HUGE DEFICIT

Wairarapa Times-Age, 14 July 1938, Page 7

HUGE DEFICIT

THE AMERICAN BUDGET ESTIMATES MUCH EXCEEDED. SOME EFFECTS OF BUSINESS RECESSION. By Telegraph—Press Association. Copyright. WASHINGTON, July 13. President Roosevelt today issued the revised figures for the United States Budget for the fiscal year 1938-39. A large increase in expenditure is shown compared with the President’s preliminary estimate delivered to Congress on January 5 last.

Expenditure for the current fiscal year will be 8,985,000,000 dollars. Due to the business recession and public relief, receipts are only 5,000,000,000 dollars. A net deficit of 3,984,000,000 dollars, also attributed to the business recession, is reported. The gross public debt, said the President, now stands at the record figure of 40,650,000,000 dollars. In his Budget message to Congress on January 5, President Roosevelt estimated that expenditures for the fiscal year 1938-39 would amount to 6,869,000,000 dollars, representing a reduction of 539,000,000 dollars on 1937-38, but he expressed a fear that u.e necessity for increased outlays on national defence or the lack of improvement in the economic situation might increase expenditures. The, total revenue he estimated at 5,919,0'00,000 dollars, 1 , representing a diminution of 401,000,000 dollars, compared with 1937-38, due to the business recession. The estimated deficit was thus 950,000,000 dollars, and the gross debt 38,528,000,000 dollars.