267
3,054
3,357
4,492
4,115
4,117
4,340
4,490
4,547
4,619
Space research and technology __________________________
145
401
744
1,257
2,552
4,170
5,091
5,933
5,423
4,721
Agricultureandagriculturalresources____________________
5,365
3,322
3,340
4,131
5,139
5,186
4,807
3,679
4,376
5,944
NaturaJresources _____________________________________
1,209
1,019
1,568
1,686
1,505
1,972
2,063
2,035
1,860
1,702
Commerce and transportation __ __ ____ __ ___ _____ __ __ ____ _
4,451
4,774
5,048
5,410
5,745
6,482
7,364
7,135
7,652
8,076
Community development and housing ____________________
851
971
191
589
-880
-185
288
2,644
2,616
4,076
Education and manpoweL ____ ________ _____ __ ____ __ __ ___
1,081
1,282
1,480
1,703
1,706
1,998
2,509
4,496
6,135
7,012
Health and welfare__ __________________________________
17,690
18,734
21,847
23,374
25,274
26,598
27,209
31,320
37,605
43,508
Veteransbenefitsandservices __________________________
5,428
5,426
5,688
5,625
5,520
5,681
5,722
5,920
6,897
6,882
7,070
8,299
8,108
8,321
9,215
9,810
10,357
11,285
12,588
13,744
Interest_ _____________________________________________
GeneralgovernmenL __________________________________
1,173
1,334
1,543
1,703
1,841
2,103
2,276
2,360
2,584
2,632
Allowances for pay increase and contingencies ____________ --------- - ---------- --- --- ---- ---------- - ---- -- --- _____ ____ ___ ______________________ _______________ _
Undistributedintragovernmentaltransactions _____________ -2,238
-2,296
-2,495
-2,558
-2,674
-2,939
-3,174
-3,431
-4,009
-4,570

Total outlays_________ _____________________________________

92, III

92,230

97,802

106,830

111,314

118,585

118,431

134,654

158,352

178,862

183,701

195,272

Federal funds _________________________________
Trustfunds___________________________________
Intragovernmentaltransactions __________________

77,111
17,323
-2,322

74,869
19,986
-2,626

79,339
21,774
-3,311

86,599
23,394
-3,163

90,135
23,898
-2,719

95,761
25,941
-3,118

94,807
27,081
-3,457

106,513
31,809
-3,668

126,780
36,932
-5,360

143,105
41,529
-5,771

148, 160
43,037
-7,496

154,722
48,431
-7,881

Includes Federal funds of $321 million in 1959 and $339 million in 1960.

Includes both Federal funds and trust funds.

