Excess of expenditures 28,620 4,347

The current fiscal year, 1946, is a year of transition.  When the year opened, in July 1945, we were still fighting a major war, and Federal expenditures were running at an annual rate of about 100 billion dollars.  By June 1946 that rate will be more than cut in half.  The Budget total for the current fiscal year is now estimated at 67.2 billion dollars, of which more than two-thirds provides for war and war liquidation.  Since net receipts are estimated at 38.6 billion dollars, there will be an excess of expenditures of 28.6 billion dollars for the current fiscal year.

For all programs discussed in this Message I estimate the total of Budget appropriations and authorizations (including reappropriations and permanent appropriations) at 30,982 million dollars for the fiscal year 1947.  Of this amount, present permanent appropriations are expected to provide 5,755 million dollars, principally for interest.  This leaves 24,224 million dollars to be made available through new appropriations, exclusive of appropriations to liquidate contract authorizations; 900 million dollars in new contract authorizations; and 103 million dollars through the reappropriation of unliquidated balances of previous appropriations.  The appropriations needed to liquidate contract authorizations are estimated at 1,113 million dollars.

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.