11380_1960-1964

DEPARTMENT OF DEFENSEMILITARY

The 1961 budget for this chapter includes funds both for the military functions of the Department of Defense, as heretofore, and for the military assistance program, for-merly carried under the Funds Appropriated to the Presi-dent chapter. Although the appropriation for military assistance will continue to be made to the President, it is now shown with the appropriations for the military func-tions of the Department of Defense.

S U M M A R Y OF B U D G E T A U T H O R I Z A T I O N S A N D E X P E N D I T U R E S

[In millions]

Title of appropriation groups

New obligational authority

Expenditures

Title of appropriation groups 1959

enacted 1960 esti-mate

1961 esti-mate

1959 actual

1960 esti-mate

1961 esti-mate

Military personneltotal *

Active Forces 1 Reserve Forces Retired pay

Operation and maintenance

Procurementtotal

Aircraft Missiles Ships Other

Research, development, test, and evaluation

Constructiontotal

Active Forces Reserve Forces . . .

Revolving and management funds..

Total, military functions Military assistance.

Grand total, Department of DefenseMilitary

$11,463 $11,658 $11,837 $11,801 $11,959 $12,146 Military personneltotal *



Procurementtotal



Constructiontotal





10,174 649 640

10,262 681 715

10,426 612 799

10,544 616 641

10,592 667 700

10, 741 611 794




Procurementtotal



Constructiontotal





10,195 10,317 10, 527 10,384 10,137 10,321




Procurementtotal



Constructiontotal





14,293 13,090 13,085 14,410 13,943 13,602




Procurementtotal



Constructiontotal





6,134 4,107 1,947 2,105

6,143 3,244 1,139 2,563

4, 753 3, 825 2,035 2,471

7,658 3,339 1, 493 1,921

6,670 3, 500 1,651 2,121

6,027 3,479 1,644 2,451




Procurementtotal



Constructiontotal





3, 775 4,189 3,910 2,859 3,680 3, 917




Procurementtotal



Constructiontotal





1,384 1,364 1,188 1,948 1,670 1,359




Procurementtotal



Constructiontotal





1,358 26

1,291 73

1,153 35

1,862 86

1,608 62

1,302 57




Procurementtotal



Constructiontotal





57 30 30 - 1 6 9 - 4 4 4 - 3 5 0




Procurementtotal



Constructiontotal





41,168 1,515

40,647 1,300

40,577 2,000

41, 233 2,340

40, 945 1,800

40, 995 1, 750




Procurementtotal



Constructiontotal




Grand total, Department of DefenseMilitary 42,683 41,947 42,577 43,573 42, 745 42, 745

i Additional obligational authority available by transfer: $535 million in 1959; $430 million in 1960; $350 million in 1961.

Military personnel.Total military personnel ex-penditures (for Active and Reserve Forces and for retired pay) in 1961 are estimated at $12,146 million, $187 million higher than 1960 and $345 million higher than 1959.

Active Forces personnel.Expenditures for Active Forces military personnel in 1961 are estimated at $10,741 mil-lion, $149 million more than 1960 and $197 million more than 1959. The 1961 program provides for a total strength of 2,489,000 on June 30, 1961, the same as on June 30, 1960, but 14,000 below the June 30, 1959, actual strength.

A C T I V E F O R C E S M I L I T A R Y P E R S O N N E L

[In thousands] June SO, 1959 June SO, 1960 June SO, 1961

Total, Department of Defense 2,503 2,489 2,489

Army 861 870 870 Navy 626 619 619 Marine Corps 176 175 175 Air Force 840 825 825

Average man-years in 1961 are estimated at 2,488,000, compared with an average of 2,495,000 in 1960 and 2,564,-000 in 1959. Despite the decline in man-years over the

period, expenditures rise as the estimated average cost per military man increases from $4,160 in 1959 to $4,255 in 1960 and $4,330 in 1961. The increase of $170 per man over the period is caused chiefly by (1) required increases in the Government's social security contribu-tions as an employer; (2) the phased increase in the num-bers of enlisted men receiving proficiency pay; (3) in-creased numbers of men in enlisted pay grades E-8 and E-9; (4) a further rise in the number of dependents; and (5) additional longevity pay reflecting the rising experience level of the forces.

Most of these factors of increasing cost per man are associated with the Defense Department's efforts to de-velop a truly career force. These efforts have been suc-cessful: recruitment and reenlistment rates have improved; the experience level of the forces has increased; the average intelligence level of enlisted personnel has risen; and the rate of disciplinary cases has been sharply reduced. However, the very success of this program has produced some increases in personnel costs, which are compensated for by increased overall effectiveness.

Reserve Forces.Reserve personnel expenditures in 1961 are estimated at $611 million, which is $56 million less than 1960 and $5 million less than 1959. The 1961 budget will provide for about 1,002,000 reservists on paid status at year end compared with 1,083,000 at the end of 1960 and 1,062,000 at the end of 1959. The adjusted reserve strengths, as shown in the accompanying table, will con-tinue to provide an effectively trained military reserve adequate to meet the requirements of the Armed Forces.

R E S E R V E F O R C E S M I L I T A R Y P E R S O N N E L I N P A I D S T A T U S

[In thousands]

June SO, 1959 June SO, 1960 June SO, 1961 Army Reserve 350 358 321

Drill pay status i 314 300 270 Other paid status 36 58 51

Army National Guard 399 400 360

Navy Reserve 130 137 130

Drill pay status i. 120 129 129

Other paid status 10 8 1

Marine Corps Reserve . . 46 47 47

Drill pay status i 45 45 45


Air Force Reserve 65 69 71

Drill pay status1 57 62 63


Air National Guard 71 72 72

Total 1,062 1,083 1,002 i Includes 3- to 6-month trainees. NOTE.Detail may not add to totals due to rounding.

Wherever appropriate, the unit organization of the Reserve components is being changed to conform with that of the Active Forces in order to facilitate their integration in time of emergency. In the Reserve com-ponents of the Army, the changeover to the Pentomic concept has been virtually completed and, coupled with other actions, has resulted in considerably higher mobiliza-tion readiness. By the end of 1961, ground elements of the Marine Corps Reserve will be reorganized to conform

52000060 28 435

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1961

436 THE BUDGET FOR FISCAL YfiAR 1961

with the combat elements of the Regular Fleet Marine Forces. Coupled with the transition to multiple paid drills, this reorganization will effect a marked improve-ment in the mobilization readiness of the Marine Reserve units.

All of the Reserve components participating have benefited from the 6-month training program. This pro-gram, which provides basically trained personnel to the Ready Reserve, allows the Reserve components to con-centrate on advanced unit or individual training and thus maintain a high state of mobilization readiness. During 1961, the 6-month training program will continue to pro-vide the majority of the necessary input of trained recruits to maintain the Reserve components at the planned levels.

Many elements of the Reserve components conduct some of their training with the Active Forces. Other Reserve elements are actually participating in, or taking over, missions assigned to the Active Forces.

In addition to supporting 27 divisions and numerous other combat units, the Army National Guard in 1961 will man an increased number of on-site Nike battalions for the air defense of the United States, thus relieving Active Army units for other duty.

Also contributing to the mission of the Air Defense Command, the Air National Guard will continue to main-tain a certain portion of its fighter-interceptor force on "runway alert" and man, on an "around-the-clock" basis, certain aircraft control and warning radar sites.

Antisubmarine warfare aircraft, destroyers, destroyer escorts, and mine warfare ships manned by Selected Reserve crews of the Navy Reserve will continue to par-ticipate in regular fleet exercises. These crews carry standby active duty orders at all times which, in the event of mobilization, make them and their ships available for immediate deployment. It is expected that by the end of 1961 there will be Selected Reserve crews on 58 destroyers, destroyer escorts, and minesweepers, thus making an im-portant contribution to our antisubmarine and mine war-fare potential.

The Air Force Reserve, in addition to providing a pool of skilled individuals ready to augment the Active Air Force in time of emergency, also maintains a significant airlift capability in being.

Retired pay.Expenditures for retired pay in 1961 are estimated at $794 million, a total that is $94 million more than 1960 and $153 million more than 1959. Of the $794 million in 1961, $22 million is associated with proposed legislation which would authorize military personnel re-tired prior to June 1, 1958, to receive benefits consistent with the higher rates of pay provided by the Military Pay Act of 1958. At the end of 1961, about 289,000 persons will be receiving retired pay, compared to 254,000 at the end of 1960 and 230,000 at the end of 1959. With in-creasing numbers of military personnel who entered serv-ice during World War II becoming eligible for retirement, the numbers and cost of retired persons can be expected to continue an accelerating upward trend in future years.

Operation and maintenance.Expenditures for operation and maintenance activities of the Active and Reserve forces in 1961 are estimated at $10,321 million, which is $184 million more than 1960, but $63 million less than 1959.