BUDGET OUTLAYS BY SUBFUNCTION, 1959-1970 (in millons of dollars)
Actual

Function and subfunction

1963

1964

1965

1966

1967

1968

1969

1970

14,532
13,032
11,594
6,319
1,602
-163

16,632
13,000
11,874
6,376
513
- 251

15,351
14,195
11,932
7,021
1,236
-159

11,839
14,771
12,349
6,236
928
-150

14,339
16,753
14,710
6,259
2,279
-160

19,012
19,787
19,000
7, 160
2,636
-138

23,283
21,954
20,578
7,747
3,975
-164

24,337
23,665
22, 106
7,545
277
-140

23,435
24,164
21,841
7,805
1,378
-152

43,294
2,713
1,351
104
-80

46,916
2,806
1,337
92
-53

48,143
2,758
1,406
24
-74

49,577
2,764
1,209
172
-130

45,973
2,625
1,125
136
-281

54,179
2,403
1,003
-62
-738

67,457
2,264
858
-17
-481

77,373
2,466
654
139
-116

77,790
2,451
610
282
-135

78,471
2,571
529
171
-200

45,908

47,383

51,097

52,257

53,591

49,578

56,785

70,081

80,516

80,999

81,542

1,299
1,524
418
236
139
-349

1,458
1,613
-222
214
137
-146

1,823
1,805
72
216
158
-716

1,947
1,836
489
248
197
-226

2,040
2,043
-75
346
201
-441

2,049
1,997
-241
296
207
-191

1,852
2,041
347
223
-123

1,784
2,141
188
315
227
-165

1,452
2,319
738
336
245
-542

1,204
1,936
1,117
354
253
-245

1,037
2,093
433
372
244
-242

925
1,973
492
385
236
-256

3,267

3,054

3,357

4,492

4,115

4,117

4,340

4,490

4,547

4,619

3,938

11
26
21
87
1
- *
145

113
133
52
72
30
-*

279
249
87
51
79
-*

565
420
159
31
82
-*

2,768
754
432
40
178
-1

3,538
751
484
58
262
-2

4,210
778
435
75
435
-1

3,649
796
440
89
452
-2

3,096
700
410
128
390
-3

2,756
597
381
152
365
-4

401

744

1,257

1,516
576
303
36
122
- * !
2, 552 1

5,091

5,933

5,423

4,721

4,247

3,710
180
324

3,803
187
325

3,234
215
342

1,932
214
347

2,536
244
353

3,934
303
351

4,509
352
353

1959

1960

1961

1962

National defense:
Department of Defense-Military:
Procurement __________________________________________________
Military personneL ____________________________________________
Operation and maintenance _____________________________________
Research and developmenL __ __________________________________
Military construction and otheL _________________________________
Deductions for offsetting receipts ______________________________

14,409
11,801
10,378
2,866
2,311
-298

13,334
11, 738
10,223
4,710
1, 750
-275

13,095
12,085
10,611
6,131
1,608
-236

Subtotal, Department of Defense-Military 1__________________
Ato mice nergy 1 _________________________________________________
Military assistance 1______________________________________________
Defense-related activities _________________________________________
Deduc toIons f or 0 ff se tt Ing receipts 2 ____ . __________________________

41,467
2,541
2,236
379
-5

41,479
2,623
1,631
244
-69

Total national defense ______________ _________________________

46,617

nternational affairs and finance:
Food for Freedom _______________________________________________
Economic assistance (AI D) _________________________ ___ ____________
Oth er economic an d flnanCla I programs _____________________________
Conduct of foreign affairs ____ _____________________________________
Foreign information and exchange _________________________________
Deductions for offsetting receipts ________________________________
Total international affairs and finance _________________________ ..

space
research and technology:
Ma nned space fJighL _______________ . _____________ _______________
Space science and applications _______________ _____________________
Space technology _________
Ai rcraft technology _____ _________________________________________
Su pporti ng activities _____________________________________________
Deductions for offsetting receipts ________________________________
0

____________________________________

Total space research and technology _________________________ __

Agriculture and agricultural resources:

Ilzarlon ________________________________________
Farm Income sa
t bT
Rural electrification and telephone loans ___________________________
Ag riculturalland and water resources _____________________________
0

Estimate

4,057
209
346

2,222
222
324

2,172
191
347

2,870
167
368

4,170

3,755
2,412
628
358
159
395
-5
3,947

3,921
379
351

Farming and rural housing loans ___ ___ __________________________ _Research and other agricultural services ___________________________ _
Deductions for offsetting receipts _______________________________ _

476
309
-32

271
312
-29

317
344
-30

Total agriculture and agricultural resources ____________________ _

5,365

3,322

3,340

397
363
-34
4,131

546
415
-36

471
441
-41

573
485
-42

698
531
-43

717
570
-44

779
618
-42

-335
655
-87

-123
691
-37

5,139

5,186

4,807

3,679

4,376

5,944

5,448

5,181

Natural resources:
Water resources and poweL _____________________________________ _
land management ______________________________________________ _
Recreation _____________________________________________________ _
Fish and wildlife _______________________________________________ _
Minerals ____________________ __________________________________ _
General resource surveys and otheL ______________________________ _
Deductions for offsetting receipts _______________________________ _

