Statement on Government Expenditures.

THE PRESIDENT said:

"The Cabinet meeting today was largely devoted to a consideration of the financial situation of the Government as the result of the appropriations made by the last Congress. The budget for the present fiscal year, beginning July 1, has been increased by about $209 million above the actual expenditures for the last fiscal year. The largest increases are for the speeding up of buildings, inland waterways, and public works generally, in order to assist in unemployment together with the increased relief of veterans.

"There has been some confusion as to the amount of increased expenditures imposed by the last Congress by the mistaken inclusion of authorized programs which extend over many years, such as public buildings, roads, and rivers and harbors, and only in a small part fall on each annual budget. Also some comparisons of Federal expenditures include the Post Office outlays. It has always been the practice to include only the Post Office deficit. Otherwise, real comparisons would be destroyed by the variations in Post Office operations. Including the estimated postal deficit the total budget estimates of expenditures for the present fiscal year are $4,203,254,457, as compared with actual expenditures for the last fiscal year of $3,994,152,487, or an increase of $209,101,970, being an increase of 5 percent.

"The discussion today was directed to measures for reduction of expenditures below these estimates with view to meeting possible reduction of revenue arising from slack times. The Cabinet members and heads of independent agencies have undertaken a searching inquiry into every branch of the Government as to methods by which economies may be brought about for the present fiscal year without interfering in the program of aid to unemployment. I am confident that we will find measures for very considerable reductions of actual outlay below the amounts appropriated. What the amount may be cannot be determined until we have completed our investigation."