Average man-years for both military and civilian per-sonnel, numbers of military units and installations, inven-tories of major weapons such as ships and aircraft, and the associated steaming- and flying-hour programs, all con-tinue to decline gradually from 1959 to 1961. Neverthe-less, overall operation and maintenance costs continue to increase. Among the factors tending to offset the planned reductions in activity levels are higher unit costs per flying hour, up 11 % in two years; per steaming hour, up 15% since 1959; and the higher unit costs of maintaining and overhauling ships, missiles, aircraft, engines, etc. These rising costs are caused chiefly by the introduction of more complex and advanced weapons into the active military forces. For example, the cost of overhauling a jet engine in the new B-58 is about six times as much as that for a jet engine in the older B-47. The annual operating costs for a nuclear-powered submarine are over three times as high as for a conventionally powered sub-marine of a similar type.

In addition to these higher unit costs, the expansion of certain going programs will require increased funds in 1961. The cost of operating and maintaining the ex-panding major electronics and communications systems (SAGE, BMEWS, Missile Master, etc.) will increase by over 70% from 1959 to 1961. Similarly, funds for that portion of the fleet rehabilitation and modernization pro-gram financed under Operation and maintenance will in-crease by about 25% in 1961 over 1960, reflecting con-tinuation of the effort to improve the condition and readi-ness of the fleet. The cost of maintaining and furnishing the rapidly increasing number of family housing units is expected to rise by about 23% from 1959 to 1961. A modest liberalization of the dependent medicare pro-gramthrough relaxation of restrictions on certain speci-fied medical contingencieswill result in an increased cost per patient.

New activities, such as the civilian employee health benefits program enacted last year, are a third factor accounting for increased operation and maintenance costs.

Funds are included to enable the Strategic Air Com-mand to acquire an "on the shelf" airborne alert capability which, if the need should arise, would permit a portion of the heavy bomber force to be on continuous airborne alert during periods of international tension. This pro-gram will require indoctrination training, larger inventories of spare parts (provided for under the Procurement title), and increased maintenance activities.

Procurement.Because procurement of a major weap-ons system is so closely related to the research, develop-ment, test, and evaluation of that system a more accurate picture of the trends from 1959 through 1961 may be ob-tained by combining these two appropriation groupings. Expenditures for this combination are estimated at $17,519 million in 1961, which is $104 million less than in 1960, but $250 million more than 1959.

The 1961 budget provides for the procurement of 1,510 aircraft633 for the Air Force, 658 for the Navy, and 219 for the Army. The total is 99 greater than in 1960, although 224 less than in 1959. The reduction from 1959 is, however, concentrated primarily in trainers and helicopters.

Procurement of both the greatly improved B-52H heavy jet bomber and the supersonic B-58 medium jet bomber will be continued during the year, as well as KC-135 supporting jet tankers. The 1961 procurement


1961

DEPARTMENT OF DEFENSEMILITARY 437

will complete the equipping of 14 B-52 wings. Develop-ment work will continue on the B-70 Mach 3 long-range bomber airframe and engines to provide two prototype aircraft for flight testing in 1963.

An increased number of F-105 supersonic fighter-bombers are planned for procurement in 1961 over 1960. Because of their all-weather capability, special low-altitude handling characteristics, and ability to carry a wide va-riety of conventional as well as nuclear munitions, these aircraft will strengthen significantly the close ground sup-port capability of the tactical air forces. Procurement of the C-130 turboprop transport for tactical airlift will also be continued.

The number of Navy attack aircraft to be purchased, including the supersonic A3 J, will be increased to augment carrier attack and close-support capabilities. Procure-ment of the Navy's supersonic F8U-2N and F4H all-weather interceptors will remain at about the same level as in 1960, but substantially above 1959. An increased number of the GV-1 tanker-assault transport aircraft and S2F antisubmarine aircraft will also be procured.

Total Army aircraft procurement in 1961 will increase more than 35% over 1960, including the Mohawk turbo-prop observation aircraft, the Caribou twin engine transport aircraft, and the Iroquois utility helicopter used for combat area movement, medical evacuation, and light cargo. The first production quantities of the Chinook helicopter will also be bought in 1961.

The 1961 budget reflects the continually increasing emphasis on missiles of all kinds in national defense. Funds for the procurement and production of the four main strategic deterrent missilesAtlas, Titan, Minute-man, and Polariswill be further increased. No new funding will be required in 1961 for the Jupiter and Thor intermediate range ballistic missiles, but procurement of the Hound Dog and Quail for use by the B-52 strategic retaliatory force will be continued at a high level.

Funding for the Bomarc and Nike-Hercules air defense missiles will largely complete the procurement program for these missiles. Procurement of the Talos, Terrier, and Tartar fleet air defense missiles will continue as addi-tional guided-missile ships join the fleet.

Funds will also be devoted to continuing the procure-ment of large numbers of air-to-air missiles such as Sparrow for the Navy and Marine Corps, Falcon for the Air Force, and the combat-tested Sidewinder for both the Air Force and Navy.

A wide variety of other missiles for support of the ground forces is planned for procurement in 1961. The number of Bullpup air-to-surface missiles to be purchased in 1961 will be increased considerably over 1960. In the category of surface-to-surface weapons, the effort on the longer range tactical missile Pershing, offering much greater flexibility, accuracy, mobility, and a considerably shorter reaction time than its predecessor Redstone, will continue on a high priority basis. Additional funds will be provided for the tactical close-support rockets, Little John and an improved version of Honest John. These, together with Lacrosse and Sergeant missiles, will provide medium and short range ground support firepower. A substantial procurement of Hawk missiles, together with the first production quantity of Redeyea man-carried air defense missilewill be made in 1961, to improve the defenses of our ground forces in the field against low level air attack. For close support of front line troops, a sizable quantity of Davy Crocketta man-carried nuclear

rocketwill be procured, and in 1961 the first production buy of an improved guided antitank missile will be made.

Close ground support firepower will be augmented by the procurement in 1961 of a family of lighter, more mobile, self-propelled howitzers. An increased quantity of new 7.62-mm. rifles, machineguns, and ammunition will be purchased.

Included in the 1961 procurement program are about 18,000 tactical vehicles; a third increment of the new 105-mm. armed, diesel powered, medium tanks; tank recovery vehicles; and lightweight, air droppable, armored personnel carriers.

The 1961 shipbuilding program includes the aircraft carrier for which advance procurement funds were appro-priated by the Congress last year. However, it is pro-posed to construct this carrier with a conventional rather than a nuclear powerplant. In addition, funds are pro-vided for construction of 3 guided-missile frigates, 2 guided-missile destroyers, 3 nuclear-powered submarines, 3 Polaris fleet ballistic missile submarines, and 8 other ships, for a total of 20 ships.

The buildup of the Polaris fleet ballistic missile sub-marine force will continue at the rate of three subma-rines per year. The first three were built with funds made available in 1958. Funds appropriated in 1959 were used to build six morethree in 1959 and three in 1960. In addition to the 3 Polaris submarines scheduled for 1961, which will bring the total to 12, funding is provided for the purchase of long leadtime components for 3 more submarines to be started after 1961.

An additional 14 destroyers will undergo major modern-ization in 1961, the second annual increment of the fleet rehabilitation and modernization program designed to improve the antisubmarine warfare capability of the Navy and to extend the useful life of World War II destroyers.

In the electronics category, additional funds are pro-vided for procurement of large radars for two ballistic missile early warning system (BMEWS) stations. Funds are provided for additional semiautomatic ground environment (SAGE) computers, for the radar improve-ment program and to extend the air weapons control system in overseas areas. The 1961 budget also provides for the development of extensive command and control communications for air defense, Strategic Air Command, ground forces, and other needs of the military services.

Research, development, test, and evaluation. Expenditures for basic and applied research, and for the development, test, and evaluation of new and improved weapons and equipment under this title are estimated at $3,917 million in 1961.

Under the rearrangement of the Defense budget adopted last year, funds for the development, test, and evaluation of major weapons systems and components which were previously carried in Procurement accounts, have now been largely transferred to this title. Those remaining in the Procurement title are separately identified.

In the aircraft category, the 1961 program emphasizes the development of a variety of tactical aircraft, continues the aircraft nuclear propulsion program conducted jointly by the Air Force and the Atomic Energy Commission, provides for continuation of the X-15 hypersonic and very high altitude research aircraft, and increases the develop-ment support for the ground launched and manned Dynasoar vehicle which will have near orbital capabilities.


1961


As in 1960, tlie category receiving the largest amount of funds will be missiles and related equipment. Large sums are provided for the improvement of the range, accuracy, and reliability of the Polaris missile.

Intensive research and development work will be con-tinued on the Army's Nike-Zeus antimissile missile. Adequate funds are provided for the full scale testing of this system, under realistic field conditions, in order to ascertain its practicability as a weapon system.

