It will be noted that Statement No. 2 presents in three parallel columns the appropriation estimates for 1936 and the actual appropriations for 1935 and 1934. Adjacent to these columns are three additional columns exhibiting the estimated expenditures for 1936 and 1935 and the actual expenditures for 1934. To avoid confusion in comparing the figures in these six columns, one should have some knowledge of the basis upon which such figures are prepared.

Taking up the first three columns of figures, the 1934 and the 1935 columns carry the appropriations which have already been made by the Congress for those fiscal years. The 1936 column presents the amounts for the various organization units (i. e., departments, bureaus, establishments, and agencies) and objects which the President has recommended to the Congress for appropriation or authorization at its 1935 session. These amounts are not likely to be the same as those which will actually be expended during the fiscal year 1936, the latter amounts being shown in the column of estimated expenditures for that year, as explained below.

$62,000.00

The appropriations, it should be observed, are of two general types-annual and permanent. The annual appropriations, ordinarily found in the departmental supply bills, are voted each year by the Congress. They are usually definite or specific as to amounts. They may be obligated only during the year to which they relate, their unexpended balances remaining available on the books for payment of obligations during 2 additional years before being closed into the so-called "surplus fund" of the Treasury. The permanent appropriations are automatically renewed each fiscal year over a period of time

15,000.00 68,040,000.00

68,055,000.00

2,000,000.00

1,000.00 4, 182, 490.00 785,000.00

194, 500.00

20,000.00

3,068, 750.00 32, 141, 177.94

110,509, 917. 94

$70,000.00

531,000.00 70, 890,000.00

71, 421,000.00

1,676, 545.00 1,000.00 5,704, 840.00 800,000.00

194,500.00

20,000.00

3,607,000.00 27,716, 259. 17

111, 211, 144. 17

Estimated, 1936 Estimated, 1935

$70,000

41, 811, 000

72, 273, 000

114, 084, 000

2, 000, 000 110,500 5,849, 500

850,000

1,737,500

260,000

15, 530, 000 2,541, 600 36, 134, 822

EXPENDITURES

179, 167, 922

$62,000.00

41, 020, 500 72, 215, 000

113, 235, 500

2, 000, 000

3,752, 150 786,000

217, 500

250,000 15, 518, 300 5,789, 700 36, 061, 622

177, 672, 772

Actual, 1934

$114, 408.06

546, 003. 84 116, 986, 304.6

117,532,308, 53

-4, 145, 193. 35 -83.677.41 1,216, 923. 63 494, 593. 28 -476,460.54 159, 198.02

51.00 74,261.60 1,172,450. 18 2,001, 227.04 30, 689, 804. 67 155, 963.08

148,905, 857.79 -10, 230, 318. 1*

138, 675, 539.61

by virtue of permanent legislation, without annual action by the Congress. Such appropriations may be either specific or indefinite as to amounts. An example of the latter is the indefinite permanent appropriation to cover the interest on the national debt. This type of appropriation, while sometimes difficult to ascertain as to amount, does not preclude an estimated figure for the Budget. The number of the permanent appropriations has been greatly reduced, effective July 1, 1935, by the Permanent Appropriation Repeal Act of June 26, 1934 Sometimes the Congress makes appropriations which are available until expended, or until the object for which they are made is accomplished. These appropriations are without a definite time limit, and may, therefore, be called "no-year" appropriations. They are generally for the construction of public-works projects.

Turning to the three columns under the caption "expenditures", the column for 1934 shows the actual expenditure figures for that fiscal year. These figures are usually on a checks-issued basis and are adjusted at ap propriate subtotals or totals to the cash basis (checks-paid basis) as shown on the daily Treasury statement. The totals, therefore, are on an actual cash basis. The column for 1935 shows the estimated expenditures for that fiscal year on a cash basis. The fact that this column may show estimated expenditures which are larger than the appropriations made for 1935 is due to the carryover of prior obligations for payment in this fiscal year. Likewise, the same condition holds true for the estimated expenditures in the column for the fiscal year 1936. The expenditure figures contained in these three columns are the ones which are carried in totals to the General Budget

Summary and supporting schedules. Hence the Budget. is, in effect, on a cash basis with respect to expenditures, and, for that matter, receipts too.

The italicized items appearing in Statement No. 2 represent emergency appropriations and/or expenditures under the National Industrial Recovery program. The totals of these various items are comparable with the summary figures presented on the last page of the daily Treasury statement, under the caption "Funds appropriated and allocated to emergency organizations, expenditures, therefrom, and unexpended balances", with the exception of the items for the Agricultural Adjustment Administration, refunds of processing taxes, and Subscriptions to stock of Federal land banks. The emergency (italicized) items from Statement No. 2 are summarized, including the exceptions just noted, and presented in the General Budget Summary under the expenditure group called "Recovery and relief." This group is carried in detail in Supporting Schedule No. 3. ESTIMATED EXPENDITURES FOR THE FISCAL Year 1936

The estimated expenditures of the legislative branch, the judiciary, and executive office for the fiscal year 1936 are only slightly higher than those for 1935. These expenditures amount in the aggregate to $36,600.000, or about $4,000,000 more than the actual expenditures in

1934.