1,180
283
85
69
39
50
-497

1,241
305
75
69
30
47
-748

Total natural resources _____________________________________ _

1,209

1,019

Commerce and transportation:
Grou nd tra nspo rtation ________ ___ ________________________________ _
Air tra nspo rtation ______________________________________________ _
Water transportation ____________________________________________ _
Area and regional developmenL __________________________________ _
Postal service _______________ ___________________________________ _
Advancement of business and otheL _____________________________ _
Deductions for offsetting receipts _______________________ ________ _

2,646
494
436
111
774
166
-176

Total commerce and transportation ____ __ _____________________ _

4,451

Community development and housing:
Concentrated community developmenL ___________________________ _ ----- ---low and moderate income housing _______________________________ _
122
Commun!ty en~ir~nmenL _______________________________________ _
75
Community facilltles ____________________________________________ _
25
Community planning and administration ___________________________ _
-35
Maintenance of the housing markeL ______________________________ _
674
Deductions for offsetting receipts _______________________________ _
-10

~
-.....,J

1,395
428
93
74
28
50
-501

1,578
382
96
82
30
56
-539

1,718
422
114
95
25
64
-934

1,798
459
132
107
46
68
-637

1,867
509
135
122
59
77
-706

2,061
556
153
132
62
87
-1,016

2,158
618
194
137
73
91
-1,412

2,251
639
229
156
85
100
-1,758

2,279
663
321
164
87
105
-1,720

2,341
645
372
164
81
110
-1,823

1,568

1,686

1,505

1,972

2,063

2,035

1,860

1,702

1,898

1,891

2,984
568
509
120
525
193
-125

2,656
716
569
188
914
194
-189

2,817
781
654
132
797
352
-123

3, 057 ~
808
672
242
770
296
-99

3,686
835
658
538
578
309
-123

4,092
875
728
557
805
463
-156

4,043
879
708
315
888
409
-107

4,093
945
765
416
1,141
407
-115

4,367
951
844
501
1,080
493
-159

4,327
1,144
885
706
929
183
-126

5,081
1,332
936
781
552
380
-95

4,774

5,048

5,410

5,745

6,482

7,364

7,)35

7,652

8,076

8,048

302
391
365
3'8
16
1,545
-13

452
478
465
74
33
1, 133
-19

648
948
486
106
37
1,863
-12

732
935
801
192
60
-349
-59

1,216
1, 131
984
207
78
-845

105
18
-72
787

-11

145
15
-79
-36
-9

227
27
11
169
-16

173
36
24
-1,289
-22

240
51
29
-511
-31

51
81
331
46
32
-237
-16

--------- --------- --------- --------- --------170
145
155
198
37

8,969

- *

Total community development and housing ____________________ _

851

971

191

589

-880

-185

288

2,644

2,616

4,076

2,313

2,772

Education and manpower:
Elementary and secondary education ______________________________ _
..
,
Manpower t ralnlng _____________________________________________ _
Higher education _______________________________________________ _
Science education and basic research _____________ .:. _______________ _
Vocational education ____________________________________________ _
Other education and manpower aids ______________________________ _
Deductions for offsetting receipts _______________________________ _

259
4
225
106
38
451
-3

327
4
261
120
39
535
-3

332
4
286
143
40
679
-4

337
5
350
183
40
792
-4

392
57
428
206
42
585
-5

404
116
383
310
41
750
-5

478
336
413
309
132
850
-9

1,646
731
701
368
136
925
-11

2,286
940
1,159
415
250
1,097
-11

2,430
1,263
1,392
449
265
1,227
-16

2, 182
1,511
1,368
480
252
1,386
-14

2,373
1,685
1,366
500
266
1,715
-18

Total education and manpoweL ____ -' _________________________ _

1,081

1,282

1,480

1,703

1,706

1,998

2,509

4,496

6,135

7,012

7,165

7,887

See footnotes at end of table.