Funding is also provided to continue necessary further developmental work on a wide variety of other tactical missiles just entering the inventory, such as Pershing and Sergeant; as well as on such more advanced projects as an air-launched ballistic missile, the Mauler for air defense of the forward area of the field army, and a new, highly mobile, solid-fuel missile for direct support of Army battle groups.

Antisubmarine warfare research and development will be continued at a high level, including development of both fixed and mobile submarine detection devices, im-proved tracking equipment, nuclear depth charges, and new antisubmarine weapons such as surface and submarine launched antisubmarine missiles.

Funds are also provided to keep abreast of new devel-opments in chemical and biological warfare.

For the military space effort funds are provided for satellite systems for early warning (Midas), reconnaissance (Samos) , communications (Notus), and navigation (Tran-sit). The Department of Defense contribution to the national space program will also include the development of improved solid and liquid missile propellants and of advanced guidance and communications techniques, and research in high-altitude phenomena and space medicine. Funds for the Saturn, a very high thrust booster project, in 1961 are shown in this budget as a part of the funds requested under the National Aeronautics and Space Administration.

Provision is also made for continuation of the present high levels of effort in basic research in order to add importantly to the share of fundamental knowledge and in advanced research in such areas as materials, seismology, oceanography, electronic components, and low temperature physics.

In addition, $150 million is included for the Department of Defense Emergency Fundthe same amount as in 1959 and 1960. This fund permits rapid exploitation of scien-tific breakthroughs and unanticipated technological de-velopments which may occur during the coming year.

Military construction.Expenditures for military construction in 1961 are estimated at $1,359 million, $311 million less than in 1960, and $589 million less than in 1959. Expenditures are continuing to decline as construc-tion of air defense installations and Strategic Air Command bases move toward completion, but are expected to level off as missile base construction activity accelerates.

The 1961 program for active forces continues to place increasing emphasis on missile installations and on elec-tronic facilities for air defense. Funds are provided for the construction of additional Atlas and Titan operational sites, for installations to support the initial deployment of operational Minuteman missile squadrons, and for Polaris weapon system base facilities.

The budget also provides for the improvement of facili-ties for existing radar warning and control systems, such as the Pinetree Line, Dewline, and SAGE; for improved

Nike-Hercules radar facilities; and for further extension the Lor an system.

The program also includes the construction of new research, development, test, and evaluation facilities. Additional funds are included for the Pacific Missile Range, and for the construction of development and test facilities for the Nike-Zeus system.

The existing physical plant of the defense establishment, including waterfront, airfield, maintenance, medical, and housing facilities will be improved and modernized.

Construction expenditures for Reserve Forces facilities are estimated at $57 million, compared with $62 mil-lion in 1960 and $86 million in 1959. The decline reflects the stabilization of these forces and the tapering off of new facility requirements. The emphasis is now on urgently needed replacement construction.

Revolving and management funds.The $30 mil-lion of reappropriation shown under this title for 1961 is the amount to be added to the revolving fund for Wherry housing. These additional funds will permit the Depart-ment of Defense to continue in 1961 its program of acquir-ing and rehabilitating Wherry housing units.

Again in 1961 there will be an excess, estimated at $350 million, of receipts over expenditures in the revolving and management funds of the Department of Defense. This excess of receipts will reduce to $40,995 million the De-partment's net expenditures for Military functions esti-mated under the first six budget appropriation groups.

Composition of the Armed Forces.The 1961 budget for the Military functions of the Department of Defense provides for major forces as follows:

D E P A R T M E N T OF D E F E N S E S U M M A R Y OF M A J O R F O R C E S

[Fiscal years 1959-61]

Actual Planned

June 30,1959 June 80, I960 June 30, 1961 Army:

Divisions 15 14 14 Armored cavalry regiments._ 5 5 5 Armored combat commands 1 1 1 Brigades (infantry) 2 2 2 Battle groups (infantry) 8 8 9 Field artillery missile groups (heavy)

(Redstone) 3 3 3 Army missile commands . 4 4 5 Army air defense antiaircraft battalions.. (85) (81H) (87 H)

Guided missile battalions (equiva-(85) (81H) (87 H)

lents) - 74 73H S2U Other battalions (gun, skysweeper,

automatic weapons) 11 8 5 Separate surface-to-surface missile bat-

talions 18 24 26 Active aircraft inventory (5,199) (5,663) (5,791)

Helicopters 2,357 2,714 2,840 Fixed-whig 2,842 2,949 2,951

Navy: 2,951

Commissioned ships in fleet (860) (817) (817) 382 Warships 386 383

(817) 382

Other 474 434 435 Attack carrier air groups 16 16 16 Carrier antisubmarine air groups 1 11 11 Patrol and warning squadrons. 42 42 41 M arine divisions 3 3 3 Marine air wings 3 3 3 Active aircraft inventory 9,649 8,657 8,348

Air Force: 9,649 8,657 8,348

USAF combat wings (105) (96) (91) 38 Strategic wings 43 40

(91) 38

Air defense wings 27 23 20 Tactical wings 35 33 33

USAF combat support flying forces (145) (118) (115) Air refueling squadrons 60 62 66 M A T S air transport squadrons 27 22 21 Other specialized squadrons 58 34 28

Active aircraft inventory 20,890 19, 513 18,885

i Prior to 1960 the carrier antisubmarine capability was represented by 22 carrier anti-submarine squadrons which have been reorganized into 11 carrier antisubmarine air groups.

Army.Army forces will total 14 divisions and 25 other major combat units at end 1961an increase of 1 battle group and 1 missile command over the force planned for the end of the current year.


1961


There will also be some increase in the number of sep-arately organized tactical surface-to-surface missile units.

Of the 14 divisions, 7 will be deployed in critical oversea areas and 4 others (1 in Hawaii and 3 STRAC divisions in the continental United States) will be ready for immediate deployment to any trouble spot in the world. Other necessary combat and combat-support units will be simil-arly deployed and ready.

In the air defense guided missile battalionswhich in-crease by nine as antiaircraft gun battalions continue to be phased outthe conversion from Nike-Ajax to the nuclear-capable Nike-Hercules missile will continue at a rapid pace. The number of Hawk missile battalions for low altitude defense of Army units overseas will also in-crease considerably.

The active aircraft inventory w^ ill rise during 1961 as modern planes such as the Mohawk observation aircraft and the Iroquois helicopter are delivered.

During 1961, the Army will also receive significant quantities of new equipment to modernize its ground forces. The new M60 tank, the NATO standard 7.62 family of small arms, the improved jeep, and the M113 armored personnel carrier will all enter the inventory in quantity for the first time. Also being received in pro-duction quantities for the first time will be the Little John and Sergeant surface-to-surface tactical missiles, and Davy Crockett, the individual man-carried nuclear-capable rocket for close support of troops on the battlefield.

Navy and Marine Corps During 1961, the Navy will have 817 ships in the active fleet, the same number planned for the end of the current fiscal year but a decrease from 1959. There will also be a small decrease in the number of warships, compared with end 1959.

However, during 1961, the fleet will receive from new construction more new ships than in any year since World War II, except for 1955. Many of these ships will be either nuclear powered, have a guided missile capability, or both.

During 1961, the fifth and sixth Forrestal-class attack carriers, Constellation and Kitty Hawk, will be commis-sioned, replacing older JSssez-class carriers. The first nuclear-powered cruiser, Long Beach, armed with Talos and Terrier fleet air defense guided missiles, together with 16 guided missile destroyers and frigates, will also be com-missioned during the year.

The Polaris ballistic missile-firing submarine force will be augmented by three more submarines during 1961, bringing the total in commission to six by the end of the year. In addition, six other nuclear-powered submarines will be commissioned during 1961.

The antisubmarine warfare forces of the Navy will be significantly improved during the year. In addition to the previously mentioned new ships, many of which have improved ASW capabilities, several new items of ASW equipment will be introduced in 1961. Asroc, a rocket-assisted torpedo and depth bomb; several new types of sonar equipment; and Dash, a drone ASW helicopter, will all become operational for the first time. In addition, a new all-weather search helicopter, the HSS-2, and a new improved carrier-based ASW aircraft, the S2F-3, will be introduced into the fleet during 1961.

While the active aircraft inventory of the Navy will decline, new and improved aircraft, such as the supersonic F4H fighter and the mach 2 all-weather A3 J attack plane, will be introduced into the forces, replacing older models.

The Marine Corps, with three divisions and three air wings, in 1961 will continue to maintain combat-ready forces organized, equipped and prepared to deploy

immediately anywhere in the world. During 1961, with improved personnel management and a lower-than-normal loss of personnel, the Marine Corps will be able to allocate a larger percentage of its strength to the combat forces. This will permit the reactivation by the end of 1961 of a number of battalion landing teams without any increase in overall strength. In addition, Hawk guided missile units will be activated for the protection of combat units against low level aircraft attack.

