Seventh: To provide for this extra effort for security, we must apply stern
tests of priority to other expenditures, both military and civilian. This
extra effort involves, most immediately, the need for a supplemental
defense appropriation of $1.3 billion for fiscal year 1958.
In the 1959 budget, increased expenditures for missiles, nuclear ships,
atomic energy, research and development, science and education, a special
contingency fund to deal with possible new technological discoveries, and
increases in pay and incentives to obtain and retain competent manpower add
up to a total increase over the comparable figures in the 1957 budget of
about $4 billion.
I believe that, in spite of these necessary increases, we should strive to
finance the 1959 security effort out of expected revenues. While we now
believe that expected revenues and expenditures will roughly balance, our
real purpose will be to achieve adequate security, but always with the
utmost regard for efficiency and careful management.
This purpose will require the cooperation of Congress in making careful
analysis of estimates presented, reducing expenditure on less essential
military programs and installations, postponing some new civilian programs,
transferring some to the states, and curtailing or eliminating others.
Such related matters as the national debt ceiling and tax revenues will be
dealt with in later messages.