BUDGET OUTLAYS BY SUBFUNCTION, 1959-1970 (in millions of dollars)-Continued
Actual

Estimate

Function and subfunction

1963

1964
----

1965

1966

1967

1968

1969

1970

19,491
2,333

21,262
2,633

21,969
2,788

22,282
2,829

25,309
2,799

26,602
3,045

29,267
3,568

32,293
3,979

36,054
4,451

277

411

476

548

624

929

4,718

7,487

9,015

10,265

528

627

748

935

1,207

1,123

1,620

2,352

2,213

2,332

2,704

218
78
-2

234
83
-3

241
100
-4

261
140
-9

284
165
-482

308
188
-410

299
248
-197

363
412
-111

418
531
-61

505
488
-18

623
601
-2

720
774
-2

17,690

18,734

21,847

23,374

25,274

26,598

27,209

31,320

37,605

43,508

48,839

54,966

Non-service-connected pensions __________________________________
Hospitals and medical care _______________________________________
Housing loans ___________________________________________________
Education, training, and other readjustment benefits _________________
Life i nsu ra nce __________________________________________________
General operating expenses and otheL _____________________________
Deductions for offsetting receipts ________________________________

2,071
1,152
921
121
743
678
253
-512

2,049
1,265
961
122
603
698
242
-514

2,034
1,532
1,030
159
400
826
244
-537

2,017
1,635
1,084
236
152
778
234
-511

2,116
1,698
1,145
-109
96
840
235
-501

2,158
1,743
1,229
44
69
668
272
-502

2,176
1,864
1,270
49
609
250
-497

2,221
1,910
1,318
169
42
523
255
-518

2,310
1,893
1,391
304
292
924
293
-509

2,466
2,048
1,469
210
462
407
311
-492

2,600
2, 127
1,582
252
630
652
338
-490

2,685
2,183
1,691
-86
739
695
303
-486

Total veterans benefits and services ___________________________

5,428

5,426

5,688

5,625

5,520

5,681

5,722

5,920

6,897

6,882

7,692

7,724

General government:
Tax collection and other central fiscal operations _____________________
Law enforcement, justice, and civil rights ___________________________
Property and records management _________________________________
Legislative and judicial functions __________________________________
National capital region ___________________________________________
Central personnel managemenL ___________________________________
Executive direction, territories, and otheL __________________________
Deductions for offsetting receipts ________________________________

576
255
274
149
32
93
107
-313

573
263
351
158
30
82
108
-231

622
289
356
170
50
138
131
-214

668
300
355
192
73
151
158
-196

733
323
416
194
70
140
160
-195

808
335
553
192
58
172
211
-225

844
366
565
218
61
172
213
-164

886
385
550
238
73
174
216
-161

968
426
617
254
84
189
243
-199

1,024
452
569
273
104
211
270
-272

1,109
539
623
304
150
209
308
-296

1,177
742
637
317
235
211
262
-305

Total general governmenL ___ _____ ____________________ _______

1,173

1,334

1,543

1,703

1,841

2, 103

2,276

2,360

2,584

2,632

2,948

-3,275
-

nterest _______________________________________________________________________

7,070

8,299

8,108

8,321

9,215

9,810

10,357

11,285

12,588

13,744

15,171

15,958

100
A1I0wances for pay increase and contingencies ________________________
--------- --------- --------- --------- --------- ..... -------- --------- --------- -4,570 -5,105
Undistributed intragovernmental transactions _________________________ ---------2,238 -2,296 -2,495 -2,558 -2,674 -2,939 -3,175 -3,431 -4,009 --------Total outlays ________________________________________________ 92, 111
97,802 106,830 111,314 118,585 118,431 134,654 158,352 178,862 183,701
92,230

3,150
-5,745

1959
Health and welfare:
Income security payments:
Retirement and social insurance 1________________________________
Pu bIic we Ifare ________________________________________________
Health services and research:
Health services (m'ainly Medicare and medical assistance) 13 __________
Development of health resources and prevention and control of
health problems _____________________________________________
Social and individual services:
Food and nutrition ____________________________________________
Vocational rehabilitation and other 13 ____________________________
Deductions for offsetting receipts 2____________________________
Total health and welfare __ ___ ______________________________

veterans
benefits and services:
Service-connected compensation _________ _________________________

1960
---

1961

14,773
1,971

15,596
2,063

18,458
2,149

191

233

462

1962

----

Entries net of offsetting receipts.
2 Excludes offsetting receipts which have been distributed by subfunction above,
: Outlays for child welfare are included in health services 1959-1967 and in vocational rehabilitation and other 1968-1970.