Combat effectiveness and modernization will be im-proved during this period by the delivery of the first increment of the 7.62 mm. (NATO) weapons family and the introduction of the Davy Crockett weapons system into the Fleet Marine Forces. Aviation effectiveness will be improved by increased air-to-air guided missile capabili-ties; by the introduction of the Bullpup air-to-surface tactical missile; and by the activation of the first in-flight air refueling squadron, which will appreciably improve the capability of Air Fleet Marine Forces units to deploy rapidly to forward areas.

Air Force.The reduction of two strategic wings reflects a phaseout of older B-47 medium bombers, and is partially offset by the delivery of the first wing of the new supersonic B-58 medium bombers and additional quantities of an improved version of the B-52. Because of their much greater range, larger bomb load, greater speed, and more advanced electronics systems, a smaller number of the new B-52 s will provide the same or greater combat capability than was provided by the B-47's phased out. By the end of 1961, 13 heavy bomber wings will be equipped with B-52's, an increasing number of which will carry the Hound Dog stand-off missile and the Quail decoy missile. These wings form the hard core of our nuclear strike force.

More importantly, our retaliatory capability will be further enhanced during 1961 by additions to our long-range missile deterrent force. "By the end of that year, additional units of the Atlas ICBM and the first few Titan ICBM's will be operational. The number of intermediate range ballistic missile squadrons deployed abroad with our allies will also increase in 1961.

Important to the security of the strategic force will be the first operational BME WS station capable of providing warning of an ICBM attack. This warning, together with the previously mentioned "on-the-shelf" airborne alert capability, and the base hardening and dispersal program, will help ensure the immediate response of our nuclear deterrent force in the years ahead.

The reduction of three air defense wings will be offset by continuing deliveries of all-weather Century series fighter aircraft and by provision of surface-to-air Bomarc missile units. By the end of 1961, eight Bomarc squadrons are planned to be operational, compared to four at the end of the current fiscal year.

The capability of the tactical wings will be considerably increased by the availability of additional quantities of the all-weather, supersonic, nuclear-capable F-105, and by the growing availability of tactical missiles and improved weapons.

Overall, there will be a decrease in the active aircraft inventory of the Air Force, primarily through elimination of older aircraft. At the same time, however, there will be a significant increase in the guided missile inventory.

Military assistance.Military assistance expendi-tures in 1961 are estimated at $1,750 million, which is $50 million less than estimated expenditures in 1960 and almost $600 million less than the amount spent in 1959. Recommended new obligational authority for 1961 is


1961


$2,000 million, an increase of $700 million over 1960 and $485 million more than 1959. While it was possible in both 1959 and 1960 to provide deliveries substantially in excess of the new obligational authority through utiliza-tion of unexpended balances, these balances will no longer be sufficient to support essential levels of deliveries if they are not replenished in 1961.

The funds requested will meet recurring costs and also permit essential modernization in conventional and ad-vanced weapons. Over half of the 1961 program will cover expenses for the maintenance and training of free world forces which have been equipped under prior year programs, and for the continued support of activities al-ready underway. About 40% of the program will provide additional military equipment for force improve-ment, primarily for NATO and selected Far East coun-tries. A large portion of these equipment funds will be devoted to advanced aircraft, missiles, and related ground environment for air defense. Other important items are vessels and aircraft for antisubmarine warfare, tactical missiles, and equipment for the modernization of ground forces.

Funds are also included for military construction, nota-bly the U.S. share of the NATO infrastructure program of bases and facilities. In addition, the program will fi-nance contributions to NATO weapons development and production activities.

The type and amount of assistance offered is determined by the nature of the threat in each area and, to a consider-able extent, by the resources that each recipient country is able to make available for its own defense. Outright grant aid is concentrated in the less developed areas. There, in conjunction with defense support assistance pro-vided also under the Mutual Security Act, it permits these countries to maintain the military establishments required to resist external aggression and internal subver-sion. Assistance to our more developed and financially capable allies is being provided increasingly through cost sharing and sales arrangements.

Summary.In summary, the 1961 budget for military functions and Military assistance provides for the Depart-ment of Defense as follows:

New obligational authority.$42,577 million, and in addition $350 million to be derived by transfers from the revolving funds of the Department of Defense. For the

Army there is provided $9,546 million and $260 million to be transferred from the Army stock fund. For the Navy there is provided $12,013 million and $60 million to be transferred from the Navy stock fund. For the Air Force there is provided $17,737 million and $30 million to be transferred from the Air Force stock fund. $1,281 million of new obligational authority is provided for the Office of the Secretary of Defense; and $2,000 mil-lion is provided for military assistance.

Direct obligations.Total direct obligations are esti-mated on a comparable basis at $44,209 million. These are shown by category in the following table :

[In millions]

1959 actual 1960 estimate 1961 estimate Military personnel Operation and maintenance Procurement Research, development, test, and evaluation Military construction

$11,929 10,132 14,800 3. 544 1,748

$12,008 10,300 13, 605 4,268 1,497

$12,187 10, 527 14,364 3,952 1,382

Total, military functions Military assistance

42,151 2,012

41,679 1,748

42, 412 1,797

Grand total 44,163 43, 427 44,209

By excluding intragovernmental transactions from the amounts in the preceding table, data can be obtained on obligations which result in the purchase of goods and services from private individuals and businesses. This measure, set forth on the following table, more closely portrays the economic impact of Defense's activity:

O B L I G A T I O N S T O T H E P U B L I C

[Excludes intragovernmental transactions]

[In millions]

1959 actual 1960 estimate 1961 estimate Military personnel Operation and maintenance Procurement Research, development, test, and evaluation Military construction Revolving and management funds

$11,928 10,145 14,002 3,550 1,711 - 2 9 2

$12,007 10,297 13,265 4,339 1,504 - 2 1 6

$12,187 10,513 13,799 3,952 1,382 - 3 1 5

Total, military functions Military assistance

41,045 1,981

41,196 1,710

41,517 1,757

Grand total 43,026 42,906 43,273

Net expenditures.$42,745 million: Army, $9,383 mil-lion; Navy, $11,683 million; Air Force, $18,614 million; the Office of the Secretary of Defense, $1,315 million; and military assistance, $1,750 million.

R E C A P I T U L A T I O N OF B U D G E T A U T H O R I Z A T I O N S , O B L I G A T I O N S , A N D E X P E N D I T U R E S

[In millions]

Organizational component New obligational authority Direct obligations Expenditures

Organizational component

1959 enacted 1960 estimate 1961 estimate 1959 actual 1960 estimate 1961 estimate 1959 actual 1960 estimate 1961 estimate

Army. Navy Air Force Office of the Secretary of Defense

061 Total, military functions 068 Military assistance

Total, Department of DefenseMilitary..

$9,381 11,820 18,713 1,255

$9,679 11,214 18,475 1,279

$9,546 12,013 17,737 1,281

$9,555 12,147 19,599

851

$9,966 11,677 18,854 1,182

$10,008 12,139 18,994 1,271

$9,468 11,728 19,084

953

$9,349 11,571 18,823 1,202

$9,383 11,683 18,614 1,315



Total, Department of DefenseMilitary..

41,168 1,515

40,647 1,300

40,577 2,000

42,151 2,012

41,679 1,748

42,412 1,797

41,233 2,340

40,945 1,800

40,995 1,750



Total, Department of DefenseMilitary.. 42,683 41,947 42,577 44,163 43,427 44,209 43, 573 42,745 42,745


1961


BUDGET AUTHORIZATIONSJAND EXPENDITURES BY ORGANIZATION UNIT AND;ACCOUNT TITLE

[In thousands]

Description Func-tional code

NEW AUTHORIZATIONS BUDGET EXPENDITURES

wise specified) 1961 estimate

1959 enacted

1960 estimate

1961 estimate

1959 actual

1960 estimate

Total From new

obligational authority

From prior

authority

($3,175,961 $3,227,563 $3,261,000 $3,394,384 $3,468,000 $3,517,000 $3,027,000 $490,000 2,420,618 2,476,700 2,528,000 2, 549,986 2,541,000 2,579,000 2,475,000 104,000

635,692 620,600 607,000 623,577 608,000 605,000 581,000 24,000 3,941,801 3,912,000 4,030,000 3,975,639 3,952,000 4,038,000 3,900,000 138,000

222,759 231,700 200,000 203,313 230,000 200,000 163,200 36,800 88,098 88,000 88,000 83,019 85,000 87,000 71,000 16,000 23,760 24,300 25,000 23,537 24,200 25,000 21, 700 3,300 53, 746 54,000 54,000 47,419 51,000 53,000 46,000 7,000

353,093 234,961 199,000 351, 775 231,000 200,000 161,000 39,000 251,881 48,000 46, 000 278,941 46,000 46,000 35,000 11,000 640.000 715,000 775,000 641,344 700,000 772,000 765,000 7,000

