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1949 Washington Report 1 (1949)

handle is hein.tera/wingtore0002 and id is 1 raw text is: 920 Washington Building Washington 5, D. C. ECONOM..Y DRIVE B-UU IN SFNATE Foreign Programs Also Considered Currently before Congress is a proposal to save about . ,-l billion through an outright I per cent reduction in the regrular appropri ation bills for fiscal 1950. How Congress acts on this surgestion Atill determine largely the financial course to be followed by the Federal government in the fiscal year beginnin July 1. Savings implicit in this proposal could mean the differenc. between a balanced budget and an unbalanced one; bet-veen the imposition of new or hig-her taxe-s and the maintenance of preeont tax rates. The potential $1 billion savings iw!ould result from appli- cation of the 5 per cent reduction to the $32.5 billion in new appropristions for fiscal 1950, contained in the January budget message. The $32.5 billion covers both existing and proposed programs, but excludes af propriations to liquidate prior con- tract authority and permanent appropriations. Additional savings are possible if the formula is applied to other than the regular appropriation bills. Senator Vandenberg of iaichigan, minority leader on foreign policy, has said that if the reduction is apnlied to regular appropriations measures, he will support its adoption in dealing with funds for foreign recovery programs. Th~e imminence of budget deficits, unless something is done, was incicated recently by Senalor Fyrd of Virginia. He pre- dicted that the Federal government will have deficits of more than 4$O0 million in the current fiscal year, $3.b billion in fiscal 1950, and $6.5 billion in fiscal 1951. NOTE The contents of this report ore not for publicotor or reproduction. No. 1