In the Budget for the year ahead only over-all estimates are included at this time for the major war agencies and for net outlays of Government corporations.  Detailed recommendations will be transmitted in the spring for the war agencies; and the business-type budgets of Government corporations will likewise be transmitted in accordance with the recently adopted Government Corporation Control Act.

Similarly, only over-all estimates are provided for new programs recommended in this Message; detailed recommendations will be transmitted after authorizing legislation has been enacted.  It should be recognized that many of the estimates for new programs recommended in this Message are initial year figures.  These figures will be affected by the date the legislation is enacted and by the time needed for getting a program under way.  New programs, such as that for a national research agency, will require larger amounts in later years.  The estimates exclude major elements of the proposed national health program since the greater part of these will be covered by expenditures from trust funds.

The Budget total includes expenditures for capital outlay as well as for current operations.  An estimated 1,740 million dollars will be expended in the fiscal year 1947 for direct Federal public works and for loans and grants for public works.

The economic impact Of the liquidation

OF THE WAR PROGRAM

Government programs are of such importance in the development of production and employment opportunities—­domestic and international—­that it has become essential to formulate and consider the Federal Budget in the light of the Nation’s budget as a whole.  The relationship between the receipts, expenditures, and savings of consumers, business, and government is shown in the accompanying table.

Considering the whole Nation, total expenditures must equal the total receipts, because what any individual or group spends becomes receipts of other individuals or groups.  Such equality can be achieved on either a high level of incomes or on a low or depression level of incomes.

Tremendous orders for munitions during the war shifted production and employment into high gear.  Total goods produced and services rendered for private as well as for Government purposes—­the Nation’s budget-reached about 200 billion dollars in the calendar year 1944.  Federal, State, and local government expenditures represented half of this total.

Corresponding estimates for the past 3 months depict the national economy in the process of demobilization and reconversion.

The wartime annual rate of Federal expenditures has been reduced by 32 billion dollars, while the Nation’s budget total has dropped only half as much.  The drop in total value of production and services has been less drastic because increasing private activities have absorbed in large measure the manpower and materials released from war production and war services.