25,000 23,000 2,000 22,000

2,000 25,000 24,000

23,000 2,000 22,000 22,000

2,000

-344,081

24,000

-371,788

2,000 22,000 22,000

-344,081 -371,788

11,463,328 11,657,824 11,837,000 11,801,146 11,959,200 12,146,000 11,267,900 878,100

3,113,219 3,075,824 3,112,000 3,187,325 3,069,810 3,101,000 2,521,000 580,000 2,574, 464 2, 611,110 2,550, 000 2, 600, 596 2, 582,000 2, 601,000 2,134,000 467,000

172, 959 175,850 176,000 172, 220 169,000 172,000 146,000 26,000 4,119,041 4,193,932 4, 282,000 4,194, 519 4,084,000 4, 216,000 3,466,000 750,000

151,700 169,000*

300

157,000 176,000

300

149,000 162,000

320

152,000 172,000

300

136,000 138,000

230

16,000 34,000

70

151,700 169,000*

300

157,000 176,000

300

149,000 162,000

320

152,000 172,000

300

136,000 138,000

230

16,000 34,000

70 300

151,700 169,000*

300

157,000 176,000

300 262

149,000 162,000

320

152,000 172,000

300

136,000 138,000

230

16,000 34,000

70 6,272 6,351 7,000 5,931 6,900 7,000 6,500 500

19,410 20,500 20,000 18,573 20,300 19,900 17,000 2,900 16,520 16,500 16, 575 12,932 16,400 16,400 15,700 700 30,000 15,000 30,000 1,094 12, 500 20,000 17,800 2,200

405 425 425 398 430 430 410 20

800 750 50 50 800 4,238 6,583

220 400 400 4,238 6,583 2,108

195 2,090

95 2,090

95 1,606

178,143

2,108 195

2,090 95

2,090 95

. 142,848 -120,074

1,606

178,143 -138,870 -159,860 -159,860 . 142,848 -120,074

1,606

178,143 -138,870 -159,860 -159,860

10,195, 438 10,317,218 10, 527,300 10,384,420 10,137,063 10,320,805 8, 598, 640 1, 722,165

1,711,548 1,407,300 1,337,000 1,626,740 1,564,000 1,326,000 212,000 1,114,000 2,113,000 2,032,000

184,000 184,000 2,069,400 1,330,700

2,113,000 2,032,000 1,837,199 1,282,000 1,755,000 109,000 1,646,000

434,000 94,000

80,400 156,000

80,400 15,000 25,000 133,850

434,000 94,000 156,088 154,000

80,400 156,000

80,400 15,000 141,000

4,284,600 2,465,550 1,109,650

2,994,000 3,024,000 1,057,000

698,000 981,000 85,000

2,256,000 518,000 1,030.000

79,000

1,738.000 1,164.000

513,000

4,284,600 2,465,550 1,109,650

2,994,000 3,024,000 1,057,000

698,000 981,000 85,000

2,194,000 592,000

518,000 1,030.000

79,000

1,738.000 1,164.000

513,000

4,284,600 2,465,550 1,109,650

2,994,000 3,024,000 1,057,000

698,000 981,000 85,000

2,194,000 592,000

518,000 1,030.000

79,000

1,738.000 1,164.000

513,000 2,033,795

602,535 6,579,475 2,201,520

1,961,644 567,719

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208

1,805,000 455,000

2,231,300 814,000

360

1,805,000 455,000

2,231,300 814,000

360

2,033,795 602,535

6,579,475 2,201,520

1,961,644 567,719

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208

1,805,000 455,000

2,231,300 814,000

360

1,805,000 455,000

2,231,300 814,000

360

2,033,795 602,535

6,579,475 2,201,520

1,961,644 567,719

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208

1,805,000 455,000

2,231,300 814,000

360

1,805,000 455,000

2,231,300 814,000

360

2,033,795 602,535

6,579,475 2,201,520

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208

1,805,000 455,000

2,231,300 814,000

360

1,805,000 455,000

2,231,300 814,000

360

2,033,795 602,535

6,579,475 2,201,520

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208

1,805,000 455,000

2,231,300 814,000

360

1,805,000 455,000

2,231,300 814,000

360

-929,937 -171,418

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208 -247,275 -247,275 -929,937 -171,418

2,441,985 529,258

7,102,046 1,532,519

2,894

-819,223

1,979,000 265,000

5,408,500 1,353,000

1,000

172,208 -247,275 -247,275

14,293,336 13,089,595 13,085,000 14,409,508 13,942,708 13,601,785 2,227,400 11,374,385

M I L I T A R Y P E R S O N N E L

Current authorizations: Military personnel, A r m y Military personnel, Navy Military personnel, Marine Corps Military personnel, Air Force -Reserve personnel, Army -Reserve personnel, Navy Reserve personnel, Marine Corps Reserve personnel, Air Force National Guard personnel, Army National Guard personnel, Air Force Retired pay, Department of Defense

Proposed for later transmission: Under existing legislation: Military personnel, Air Force Under proposed legislation: Retired pay, Department of Defense

Adjustment to reflect comparability with proposed 1961 appropriation structure - -

061

Total, military personnel .

O P E R A T I O N A N D M A I N T E N A N C E

Current authorizations: Operation and maintenance, Army Operation and maintenance, Navy -Operation and maintenance, Marine Corps. Operation and maintenance, Air Force Operation and maintenance, Army National Guard Operation and maintenance, Air National Guard National Board for the Promotion of Rifle Practice, Army Operation and maintenance, Alaska Communication System, Army___ Salaries and expenses, Secretary of Defense Claims, Department of Defense Contingencies, Department of Defense Salaries and expenses, Court of Military Appeals, Department of

Defense - -Operation and maintenance, Olympic Winter Games, Department

of Defense Miscellaneous expired accounts, Army Miscellaneous expired accounts, Navy Miscellaneous expired accounts, Air Force

Adjustment to reflect comparability with proposed 1961 appropriation structure

061

Total, operation and maintenance..

P R O C U R E M E N T Current authorizations:

Procurement of equipment and missiles, Army Procurement of aircraft and missiles, Navy Shipbuilding and conversion, Navy Other procurement, Navy Procurement, Marine Corps Aircraft procurement, Air Force Missile procurement, Air Force Other procurement, Air Force Aircraft and related procurement, Navy Procurement of ordnance and ammunition, Navy. Aircraft, missiles, and related procurement (Air Force) Procurement other than aircraft and missiles (Air Force) Construction of ships, Military Sea Transportation Service, Depart-

ment of Defense Adjustment to reflect comparability with proposed 1961 appropriation

structure

061

Total, procurement.


1961

442 T H E BUDGET FOR FISCAL Y f i A R 1961

BUDGET AUTHORIZATIONS AND EXPENDITURESContinued BY ORGANIZATION UNIT AND ACCOUNT TITLEContinued

[In thousands]


NEW AUTHORIZATIONS (appropriations unless other-

wise specified)

1959 enacted

1960 estimate

1961 estimate

BUDGET EXPENDITURES

1959 actual

I960 estimate

1961 estimate

Total From new


RESEARCH, D E V E L O P M E N T , TEST, A N D E V A L U A T I O N

Current authorizations: Research, development, test, and evaluation, Army Research, development, test, and evaluation, Navy Research, development, test, and evaluation, Air Force Salaries and expenses, Advanced Research Projects Agency, Depart-

ment of Defense Emergency fund, Department of Defense. United States scientific satellite

Adjustment to reflect comparability with proposed 1961 appropriation structure.

