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.