*Less than $500 thousand.

-195,272
-

BUDGET AUTHORITY AND OUTLAYS BY AGENCY (in millions of dollars)
,

Outlays

Budget authority

Department or other unit

1968

.•.

actual

1969

estimate

1970

estimate

1968

actual

1969

estimate

1970

estimate

legislative Branch ___________________________
272
The Judiciary ________________________________
93
Executive Office of the President- ______________
31
Funds appropriated to the PresidenL ___________
4,542
Agricu Itu re ______________________ .,. ___________
7,829
Commerce __________________________________
970
Defense-Military ______ .,. _____________________
76,429
Defense-Civi 1________ ._______________________
1,353
Health, Education, and Welfare _________ : ___ : __
44,688
Housing and Urban DevelopmenL ______________
5,786
Interior _____________________________________
415
Justice ______________________________________
437
labor _______________________________________
4,452
Post Office __________________________________
1,192
State ____________________________ __________
394
Transportation ____ . __________________________
6,499
Treasury ____________________________________
14,658
Atomic Energy Commission ____________________
2,508
General Services Administration _______________
381
National Aeronautics and Space Administration __
4,587
Veterans Administration ______________________
7,801
Other independent agencies ___________________
9,900
Allowances for:
Civilian and military pay increase ____________
Contingencies ______________________________ -----------------_.Undistributed intragovernmental transactions:
Government
contributions for employee retirement ___________________________________
-1,896
Interest received by trust funds ______________ -2,674
~

Total budget authority and outlays _______

302
104
32
4,666
8,338
978
76,495
1,267
51,837
3,243
494
539
4,511
1,036
422
7,431
16,257
2, 571 ~
319
3,992
7,489
7,253

---------150

322
116
34
5,749
7,703
1,061
80,238
1,206
59,024
3,007
483
825
5,079
750;<
431
7,953
16,974
2,438
287
3,757
7,911
7,215

255
91
28
4,913
7,308
807
77,373
1,300
40,576
4,140
264
430
3,271 .
1,08Q.,
424
5,732
14,655
2,466
413
4,721
6,858
6,328

2,800 -.- -------500 ----------

........

298
102
33
5,154
7,650
872
77,790
1,247
46,259
2,017
541
516
3,688 ?
929
434
6,011
16,272
2,451
453
4,247
7,719
4,018

303
114
34
5,092
7,024
1,134
78,471
1,259
51,779
2,726
569
714
3,902
552
434
6,991
16,971
2,571
'402
3,947
7,699
5,178

-------100

2,800
350

-2,105
-3,000

-2,187
-3,558

-1,896
-2,674

-2,105
-3,000

-2,187
- .3,558

190,649

194,620

210,116

178,862

183,701

195,272

134,444

132,645

143,867

83,542

87,000

93,796

25,560
49,071
32,243

27,436
50,624
31,949

29,509
50,543
35,344

MEMORANDUM
Portion available through current action by Congress ______._______________________________
Portion
available without current
action by Congress _____________________
________________
Outlays from obligated balances _______________
Outlays from unobligated balances _____________
Deductions for offsetting receipts:
I nterfund and intragovernmental transactions __
Proprietary recei pts from the pu blic __________
Total budget authority and outlays _______

67,758

75,284
80,168
-_
.
_
-------------------------

---------- ---------- ----------6,881
-4,674

-8,719
-4,590

-9,113
-4,810

-6,881
-4,674

-8,719
-4,590

-9,113
-4,810

190,649

194,620

210,116

178,862

183,701

195,272

OUTLAYS AND RECEIPTS OF TRUST FUNDS (in -miJIions of dollars)
Receipts

Outlays
Trust fund

1968

actual

1969

estimate

1970

1968

estimate

1969

actual

1970

estimate

---Federal old-age and survivors insurance _________
Federal disability insurance ___________________
Health insu rance _____________________________
Unem ployment insurance _____________________
Railroad retirement accounts __________________
Federal employees retirement funds ____________
Highway trust fu nd ___________________________
Advances, foreign military sales ________________
Veterans life insurance _______________________
Other trust fu nds (nonrevolving) _______ ________
Trust revolvi ng fu nds ________________ _________
Interfund transactions _________________ _______
Proprietary receipts from the public ____________