061

Total, research, development, test, and evaluation

M I L I T A R Y C O N S T R U C T I O N

Current authorizations: Military construction, Army Military construction, Navy Military construction, Air Force Military construction, Army Reserve. Military construction, Naval Reserve Military construction, Air Force Reserve Military construction, Army National Guard Military construction, Air National Guard Military construction, Army (special foreign currency program) Military construction, Navy (special foreign currency program) Military construction, Air Force (special foreign currency program) Loran stations, Department of Defense Military construction, Advanced Research Projects Agency, Depart-

ment of Defense Construction, Alaska Communication System, Army Military construction, foreign countries, Department of Defense Olympic Winter Games, Department of Defense Access roads, Department of Defense Family housing, Department of Defense


061

Total, military construction

R E V O L V I N G A N D M A N A G E M E N T FUNDS

Public enterprise funds: Acquisition, rehabilitation, and rental of Wherry Act housing, Depart-

ment of Defense: Permanent reappropriation Defense housing, Army Defense housing, Navy Laundry service, Naval Academy

Intragovernmental funds: Army stock fund Navy stock fund. -Marine Corps stock fund Air Force stock fund. . . Army industrial fund Navy industrial fund Air Force industrial fund -Army management fund Navy management fund Air Force management fund Naval working fund -Consolidated working funds, Army Consolidated working funds, Air Force


$561,771 870,188 780,159

435,425 7,807

$1,036,365 1,010,420 1,416,150

293,150 140,950

$1,041, 700 1,169,000 1,334,000

215,000 150,000

$539,117 797,800 813,272

218,323

$700,000 753,000 983,000

335,500 36,500

$878, 000 1,026,000 1,219,000

237,000 150,000

$434,000 592,000 666,000

65,000 45, 550

1,119, 687 291, 492

7,287

483,052 871,865 407,135

3,775,036 4,188,527 3,909,700 2,858,851 3,679,865 3,917,135 1,802,550

230,000 295,000 785,000

6,250 8,000

263,632 204,112 776,833 20,000 8,980 4,000

23,219 16,440

263,632 204,112 776,833 20,000 8,980 4,000

23,219 16,440

263,632 204,112 776,833 20,000 8,980 4,000

23,219 16,440

263,632 204,112 776,833 20,000 8,980 4,000

23,219 16,440

20,000

28,065

23,200

23,545

i 209,000 1 190,000 i 725,000 112,000

1 4,000 4,000 1 8,000 ^ , 0 0 0

2,000 1 3,000 1 4,000 20,000

374,149 325,929

1,127,606 44,512 13,377

255,000 286,000

1,020,000 22,000 11,000 1,000

15,000 13,000

11,483

20,000

2,903 251

6,639 2,710 1,637

207

28,349

23,200

13,000 400

8,000 790

1,500 130

252,000 238,000 774,000

18,000 8,000 4,000

15,000 12,000

1,000 1,000 1,000

20,000

9,670 200

5,000

39,000 213,000 24,000 214, 000 75,000 699,000 2,000 16,000 1,000 7,000 1,000 3,000 1,600 13,400 1,000 11,000 1,000 1,000 1,000

20,000

1,000 1,000 1,000

20,000

1,000 1,000 1,000

20,000

1,000 1,000 1,000

20,000

1,000 1,000 1,000

20,000

190

1,383,798 1,363,961 1,188,000 1,948,: 1,670,020 1,359,060 167, 600

061

57,000 30,000 30,000 15,777 -296 - 4 5

37

-266,280 1,

15, -27 ,

18, 31, 2,

-439, 7, 2,

32,000 -150 - 2 2

14

-365,000 -84,000 -8,000

-26 , 500

42,000 -260 -100

10

-286,200 -85,000 -15,000 -11,000

-13,200 -1 ,400

501,467

918,700 2,000 3,000 2,500

-905,203

1,600 2,000 2,000 1, 560

Total, revolving and management funds _

Total, military functions

57,000 30,000 30,000 -169,487 -443,856 -349,785

41,167,936 40,647,125 40,577,000 41,232,708 40,945, 000 40,995,000 24,064,090

1 To carry out authorizing legislation to be proposed for 1961.


1961


BUDGET AUTHORIZATIONS AND EXPENDITURESContinued BY ORGANIZATION UNIT AND ACCOUNT TITLEContinued

[In thousands]



wise specified)

BUDGET EXPENDITURES



wise specified)

1959 actual

1960 estimate

1961 estimate Description

Func-tional code

1959 enacted

1960 estimate

1961 estimate

1959 actual

1960 estimate

Total From new


From prior

authority

M I L I T A R Y A S S I S T A N C E

Military assistance: Military assistance orders Other. _ J 068 f 2$922,761 \ 592,239 2$815,652 484,348 2 $1,403,150 596,850 $1,657,951 710,167

-27,840

$1,249,000 589,000

-38,000

$1,200,000 590,000

-40,000

$260,000 190,000

$940,000 400,000

-40,000 Repayment of credit sales _ J 068 f 2$922,761 \ 592,239 2$815,652 484,348 2 $1,403,150 596,850 $1,657,951 710,167

-27,840

$1,249,000 589,000

-38,000

$1,200,000 590,000

-40,000

$260,000 190,000

$940,000 400,000

-40,000

Total, military assistance

Total new obligational authority and budget expenditures

J 068 $1,657,951 710,167 -27,840

$1,249,000 589,000

-38,000

$1,200,000 590,000

-40,000

$940,000 400,000

-40,000

Total, military assistance


J 068 1, 515, 000 1,300,000 2,000,000 2,340,278 1, 800,000 1,750,000 450,000 1, 300, 000 Total, military assistance


J 068

42,682,936 41,947,125 42,577,000 43, 572,986 42,745,000 42, 745,000 24, 514,090 18,230,910

R E C A P I T U L A T I O N

Enacted or recommended in this document: Current authorizations:

Appropriations - $42,625, 936

57,000

$41, 892,125

30,000

25,000

$42, 523, 000

30,000

24,000

J $ 4 3 , 5 7 2 , 9 8 6 $42, 722, 000

23,000

$42, 721, 000

24,000

$24,492,090

22,000

$18,228,910

2,000

Permanent authorizations: Reappropriations-

Proposed for later transmission: Appropriations

$42,625, 936

57,000

$41, 892,125

30,000

25,000

$42, 523, 000

30,000

24,000

J $ 4 3 , 5 7 2 , 9 8 6 $42, 722, 000

23,000

$42, 721, 000

24,000

$24,492,090

22,000

$18,228,910

2,000


$41, 892,125

30,000

25,000

$42, 523, 000

30,000

24,000

$42, 722, 000

23,000

$42, 721, 000

24,000

$24,492,090

22,000

$18,228,910

2,000

Total new obligational authority and budget expenditures 42, 682, 936 41, 947,125 42, 577,000 43, 572, 986 42, 745,000 42,745,000 24,514,090 18, 230, 910

EXPENDITURES AND APPLICABLE RECEIPTS OF PUBLIC ENTERPRISE FUNDS [In thousands]

Organization unit and account title Func-tional code

GROSS EXPENDITURES (funds applied)

RECEIPTS FROM OPERATIONS (funds provided)

BUDGET EXPENDITURES

Organization unit and account title Func-tional code

1959 1960 1961 1959 1960 1961 1959 1960 1961

Acquisition, rehabilitation, and rental of Wherry Act Hous-ing, Department of Defense,

Defense housing, Army Defense housing, Navy Laundry service, Naval Academy

Total, public enterprise funds

j 061 $65, 587

( 539 1,157

I 554

$94,300 600

1, 228 564

$102,000 475

1,150 565

$49, 810 836

1, 202 517

$62,300 750

1,250 550

$60,000 735

1,250 555

$15, 777 - 2 9 6 - 4 5

37

$32,000 -150 - 2 2

14

$42,000 -260 -100

10

Acquisition, rehabilitation, and rental of Wherry Act Hous-ing, Department of Defense,

Defense housing, Army Defense housing, Navy Laundry service, Naval Academy

Total, public enterprise funds

j 061

67,837 96, 692 104,190 52,365 64, 850 62, 540 15, 473 31,842 41, 650

9 In addition, orders under sales operations, financed from repayment of credit sales: 1959, $6,388 thousand; 1960, $49,348 thousand; 1961, $40,000 thousand. These orders represent 1961 fund reservations shown under Military assistance, pp. 518-519.


1961

444 T H E B U D G E T FOR FISCAL Y E A R 1961

ANALYSISIOF UNEXPENDED BALANCES [In thousands]

Description

Balance, start of 1959

Unobli-gated

Total


Unobli-gated

Total


Unobli- Total


Unobli-gated

Total

M I L I T A R Y F U N C T I O N S

Enacted or recommended in this document: Appropriations:

Military personnel, Army__ Military personnel, Navy Military personnel, Marine Corps Military personnel, Air Force -National Guard personnel, Army National Guard personnel, Air Force . Other military personnel appropriations Operation and maintenance, Army Operation and maintenance, Navy Operation and maintenance, Marine Corps Operation and maintenance, Air Force.. Operation and maintenance, Alaska Communication System, Army Other operation and maintenance appropriations. Procurement of equipment and missiles, Army Procurement of aircraft and missiles, N a v y Shipbuilding and conversion, N a v y Other procurement, Navy Procurement, Marine Corps Aircraft procurement, Air Force -Missile procurement, Air Force Other procurement, Air Force Aircraft and related procurement, N a v y -Procurement of ordnance and ammunition, N a v y Aircraft, missiles, and related procurement (Air Force) Procurement other than aircraft and missiles (Air Force) Construction of ships, Military Sea Transportation Service, Department of

Defense - - - -Research, development, test, and evaluation, Army -Research, development, test, and evaluation, Navy Research, development, test, and evaluation, Air Force Salaries and expenses, Advanced Research Projects Agency, Department of

Defense Emergency fund, Department of Defense United States scientific satellite -Military construction, Army Military construction, Navy Military construction, Air F o r c e - . Military construction, Advanced Research Projects Agency, Department

of Defense Military construction, Army Reserve Military construction, Naval Reserve Military construction, Army National Guard Construction, Alaska Communication System, Army Other military construction appropriations Undistributed 1961 military assistance fund reservations.

