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1 Controllability of Fiscal 1968 Budget Expenditures 1 (1967)

handle is hein.tera/confisgeex0001 and id is 1 raw text is: 1937w- SPECIAL REPORT CONTROLLABILITY OF FISCAL 1968 BUDGET EXPENDITURES Analysis Rebuts Claim that 1968 Budget is Relatively Uncontrollable The budget message of the President for the fiscal year 1968, trans- mitted to Congress in January, contends that major cuts cannot be made in the estimated $135.0 billion of Administrative budget expenditures without serious impairment to vital national objectives. In support of this con- tention the message identifies various uncontrollable areas to show that only $14.9 billion -- or 11 percent of the total -- may be considered as controllable. And it goes on to suggest that even this relatively controllable area includes certain indispensable programs. On the other hand, sources within and outside the Congress have been calling for substantial reductions, of from $3 billion to $6 billion, in expenditures for fiscal 1968. Demands for spending reductions of this magnitude obviously run counter to the contention of the budget message that almost 90 percent of these expenditures are beyond effective control. Claims as to the controllability or uncontrollability of the budget expenditures, of course, vary with the assumptions on which they are based. The budget message, for example, marks down the entire expenditure for national defense ($75.5 billion) as uncontrollable. However, While Vietnam requirements obviously introduce an element of uncontrollability, the great emphasis placed upon the Defense Depart.ent's cost reduction program suggests that other areas of defense spending are susceptible to control. In recent testimony before the Committee on Appropriations of the House of Representatives, Budget Director Charles L. Schultze, while presenting a breakdown supporting the relatively uncontrollable viewpoint set forth in the budget message, also acknowledged that there is no such thing as an absolutely uncontrollable expenditure. This Special Report presents an analysis of the projected fiscal 1968 administrative budget expenditures, by factors which influence annual Con- gressional control, in an effort to provide some information on possibilities for budget reductions. While it is impossible, lacking detailed information in some areas, to be precise in arriving at such estimates, this analysis suggests that as much as $55 billion of estimated experditures for fiscal 1968, or roughly 40 percent of the total, may be classified as relatively controllable -- i. e., subject to possible reductions by the Congress (or the Executive).

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