21,510
2, 163
5,332
2,632
1,338
2,631
4,171
1,015
457
306
2,085
-459
-1,653

24,641
2,605
6,222
2,959
1, 492
1,767
3,958
1,040
705
357
-528
-497
-1,684

27,138
2,902
6,851
3,097
1,587
2,590
4,865
930
747
277
-426
-519
-1,608

Total _________________________________

41,529

43,037

48,431

23,641
2,800
5,256
3,788
1,476
3,449
4,427
961
741
298

27,842
32,385
3,759
4,358
7,278
7,331
3,772
4,092
1,567
1,637
4,006
3,791
4,530
5,036
952
978
748
759
263
306
----:::459 - ----------497 ---------519
-1,653
-1,684
-1,608
44,724

52,390

58,693

SUMMARY OF FULL-TIME PERMANENT EMPLOYMENT IN THE
EXECUTIVE BRANCH
As of June

Increase,

1970

Agency

1968

1969

actual
Department of Defense, Military and military assistance 1___________ 1,256,068
Post Office DepartmenL ______________________________________ __
549,623

over

1970

estimate

1,235,648
564,501

1,235,000
575,700

1969
-648
11,199

SubtotaI 1_________________________ ___________ ___________

1,805,691

I
I 1,800,149

Department of Agriculture ______________________________________
Department of Commerce _______________________________________
Department of Defense, CiviL _________________ ______ ________ ____
Department of Health, Edu:ation, and Welfare ____________________
Department or Housing arid Urban DevelopmenL __________________
Department of the I nterioL _____________________________________
Department of Justice __________________________________________
Department of LaboL __________________________________________
Department of State ___________________________________________
Department of Transportation ___________________________________
Treasury Department __________________________________________
Atomic Energy Commission ________________ ________ ___________ __
General Services Administration _________________________________
National Aeronautics and Space Administration ___________________
Veterans Administration __ ___ _____________ ______ ___ _____________
Other agencies:
Agency for International Development. __________________ __ ____
Tenn.essee Valley Authority ___________________________________
The Panama CanaL __________________________________________
United States Information Agency _______ _______ _______________
Miscellaneous Agencies 2_____________________________________

85,397
26,197
32,062
106,834
14,983
61,186
34,424
9,786
25,785
58,027
82,132
7,169
37,454
32,471
151,023

83,000
25,350
31,310
102,581
14,772
59,580
35,600
9,564
25,068
60,405
80,200
7,037
36,850
31,745
147,634

86,400
26,000
31,364
106,700
16,800
60,900
36,600
9, 700
24,600
65,400
85,100
7,300
38,100
31,500
152,300

3,400
650
54
4,119
2,028
1,320
1,000
136
-468
4,995
4,900
263
1,250
-245
4,666

17,569
12,009
14,940
11,283
46,649

16,600
12,436
14, 782
10,983
45,065

15,900
12,600
15,200
11,000
46,844

-700
164
418
17
1,779

Subtotal ____________ _______________ _____________________

867,380

850,562

Allowance for contingencies ____________________________________ .

1,810,700

10,551

880,308

-----------1----------- 1

2,500

2,693,508

42, 797

TotaI 1______________________________ __ __ ______________ -- 2,673,071

2,650, 711

29,746

1 Each year's total includes 42,000 civilian technicians, formerly employed by the States to perform operations and
maintenance support services for the Army and Air Force National Guard who converted to Federal employment status as
of Jan. 1, 1969.
2 Excludes member employees of the Soldiers' Home.