$43,210 23,993 3,733

1,319

441,506

994,258

258,016

I $141,970 66,543 19,686

101,330 57,901 87,790 66,297

904,187 < 687,611

46,732 1,020,297

1,123 25,264

2,916, 576

$51

119,217 16,413

7,517 * 4,595

621

503,535

3,469,038

578,637

1,100,634

157,220

1,464,697 44,341

2,757,870 438,344

5,610 55,181 10,229 72,672

67,584

4,464,550 349,753

10,038,798 2,379,055

9,143 337,735 306,603 490,914

81,958

1,444,259 81,512

2,182,323 707,675

57,442 44,975 85, 532

112,146

114,878 139,102 902,601

32,829 468,311 482,518

1,927,872

44,517 12,464

672

Total, appropriations. 7,896,856

Revolving and management funds: Acquisition, rehabilitation and rental of Wherry Act housing, Department

of Defense -Defense housing, Army Defense housing, Navy Laundry service, Naval Academy Army stock fund-N a v y stock fund Marine Corps stock fund Air Force stock fund Army industrial fund Navy industrial fund Air Force industrial fund Army management fund Navy management fund Air Force management fund Naval working fund Consolidated working funds, Army Consolidated working funds, Air Force

Total, revolving and management funds Proposed for later transmission:

Appropriations (military personnel accounts)

88,334 856 610

67 688,792 122,542 38,077

171,892 444,686 764,356 80,932

1,064 181,814

3,037 9,677 3,897

2,600, 633

Total, military functlons. 10,497,488

84,147 22,656

105, 064 109, 685 633,895

15,968 12,066 9,645

615 56,786

31,725,477 7,512,6

90,677 883 831 108

845,143 377,070

52,626 252,467 187,211 166,800 82,113

- 4 0 4 521,296

16,256 14,175 5,

130

103,254 372 248

41 625,335 34,798 14,323

144,134 440,583 779,730 72,895

1,073 199,711

1,447 7,890 2 ,602

2$240,288 47,279 23,963

3113,559 56,986 54,629 72,025

846,382 615,293

44,656 925,675

1,256 12,414

2,635,034

$91,054 11,552 7,089

3,775,731

336,897

746,293

$242,958 57,979 26,928

123,559 41,858 12,222 85,527

817,233 630,812

45,124 1,031,573

707 68, 665

2,397,911

$26,054

1,089

448,216

4,046,583 449,842

9,238,318 2,989,099

1,598 360,390 378,990 457,632

299,230

125,900 1,636,000

219,000 323,100

1,393,053 71,087

414,633 221,431

29, 922 65,251

164,231

39,796

324,162 451,589

1, 585,266

25,162 45,885 17,279

615 45,429

88,798 511,727

24,513 2,105 7,625

15,180 50

2,613,278 2,428,435

34,338,755 9,941,038

30,630,458

131,899 430 426

72 744,603 256,744

44,139 291,351 191,730 133,503 42,726

- 3 , 1 3 4 960,587

6,964 12,

5,905 113

6,642,981

83,229 57

120 27

627,422 41,328

- 2 , 8 1 6 97,185

396,266 741,582

73, 822 1,000

190,140 1,000 4,890

600

3,817,390

427,896 3,968,000 1,642,000 1,087,994 3,982,607

746,883 3,287,488 1,315,949

706,755 640,843 921,657

252,880 104,450

332,794 369,702

1,342,099

35,707 19,790 15,259 32,314

215 52,203

2, 820,145

33,450,603

2, 255,851

8,898,832

30,686,530

129,899 130 298

58 845,830 266,773

28,450 268,702 187,089 133,503 54,282

- 3 , 9 3 4 41,887 4,964 9,088 3,405

108

1,970,532

2,000

32,659,062

149,897 709,276

1,014,821 25,793 72,900

1,017,600 393,000 335,100 424,053

7,087

30,122 26,751

160, 731

39,796

93,696 88,298

356,727

4,513 2,105 4,625 3,180

1,149,150

6,136, 363

68, 229 67 95 17

499,560 35,313

4,734 60,141

355,401 762,133

73,823 1,000

199,440 1,000 3,890

2,064,843

8,201,205

See footnotes at end of table, p. 445. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1961

D E P A R T M E N T O F D E F E N S E M I L I T A R Y 445

ANALYSIS OF UNEXPENDED BALANCESContinued [In thousands]

Description





Description

Unobli-gated

Total Unobli-gated

Total Unobli-gated

Total Unobli-gated

Total

M I L I T A R Y A S S I S T A N C E

Enacted or recommended in this document: Appropriations:

Military assistance orders $272,624 868,584

8$40,498 772,109

8$49,387 656,108

8 $49,387 662,959 Other $21,465

$272,624 868,584 $52,060

8$40,498 772,109 $35,000

8$49,387 656,108 $35,000

8 $49,387 662,959

Total, appropriations, military assistance

Total, Department of DefenseMilitary.

$21,465 $272,624

868,584 $52,060 8$40,498

772,109 $35,000 8$49,387

656,108 $35,000 8 $49,387

662,959

Total, appropriations, military assistance

Total, Department of DefenseMilitary.

21,465 1,141,208 52,060 812,607 35,000 705,496 35,000 712, 346 Total, appropriations, military assistance

Total, Department of DefenseMilitary. 10,518,953 35,479,963 9,993,097 34,263,210 8,933,832 33,364,558 8,236, 205 33,195,357

1 Excludes deficiencies in the Military personnel, Army, 1957 account, in the amount of $9,837 thousand and in the 1956 account, in the amount of $7,084 thousand.

2 Excludes deficiencies in the Military personnel, Army, 1957 account, in the amount of $6,890 thousand and in the 1956 account, in the amount of $6,520 thousand.

3 Excludes deficiencies in the Military personnel, Air Force, 1959 account, in the amount of $43,265 thousand and in the 1968 account, in the amount of $15?114 thousand.

* Excludes deficiency in the Medical care, Navy, 1958 account, in the amount of $6,882 thousand.

s Excludes deficiency in the Medical care, Navy, 1958 account, in the amount of $8,601 thousand.

e Excludes unfilled orders of $6,706 thousand from other accounts which will become reimbursements in the subsequent year.

7 Excludes unfilled orders of $8 thousand from other accounts which will become reim-bursements in the subsequent year.

8 Excludes balances of outstanding undelivered military assistance orders reflected as balances under the military function appropriations.


1961

446 THE BUDGET FOR FISCAL YEAR 1961

SUMMARY OF BUDGET AUTHORIZATIONS, EXPENDITURES, AND BALANCES [In thousands]

Description 1959 actual 1960 estimate 1961 estimate

Balances brought forward at start of year from authorizations: Enacted or recommended in this document:

Appropriations Revolving and management funds


$32,866, 685 2, 613, 278

Total balances brought forward.. 35,479,963

New obligational authority: Enacted or recommended in this document:

Current authorizations: Appropriations Permanent authorizations: Reappropriations..

42,625, 936 57,000

Total new obligational authority enacted or recommended. Proposed for later transmission: Appropriations

Total new obligational authority Other amounts available: Net transfers of balances to () other agencies.

Total budget authorizations available

42,682,936 -25,541

78,137,358

Expenditures: From obligational authority enacted or recommended:

Out of new obligational authority Out of balances of prior obligational authority

43,572,986

Total expenditures from obligational authority enacted or recom-mended 43,572,986

From obligational authority proposed for later transmission: Out of new obligational authority Out of balances of prior obligational authority

Total expenditures from obligational authority proposed for later transmission -

Total budget expenditures.. 43,572, 986

Amounts no longer available: Unobligated balances rescinded Unobligated balances expiring and lapsing Capital transfers from revolving funds to receipt accounts-Adjustment to balances downward in expired accounts

4,651 143,553

9,200 143,758

Total amounts no longer available . 301,162

Balances carried forward at close of year from authorizations: Enacted or recommended in this document:

Appropriations Revolving and management funds


Total balances carried forward at close of year..

31,443,065 2, 820,145

34,263,210

$31, 443, 065 2,820,145

$31,392, 026 1,970,532

2,000

34,263,210

41,892,125 30,000

41,922,125 25, 000

41,947,125

76,210,335

42,722, 000

42,722, 000

23,000

23, 000

42, 745,000

97,734 3,044

100, 778

31,392,026 1,970,532

2,000

33,364,558

Direct obligations as shown in detailed schedules for general accounts $44,163,493 $43,426, 767 $44,2 08, 664 Reimbursable obligations shown in detailed schedules 11,429,826 11, 266, 744 10, 918, 291 Deduct reimbursable orders, recoveries and adjustments - 12,567,495 11,787, 899 11,8 53, 528

Obligations incurred, net 43,025,825 42, 905, 612 43,273,427


1961


MILITARY PERSONNEL

The following narrative statement covers the active duty appropriations for the Army, Navy, Marine Corps, and Air Force.

