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Show FEDERAL BUDGET NEARSBALANCE WASHLGTONJuly27-UNS) The federal government not only will balance it budget in the next year, but in 1939 will begin to cut down the huge national debt of 134,000.000.000, Representative Clarence Clar-ence J. Cannon D Mo.), acting chairman of the houae appropriation! appropria-tion! committee, predicted today. The administration'! plane, he (aid, will make unnecessary a huge new tax bill next year, as predicted by critics of the administration's spending policies. Plans Summarised Presenting a birdseye picture of the administration's present and future fu-ture plans, the acting head of the committee which originates all appropriations ap-propriations bills said: 1. Government revenues since April 5 have exceeded estimate and there Is every indication that they will continue to rise. I. A flat ie per cent cat In appropriations ap-propriations was unnecessary, be-eause be-eause It was found that President Roosevelt had wide authority to impound funds. S. There is every Indication that congress next winter still further can cut relief appropriations. . A layman's balance of tho budget will be achieved in the fiscal fis-cal year which began July 1, even though cent of governmentwlll be around $7,000,000,000. Revenues Increase "Early in April it was necessary to revise estimates of revenue because be-cause the tax receipts were disappointing," dis-appointing," said Cannon, "but since that time the trend has been the opposite. Revenues hsve increased in-creased beyond expectations, beyond be-yond the estimates. "We will not need a general increase in-crease in taxation next year. All we need to do is to close loopholes and get the taxes w should get under present law. "Expenditures are being and will be reduced. For example, we spent 12.200,000.000 on relief last year. This year we have appropriated Jl.500.000,000. We expect to be able to reduce relief appropriations still farther next year and also cut down emergency agencies. Balance Forecast "We can and should reach a layman's lay-man's balance of the budget in the present fiscal year, provided that congress doesn't add too much to what already has been appropriated and the upswing in income continues. con-tinues. "It has been found that the president presi-dent can impound funds to such extent as he deems advisable. He issued the order for a reduction of not less than 10 per cent. On some items the reduction will be more than 90 per cent. "Positions that become vacant are not being filled and promotions are not being made. That is the reason for the complaint of some employes In the securities exchange commission. commis-sion. "Material savings will be made. The estimates run from $290,000,000 to $400,000,000. "We are making a progressive reduction of the budget. Present estimates es-timates show we are within $200,-000.000 $200,-000.000 to $400,000,000 of a balance this year." |