FEDERAL FINANCES AND THE GROSS NATIONAL PRODUCT, 1954-1969 (dollar amounts in billions)
Budget outlays (expenditures and net lending)

Federal debt, end of year

Budget receipts
Fiscal year

Gross
national
product

Total

Budget expenditures
(excludes net lending)

Total

Held by the

Amount

Percent
of GNP

Amount

Percent
of GNP

.Amount

Percent
of GNP

Amount

Percent
of GNP

Amount
'.

954 __________________________________________________
1955 __________________________________________________
1

956 __________________________________________________

1957__________________________________________________
1958 __________________________________________________
1959 __________________________________________________
1960 __________________________________________________
1

961__________________________________________________

1962 __________________________________________________

1963 _________________________________________ _________

1964 __________________________________________________
1965 __________________________________________________

966 __________________________________________________

1967 __________________________________________________

1968 __________________________________________________
1
1969 (estimate) ________________________________________
1

Not yet available.

~ublic

Percent
of GNP

$362.1
378. 6

$69. 9
65.5

19. 3
17.3

$71. 1
6B.5

19.6
18~ 1

(1)
(1)

$270.8
274.4

74.8
72.5

$224.5
226.6

62.0
59.9

409. 4
431. 3
440. 3
469.1
495.2

74. 6
80. 0
79. 6
79. 2
92. 5

18.2
1B.5
18. 1
16.9
lB. 7

70.5
76. 7
B2. 6
92.1
92. 2

17.2
17. 8
IB. 8
19.6
IB.6

(1)
(1)

66.6
63. 1
63. 5
61. 3
5B.7

222.2
219. 4
226.3
235.0
237.1

54.3
50.9
51. 4
50. 1
47.9

506.5
542. 1
573.4
612. 2
654. 2

94. 4
99. 7
106. 6
112. 7
116. 8

18.6
1B. 4
18.6
IB.4
17. 9

97. 8
106.8
111.3
11B.6
118. 4

238.6
248.3
254.4
257.5
261. 6

47. 1
45.8
44.4
42. 1
40.0

720. 7
766. 5
B22. 6
B93.0

130. 9
149.6
153. 7
186.1 I
,

IB. 2
19.5
lB. 7
20. 8

134. 7
158. 4
178.9
IB3. 7

264.6
267.5
290. 6
276.6

36. 7
34.9
35.3
31. 0

$81. 0
89.5
90. 3

IB.4
19. 1
18.2

272. 7
272.3
279.6
2B7.7
290.B

19.3
19.7
19.4
19.4
lB. 1

96.6
104. 5
111.5
lIB. 0
117. 2

19. 1
19. 3
19.4
19.3
17.9

292.9
303.2
310.B
316. 7
323. 1

57.B
55.9
54.2
51. 7
49.4

18.7
20. 7
21. 7
20.6

130. 8
153.3
172. B
1B2.3

IB.2
20.0
21. 0
20.4

329.4
341. 3
369.7
365.2

45. 7
44. 5
44.9
40. 9

BUDGET RECEIPTS AND OUTLAYS, 1789-1970 (in millions of dollars)
Fiscal year

Receipts Outlays

Surplus
or deficit (-)

Fiscal year

Receipts Outlays

Surplus
or deficit (-)

ADMINISTRATIVE BUDGET

1789-1849 _________________ 1,160
1850-1900 _________________ 14,462
1901 __________ ___________
588
1902 ____________________ __
562
1903 ______________________
562
1904 _______________ ___ ____
541
1905 _______________ ____ ___
544
1906 ______ ___ ________ _____
595
1907 ______________________
666
1908 ______________________
602
1909 ______________________
604
1910 ______________________
676
1911 ______________________
702
1912 ______________________
693
1913 ______________________
714
1914 ______________________
725
1915 ______________________
683
1916 ______________________
762
1917 ______________________ 1,100
1918 ______________________
1919 ______________________ 3,630
5,085
1920 ______________________ 6,649
1921 ______________________ 5,567
1922 ______________________ 4,021
1923 ______________________ 3,849
1924 ______________________ 3,853
1925 ______________________ ' 3,598
1926 ______________________ 3,753
1927 ______________________
1928 ______________________ 3,992
1929 ______________________ 3,872
1930 ______________________ 3,861
4,058
1931 ______________________
1932 ______________________ 3,116
1,924
1933 ______________________ 1,997
1934 ______________________ 3,015
1935 ______________________ 3,706
1936 ___________ ___________ 3,997
~