1. Pay and allowances.This provides for the pay and allowances of military personnel on active duty, including cadets and midshipmen at the three service academies, aviation cadets, and other officer candidates.

The number of active duty military personnel provided for is shown in the following table. The personnel in the Reserve components of the defense forces are described under the pertinent appropriations below.

Year-end number Average number

1959 actual

1960 estimate

1961 estimate

1959 actual

1960 estimate

1961 estimate

Defense total 2,503,233 2,489,000 2,489,000 2,564,450 2, 494,986 2,488,110

Officers.._ Enlisted Officer candidates. .

318,437 2,174,385

10,411

314,700 2,161,830

12,470

314,700 2,161, 705

12, 595

321,623 2, 231, 721

11,108

316,384 2,166,015

12, 587

316,369 2,159,181

12, 560

Army 861,294 870,000 870,000 887,964 870,300 870,700

Officers.. Enlisted Military Academy

cadets

101, 239 758,239

1,816

100,100 768,100

1,800

100,100 768,100

1,800

102, 252 783,343

2,369

100, 504 767,397

2,399

100, 274 768,051

2,375

Navy 626, 340 619,000 619,000 636,393 619, 649 618,959

Officers... Enlisted.. Naval Academy

midshipmen Aviation cadets Officer candidates.-Aviation officer

candidates

69.795 552,221

2,534 1, 111

570

109

69,700 543,300

2,629 425

2,859

87

69,700 543,300

2,732 243

2,899

126

70, 312 560,356

3,476 1,249

836

164

69,319 544,409

3,521 790

1,460

150

69,953 543,302

3,607 290

1,692

115

Marine Corps 175, 571 175,000 175,000 185,033 175,000 175,000

Officers. Enlisted Aviation cadets

16,065 159, 506

16, 200 158, 530

270

16,200 158, 405

395

16, 239 168,794

16,344 158, 508

148

16, 208 158,438

354

Air Force 840,028 825,000 825,000 855,060 830,037 823,451

Officers Enlisted Air Force Academy

cadets Aviation cadets

131,338 704,419

1,614 2,657

128,700 691,900

2,000 2,400

128,700 691,900

2,350 2,050

132,820 719,228

1,133 1, 879

130,217 695,701

1,534 2,585

129,934 689,390

1,913 2,214

An additional amount required in 1960 by the Air Force to support the average number in the above table is shown under Proposed for later transmission.

Provision is made for amounts otherwise available as quarters allowances to be paid (a) to the revolving fund for acquisition, rehabilitation, and rental of Wherry Act housing, in cases where such housing is assigned as public quarters, (b) as mortgage payments on Capehart housing, (c) to the Commodity Credit Corporation in payment for foreign currencies used to construct family housing, and (id) to the operation and maintenance appropriations to maintain and operate surplus commodity housing.

In addition, provision is made for payment for pro-ficiency advancements to selected enlisted personnel in critical skill areas. Funds are provided for advancement of 163,000 men by June 30, 1960, and 230,600 men by June 30, 1961. It also provides for the Government's contribution to the Federal old-age and survivors insur-ance trust fund under the Servicemen's and Veterans' Survivor Benefits Act, purchase of individual clothing for initial issue to enlisted personnel, replacement of clothing issues in Korea, and for payment of clothing maintenance allowances.

2. Subsistence in kind.This provides for the purchase of food supplies for issue as rations to enlisted personnel including emergency and operational rations.

3. Movements, permanent change oj station.This pro-vides for permanent change of station travel for indi-

viduals and groups of military personnel and their dependents, including dislocation and separation travel allowances, storage of household goods in commercial facilities, and transportation of personal property. Pay-ment for services furnished by the Military Sea Trans-portation Service and Military Air Transport Service for transportation to and from overseas of military personnel, their dependents, household goods, and automobiles is also included.

4. Other costs.This provides for expense of appre-hension of deserters and escaped military prisoners, payment of interest on money deposited by enlisted personnel, payment of death gratuities to beneficiaries of military personnel, and payment of premiums on service-men's mortgage insurance.

Current authorizations:

M I L I T A R Y P E R S O N N E L , A R M Y

For pay, allowances, individual clothing, subsistence, interest on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except those undergoing reserve training), expenses of apprehension and delivery of deserters, prisoners, and members absent without leave, including payment of rewards of not to exceed $25 in any one case, [$3,233,063,000] $3,261,000,000, and, in addition, [$281,000,0003 $260,000,000, to be derived by transfer from the Army Stock Fund. (10 U.S.C. 1035, 1475, 3536, 3687, 4561, 4562, 4741; 37 U.S.C. 31a-86, 281-238, 251, 253, 805; 38 U.S.C. 691a-g; 50 U.S.C. App. 2201-2216; Department of Defense Appropriation Act, 1960.) A p p r o p r i a t e d 1960, $3 ,233,063,000 Est imate 1961, $3 ,261 ,000 ,000 Appropriated (adjusted) 1960, $3,227,563,000

Program and Financing

1959 actual 1960 estimate 1961 estimate

Program by activities: Direct obligations:

1. Pay and allowances . . . 2. Subsistence in kind 3. Movements, permanent change of

station . . . _ . _ _ .... 4. Other costs ._ _ _

Total direct obligations

Reimbursable obligations: 1. Pay and allowances _ . __ 2. Subsistence in kind __ 3. Movements, permanent change of

station

4. Other costs . . .

Total reimbursable obligations..

Total obligations.

Financing: Unobligated balance transferred from

" A r m y stock fund" (72 Stat. 714; 73 Stat. 366; 1961 appropriation act)

Advances and reimbursements from Other accoimts . . . _ . Non-Federal sources (10 U.S.C.

4621)

$3,037, 744,239 212,306,625

247,086,347 4,466,105

$3,034, 763,000 193, 494,000

237,431,000 4,982,000

$3,081,851,000 193,021,000

241,010,000 5,118,000






station



Total obligations.




4621)

3,501,603,316 3, 470, 670, 000 3, 521,000,000






station



Total obligations.




4621)

23,870,000 153,250,920

2,241, 525 304,000

18, 437,000 148, 506,000

2,169,000 218,000

21, 349,000 145,264, 000

2,169, 000 218, 000






station



Total obligations.




4621)

179, 666,445 169,330, 000 169,000,000






station



Total obligations.




4621)

3,681,269, 761

-375,000,000

-59 , 006, 958

-120, 659, 487 49,357,684

3,640,000,000

-281,000,000

-58 , 830,000

-110, 500,000 37,893, 000

3,690,000,000

-260,000,000

-58 , 942,000

-110, 058,000 Unobligated balance no longer available-

New obligational authority.

3,681,269, 761

-375,000,000

-59 , 006, 958

-120, 659, 487 49,357,684

3,640,000,000

-281,000,000

-58 , 830,000

-110, 500,000 37,893, 000

3,690,000,000

-260,000,000

-58 , 942,000

-110, 058,000 Unobligated balance no longer available-

New obligational authority. 3,175, 961,000 3,227, 563,000 3,261, 000,000

New obligational authority: Appropriation Transferred to "Emergency fund, De-

partment of Defense" (73 Stat. 383)

$3,175,961,000 $3,233,063,000

- 5 , 500,000

$3, 261,000, 000

Appropriation (adjusted)

$3,233,063,000

- 5 , 500,000

Appropriation (adjusted) 3,175,961,000 3,227, 563,000 3,261,000,000

Object Classification

Direct obligations: 01 Personal services: Military 02 Travel 03 Transportation of things 07 Other contractual services 08 Supplies and materials 10 Lands and structures

$2,925, 965,875 168, 539,084 68, 219,918 13,479, 721

266,369,718 2,788,700

$2, 916,038,100 159,446,000 67,868,000 12,905,600

236,939,100 6,179,900

$2,948,806, 800 165, 520,000 65,472,000 12,983,600

236, 585,100 8,988,700


1961


MILITARY PERSONNELContinued Current authorizationsContinued

M I L I T A R Y P E R S O N N E L , A R M Y C o n t i n u e d

Object ClassificationContinued

1959 actual 1960 estimate 1961 estimate

Direct obligationsContinued 11 Grants, subsidies, and contributions. 12 Pensions, annuities, and insurance

claims 13 Refunds, awards, and indemnities. _ 14 Interest 15 Taxes and assessments


Reimbursable obligations: 01 Personal services: Military 02 Travel 08 Supplies and materials 10 Lands and structures

$7,000

11380_1960-1964

Documents

military assistance

grand total

military functions

department of defensemilitary

management funds

pay operation

n d e x p e n d i t

t i o n s