THURSDAY, MAY 27, 1943.

FISCAL DATA

STATEMENT OF MAJ. GEN. A. H. CARTER, ARMY SERVICE FORCES

ESTIMATES PRESENTED TO BUDGET BUREAU AND AMOUNTS PRESENTED TO CONGRESS

Mr. SNYDER. At this point, for use in our later examinations, we should like to have certain statistical data, General Carter.

First, may we have a statement, for the committee's use, showing the War Department's estimates, by appropriations, as presented to the Budget Bureau, and the amounts that have been presented to Congress? We

General CARTER. I have a statement here, Mr. Chairman. shall be very happy to furnish copies of it for the information of the committee.

(Discussion off the record.)

ESTIMATED CARRY-OVER OF UNOBLIGATED FUNDS FROM 1943 TO 1944

Mr. SNYDER. First, we should like to have, for the record, a statement showing, by appropriations, the estimated carry-overs from 1943 to 1944. We wish that just as to the appropriations affected. (The statement requested is as follows:)

Statement of estimated carry-over of unobligated funds from 1943 to 1944

$565, 147, 000

128, 000, 000

10, 000, 000

(1, 100, 000, 000)

26, 000, 000
50, 000, 000
470, 000, 000
28, 600, 000
(525, 000, 000)
452, 000, 000
73, 000, 000
400, 000
900, 000, 000
173, 791, 000

(1, 520, 000, 000)
918, 558, 000
528, 728, 900
72, 713, 100
7, 050, 000, 000
812, 474, 000
(100, 000)
28, 729
3, 576
63, 995

3, 700 89,000 5,930, 000 64, 500

9, 900 1, 200, 000

45, 900 205, 987, 900

12, 472, 839, 200

NET INCREASE OR DECREASE IN 1943 APPROPRIATIONS IN CONSEQUENCE OF INTERCHANGE

Mr. SNYDER. Then may we have, for the record, a statement showing, by appropriations, the net increase or decrease in 1943 appropriations in consequence of interchange?

General CARTER. That statement is here, sir.

Mr. SNYDER. Since the year is not over, if estimates are used in any case, the actual present condition should be indicated and the estimated additional or lesser amounts shown separately.

General CARTER. Yes, sir; the transfers shown have been effected and no others are in contemplation.

(The statement requested is as follows)

Ten percent Interchangeability

Mr. SNYDER. Under date of February 2, 1943, the Director of the Bureau of the Budget submitted to Chairman Cannon a report, prepared with the aid of the agencies involved, upon expenditures and obligations under appropriations and authorizations for war purposes. The report was published in the Congressional Record of February 5. We should like to have for the record such portion of that report as pertains to the War Department, brought down to date.

General CARTER. That is here, sir.

(The statement requested is as follows:)

WAR DEPARTMENT

The War Department for the 3-year period from July 1, 1940, through June 30, 1943, received appropriations net for obligation totaling $126,621,000,000. This includes $31,000,000 of unobligated balances brought forward from prior year appropriations.

Obligations and commitments on December 31, 1942, against the $126,621,000,000 totaled $98,798,000,000; with an unobligated balance of $42,481,300,000 as of that date. It is estimated that by July 1, 1943, additional obligations of $30,000,000,000 will have been made, so that the unobligated balance remaining will be $12,473,000,000.

From July 1, 1940, to December 31, 1942, the War Department expended $36,332,000,000. During the final 6 months of the 1943 fiscal year expenditures are estimated to be approximately $24,561,000,000, leaving as of June 31, 1943, an unexpended balance of $66,256,000,000 which will be available for expenditures after July 1, 1943. The War Department must necessarily carry large balances of both unobligated and unexpended funds because of the nature of many of its expenditures for the payment of personnel and for furnishing of certain supplies which are of a regularly recurring nature every month. In addition, the War Department attempts to avoid seasonal peaks, and therefore

purchases are made in a manner to spread production evenly throughout the year, resulting in a long lag between the time of signing the contract and final payment.

EXPEDITING PRODUCTION

For the 3-year period $6,297,000,000 was appropriated of which $5,340,000,000 was obligated on December 31, 1942, and by June 30, 1943, it is expected that $5,732,000,000 will have been obligated, leaving an unobligated balance as of that date of $565,000,000. Expenditures on June 30, 1943, are estimated at $4,057,000,000 so that there will remain an unexpended balance of $2,240,000,000.

FINANCE SERVICE, ARMY

Total amount appropriated for this service amounts to $9,916,000,000. By July 1, 1943, this entire amount will have been obligated and in addition over $657,000,000 will have to be transferred from another War Department appropriation. This was because of an increase in the size of the Army after the appropriations were made. Expenditures on July 1, 1943, will amount to $8,379,000,000, leaving an unexpended balance of $1,541,000,000. This appropriation is nearly all for pay and travel of the Army, and therefore fluctuates in direct ratio to the size of the Army.

