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4 EDUCATION AND KNOWLEDGE

5 NATURAL RESOURCES AND

ENVIRONMENTAL

COMMERCE, TRANSPORTATION
AND COMMUNICATIONS

6.8

1.9

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DEVELOPMENT

10 LABOR AND MANPOWER

I! GENERAL GOVERNMENT

12 INTERNATIONAL RELATIONS I's VETERANS

I

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FUNCTIONAL FIELDS

(ORDER OF DESCENDING 69 OUTLAYS

I NATIONAL SECURITY

FIGURE IV

RELATIONSHIPS BETWEEN RED AND OUTLAYS: LOW CORRELATION BUT MOVING CLOSER

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2 WELFARE

0.1 0.2

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Dr. HARRIS. In figure I, which is also attached at the back of your document, I would like to show the 13 functional fields that we identified. These are national security, welfare, health, and so on. In this figure we show the percent of the total Federal Budget allocated to these 13 functional fields in fiscal year 1969.

National security amounts to about 45 percent and is first in priority. Welfare is second, with 20 percent of the total outlays allocated to it. Health is third, with 7 percent of the total outlays allocated to it. Commerce, transportation, and communication are 4.7 percent. Education and knowledge, are 3.3 percent.

Agriculture is 3.2.

And the other fields all fall at 3 percent or less: International relations, labor and manpower, veterans, space, housing and community development, natural resources and environmental and general

government.

I think it is important to recognize space as only 2.3 percent of the total Federal budget in 1969. Space is defined as the space mission per se, without the NASA program areas of aircraft technology or space

sciences.

Mr. MOSHER. Mr. Chairman, can I interrupt just a second?
Mr. DADDARIO. Of course, anytime.

Mr. MOSHER. When you are talking about Federal budget, are you talking about the budget as proposed by the President or funding as finally appropriated by the Congress?

Dr. HARRIS. As proposed by the President.

Mr. DADDARIO. Yes. While you have been interrupted.

Dr. HARRIS. Yes, sir.

Mr. DADDARIO. How does the interest on the national debt fit into this?

Mr. LEDERMAN. In our particular study, we excluded the interest on the national debt as having no function in itself, but a method of financing other functions.

Mr. DADDARIO. So we would have to take the overall budget, and deduct from it.

Dr. HARRIS. That is correct, and then that is the allocation.

Mr. DADDARIO. Then you have your list.

Dr. HARRIS. Right.

Mr. DADDARIO. One other point. Is that the only deduction we would have to consider? Have you left anything else out?

Mr. MOSHER. What budget are you using; the old budget?

Mr. LEDERMAN. This is the new budget concept.

Mr. MOSHER. The new budget. Do you leave out the trust funds then, like the social security trust fund?

Dr. HARRIS. They are in the budget.

Mr. DADDARIO. The interest on the debt would be the only

Mr. LEDERMAN. The interest on the debt and some relatively minor intragovernmental payments that are not specified in the budget as to functional field.

Mr. DADDARIO. Well, Dr. Harris, I would appreciate it if you would take a look at it just so we might know what the other items were and then we would be in pretty good shape to use these procedures.

Dr. HARRIS. Fine. We can amplify our statements and be explicit on that point.

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