The Budget: Almost at Twelve

A national budget of $100 billion has that awesome, twelve-figure sound that frightens politicians, who know it will frighten taxpayers. But next fiscal year the U.S. will nudge right up to that scary size. The probable budget for 1963-64: $99 billion, the highest in history.

In line with his statement before the Economic Club of New York two weeks ago, President Kennedy plans to hold spending at the current $937 billion—except for increases in defense, space, and interest on the national debt. Defense expenditures are expected to increase by $2.5 billion or $3 billion, to about $51 billion, the space program by $2 billion, and yearly interest on the debt by $700 million. Within the old budget, some allocations will be juggled. The Administration expects new postal rates to save $750 million—money that can be spent for increased Health, Education and Welfare and public works programs.