For the civil departments and agencies of the Government, the estimated expenditures for 1936, as shown on Supporting Schedule No. 2, total $788,000,000, inclusive of $200,000,000 for proposed public works. The net amount of $588,000,000 is principally for the operation and maintenance of these departments and agencies. This sum is approximately $22,000,000 higher than the estimated expenditures for 1935, which in turn are about $8.000.000 less than the actual expenditures for 1934. The latter expenditures amounted in the aggregate to $574.000.000.

Taking up the individual departments, the estimated expenditures of the Department of Agriculture are placed at $65,000,000 for 1936, an increase of about $1,000,000 over the 1935 requirements. But the latter requirements are some $6,000,000 above the actual expenditures for 1934. The expenditures for the Department of Commerce for 1936 are estimated at $27,000,000, which is about $4,000,000 above the 1935 estimate and approximately $9,000,000 above the actual expenditures for 1934. The estimated expenditures for the Department of the Interior are put at $67,000,000 for 1936, an increase of $14.000,000 over the 1935 estimate and an additional $1,000,000 over the actual expenditures for 1934. This represents the largest increase made for any of the civil departments of the Government. The details of this increase may be ascertained by examining Statement No. 2. For the Department of Justice, excluding the judiciary, the expenditures for 1936 are estimated at $18,000,000. This amount is approximately $1,000,000 above the actual expenditures for 1934 and slightly more than that amount above the estimated expenditures for 1935. The Department of Labor is estimated to require $16,000,000 for 1936, which is about $1.000.000 above the estimated expenditures for 1935. But the 1935 figure is more than $1,000,000 above the actual expenditures for 1934. The estimated expenditures for the Department of State for 1936 total $14,000,000, a decrease of about $1,000,000

64660-34

under the 1935 estimated expenditures, but an increase of some $2.000.000 over the actual expenditures for 1934.

The Treasury Department is estimated to expend 137,000,000 in 1936, exclusive of retirements and interest on the national debt and tax refunds. This amount represents a decrease of about $8,000,000 under the estimated expenditures for 1935, and an additional decrease of approximately $40,000,000 under the actual expenditures for 1934. The War Department, for its nonmilitary activities exclusive of the Panama Canal, is estimated to require $63,000,000 for 1936. This expenditure is about $12,000,000 less than that estimated for 1935, which in turn is approximately $7,000,000 less than the actual expenditure for 1934. The expenditure requirements of the Panama Canal are placed at $11,000,000 for 1936, or an annual increase over the 2 previous years of about a million dollars. The regular independent offices and establishments of the Government are estimated to expend for 1936 about $43,000,000. This amount is nearly $2,000,000 more than the previous year's estimate, and approximately the same as the actual expenditure for 1934. The Government's share of the retirement funds for the civil, Canal Zone, and Foreign Service is placed at slightly more than $40,000,000 for 1936, representing an increase over each of the 2 preceding years of about $20,000,000. The postal deficiency for 1936 is estimated at $80,000,000, an increase over the actual deficiency for 1934 of about $16,000,000 (see Annexed Budget of the Post Office Department). The Federal contribution to the District of Columbia for 1936 remains at $5,700,000, as in 1934 and 1935 (see Annexed Budget of the District of Columbia).

For national defense, an expenditure of $792,000,000 is estimated for 1936, as shown on Supporting Schedule No. 2. This amount represents an increase of $180,000,000 over the estimated expenditure for 1935, which in turn is $133,000,000 more than the actual expenditure for 1934. Of this increase, the Navy Department receives the major part. Its estimated expenditures for 1936 are put at $477,000,000, an increase of $134,000,000 over the previous year's estimate and an additional increase of $69.000.000 over the actual expenditure for 1934. The expenditures of the War Department for 1936 are estimated at $315,000,000. This amount is $45,000,000 more than the estimated expenditures for 1935, and an additional $65,000,000 more than the actual expenditures for 1934.

Veterans' pensions and benefits are estimated to require for 1936 nearly $705,000,000. This amount is approximately $160,000,000 more than the estimated figure for 1935. The latter figure, however, will probably be revised upward by a supplemental amount before the end of the fiscal year.

The charges on the national debt approximate $1,511,000,000 for 1936, as against $1,407,000,000 for 1935, and $1.116,000,000 for 1934. The interest for 1936 will amount to $875,000,000, while retirements will reach $636,000,000 for that fiscal year.

Refunds for customs and internal-revenue taxes, excluding processing taxes, are estimated to require $65,000,000 for 1936. This amount is about $3,000,000 less than the estimate for 1935, but some $2,000,000 more than the actual expenditure for 1934.

The foregoing expenditures, totaling for 1936 approximately $3.898,000,000, may be regarded as the regular requirements of the Government. These expenditures