1,090
15,453

+70
-991

1937 ______________________
1938 __ __________ _________
1939 ______________________

525
485
517
584
567

+63
+77
+45
-43
-23

1940 ______________________

6,879

9,589

-2,710

570
579
659
694
694

+25
+87
-57
-89
-18

1941 ______________________
1942 ______________________
1943 _____________________ _
1944 ___________ ___________
1945 ______________________

9,202
15, 104
25,097
47,818
50, 162

13,980
34,500
78,909
93,956
95,184

-4,778
-19 , :396
-53,812
-46,138
-45,022

691
690
715
725
746

+11
+3

1946 __________________ ____
1947 ______________________
1948 ___ ___________________
1949 ______________________
1950 ______________________

43,537
43,531
45,357
41,576
40,940

61,738 -18,201
36,931 +6,600
36,493 +8,864
40,570 +1,006
43,147 -2,207

*
*

-63

713
+48
1,954
-853
12,662 -9,032
18,448 -13,363
6,357
+291
5,058
3,285
3,137
2,890
2,881

+509
+736
+713
+963
+717

2,888
2,837
2,933
3, 127
3,320

+865
+1,155
+939
+734
+738

3,577
4,659
4,598
6, 645
6, 497
8, 422

-462
-2,735
-2,602
-3,630
-2 , 791
-4,425

4,956
5,588
4,979

7,733
6,765
8,841

-2,777
-1,177
-3,862

CONSOLIDATED CASH STATEMENT

1951 ______________________ 53,390
1952 ______________________ 68,011
1953 ______________________ 71,495

",0

45,797
67 ,962
76,769

+7,593
+49
-5,274

71,138
68,503

-1,218
-3,041

UNIFIED BUDGET

1954 ______________________
1955 ______________________ 69,920
65,462
1956 ______________________ 74,581
1957 ______________________
1958 _______________ ____ ___ 79,958
79,621
1959 ______________________ 79,179
1960 ______________________ 92,470
1961 ______________________ 94,378
1962 _____ _____ ____________ 99,657
1963 _______ _______________ 106,572
1964 ______________________ 112,669
1965 ______________________ 116,813
1966 ______________________
1967 _____ ____ ___ __________ 130,864
1968 ___________ ___________ 149,562
153,676
1969 estimate ______________ 186,092
1970 estimate __ ------------ 198,686

70,461 +4,121
76,748 +3,210
82,575 -2,954
92, III -12,932
92,230
+ 240
97,802 ~

106,830
111,314
118,585
118,431
.

-3,424
-7,174
-4,742
-5,916
-1,618

134,654 -3,790
158,.352 -8,790
178,862 -25,187
183,701 +2,391
195,272 +3,414

*Less than $500 thousand.
Notes.-Certain interfund transactions are excluded from receipts and outlays starting in 1932. For years prior to 1932
the amounts of such transactions are not significant.
Refunds of receipts are excluded from receipts and outlays starting in 1913; comparable data are not available for prior
years.

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D. C. 20402 - Price 45 cents

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JANUARY 1,1969

The following additional budget documents can be purchased from the
Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402:
1. The Budget of the United States Government, 1970. Contains most
of the facts, figures, and analyses that general users of the budget would
normally desire or need.
2. The Budget of the United States Government, 1970.-Appendix. Contains the text of appropriation language, schedules, and narrative statements
for individual appropriations and funds.
3. SPecial Analyses, Budget of the United States, 1970. Contains special
tabulations and analyses of budgetary data for those interested in selected
aspects of the total Federal program.

Full text of Budget in Brief : Fiscal Year 1970

FRASER