SUPPLIES AND TRANSPORTATION

Since July 1, 1940, there has been appropriated for this service $16,131,000,000. Up to December 31, 1942, there had been obligated $8,760,000,000. With the rapid increase in the size of our Army, expenditures and rate of obligation have been increasing rapidly so that as of July 1, 1943, it is estimated that all but $1,100,000,000 will have been obligated and expenditures will have increased to $10,755,000,000 from $6,505,000,000 on December 31, 1942. This will leave an unexpended balance of $5,400,000,000.

SIGNAL SERVICE OF THE ARMY

This appropriation is for highly technical communications equipment involving a greal deal of critical materials, because of this factor there is considerable lag between the time of commitment and eventual payment. From July 1, 1940, there was appropriated $6,511,000,000 and by December 31, 1942, only $2,601,000,000 had been obligated. However, obligations during the last half of the 1943 fiscal year were greatly accelerated so that on July 1, 1943, it is estimated that $5,610,0000,00 will have been obligated, leaving only 900,000,000 of unobligated funds. At the end of the 1943 fiscal year expended funds are estimated at $2,025,000,000 leaving $4,500,000,000 unexpended balance.

AIR CORPS, ARMY

Under this appropriation title there was appropriated from July 1, 1940, through July 1, 1943, a total of $36,459,000,000. Obligations to December 31, 1942, amounted to $29,347,000,000, leaving an unobligated balance of $7,111,000,000. It is expected the entire sum will have been obligated by July 1, 1943. While as of July 1, 1943, the entire amount of the $36,459,000,000 appropriation for Air Corps, Army, will have been obligated, only $7,335,000,000 had been expended up to December 31, 1942, and by the end of the 1943 fiscal year there will still be at that time an unexpended balance of $23,660,000,000. The reason for the large difference between obligations and expenditures is that in the purchase of aircraft it has been found necessary to contract for planes far in advance of expected delivery. The present appropriations through July 1, 1943, will make it possible to maintain maximum production on the various types of airplanes until June 30, 1945.

ENGINEER SERVICE, ARMY

Appropriations for the 3-year period amounted to $13,568,000,000. On December 31, 1942, there had been obligated $8,516,000,000, and it was estimated this would be increased to $12,048,000,000 by July 1, 1943, which would leave $1,520,000,000 unobligated. A great deal of the engineers' construction is done when the need arises and other expenditures are of a monthly nature, such as repairs and utilities, so that they naturally carry a large sum as unobligated. It is estimated that they will have expended $9,458,000,000 by July 1, 1943, leaving total unexpended funds of $4,200,000,000.

ORDNANCE SERVICE AND SUPPLIES

For the period July 1, 1940, through July 1, 1943, there was made available $33,594,000,000. This excludes $2,210,000,000 transferred from "Supplies and transportation" and consolidated with "Ordnance Service and Supplies, Army" in the 1944 budget. On December 31, 1942, there had been obligated $21,970,000,000 which was expected to increase to $26,544,000,000 by July 1, 1944. This will leave an unobligated balance as of that date of $7,050,000,000. This is due to several causes, the most important being savings on contracts and reductions caused by changes in the Army supply program. Expenditures on December 31, 1942, were $6,780,000,000; it is estimated $4,703,000,000 additional will be expended in the final 6 months of the 1943 fiscal year, leaving $22,240,000,000 unexpended balance as of July 1, 1943.

CHEMICAL WARFARE SERVICE

A total of $1,747,000,000 was made available to this Service, of which $566,000,000 had been obligated on December 31, 1942 and it was estimated that on July 1, 1943 there would be obligations of $934,000,000 leaving an unobligated balance of $812,000,000. Saving had been made both from better manufacturing records and changes in requirements. Expenditures were $226,000,000 at the close of 1942 and expenditures from then until July 1, 1943 are estimated at $192,000,000 making $418,000,000 expended as of that date and a balance of $1,330,000,000 unexpended.

OTHER WAR DEPARTMENT APPROPRIATIONS

These appropriations totaled $2,395,000,000 for the period July 1, 1940 through July 1, 1943. About half of this appropriation is accounted for by the Medical Department, the balance covers various items such as seacoast defense, Chief of Staff's contingent fund, operation and maintenance of the Army of the Philippines, etc. On December 31, 1942 there had been expended $841,000,000 and $1,315,OCO,000 was obligated. As of July 1, 1943 it was estimated that $1,870,000,000 would be obligated, leaving a balance of $525,000,000 unobligated. This balance is subject to the many contingencies that might arise and for which the funds of the Chief of Staff could be properly used.

Summary of appropriations, authorizations, obligations, commitments, and expenditures for War Department appropriations and authorizations through Dec. 31, 1942

[July 1, 1940, through Dec. 31, 1942, actual, with certain estimates through June 30, 1943]

Summary of appropriations, authorizations, obligations, commitments, and expenditures for War Department appropriations and authorizations through Dec. 31, 1942-Continued

[July 1, 1940, through Dec. 31, 1942, actual, with certain estimates through June 30, 1943]

2. Finance service, Army.

5,720.8

3, 538. 0

9, 258.8 11. 348.7

823.3

3 657.5 4.783. 2 2,046. 8 5,035.0

9, 916. 3 15, 031.9

565.1

0