Extraordinary Budgeting of Federal Finances

February 10, 1933

Report Outline
Federal Finannces and the Restoration of Confidence
Proposals for an Extraordinay Budget
Present Partial Use of Extraordinary Budget Principle
Opposition to an Extraordinary Budget
Foreign Experience with Extraordinary Budgets
Special Focus

Federal Finannces and the Restoration of Confidence

Hoover-Mills Pleas for Balancing the Federal Budget

President hoover has stressed the importance of a balanced budget in all of his recent public statements and messages to Congress dealing with government finances. He has held a balanced budget to be the first essential to restored confidence and to business recovery. Likewise, the Secretary of the Treasury has reiterated in a series of public addresses, radio speeches, and newspaper articles that a balanced budget is vital to the whole problem of economic rehabilitation.

To effect a balance of current expenditures with current revenues, many economists are advocating a system of government accounting which would segregate items of capital investment in an extraordinary budget and treat these items on the basis of corporation accounting. This proposal was endorsed in substance by the American Federation of Labor in the January issue of its Monthly Survey of Business. It said:

The budget can be balanced by keeping current operating expense in line with current income. Outlays for emergency needs or capital expenditures are not part of current operating expense and no business undertaking could expect to furnish them from current income. Such outlays are always furnished by long-term borrowing. The federal budget confuses these two different types of financing. The government can well afford to borrow large sums to meet this emergency.

ISSUE TRACKER for Related Reports
Federal Budget and National Debt
Sep. 01, 2017  National Debt
Jul. 12, 2013  Government Spending
May 15, 2012  State Capitalism
Mar. 18, 2011  National Debt
Nov. 14, 2008  The National Debt
Dec. 09, 2005  Budget Deficit
Apr. 13, 2001  Budget Surplus
Feb. 01, 1991  Recession's Regional Impact
Jan. 20, 1984  Federal Budget Deficit
Sep. 09, 1977  Federal Reorganization and Budget Reform
Nov. 24, 1972  Limits on Federal Spending
Jan. 08, 1969  Federal Budget Making
Dec. 06, 1967  National Debt Management
Aug. 01, 1962  Fiscal and Budget Policy
Nov. 27, 1957  National Debt Limit
Mar. 20, 1957  Spending Controls
Dec. 24, 1953  Public Debt Limit
Feb. 13, 1952  Tax and Debt Limitation
Nov. 30, 1949  Government Spending
Jan. 06, 1948  Legislative Budget-Making
May 23, 1944  The National Debt
Feb. 01, 1943  The Executive Budget and Appropriations by Congress
Dec. 27, 1939  Revision of the Federal Budget System
Oct. 10, 1938  The Outstanding Government Debt
Nov. 20, 1937  Budget Balancing vs. Pump Priming
May 02, 1936  The Deficit and the Public Debt
Oct. 19, 1934  The Federal Budget and the Public Debt
Feb. 10, 1933  Extraordinary Budgeting of Federal Finances
Dec. 01, 1932  Reduction of Federal Expenditures
Dec. 01, 1930  The National Budget System
Oct. 02, 1930  Federal Revenues and Expenditures
Nov. 02, 1927  The Public Debt and Foreign Loans
Nov. 15, 1926  Rising Cost of Government in the United States
Feb. 05, 1925  Four Years Under the Budget System
Budget and the Economy
Budget Process
Deficit, Federal Debt, and Balanced Budget