Important members of the Administration who are connected with the Budget Bureau today said that Pre: ident Roosevelt intends to put his rearmament programme into effect without any considerable increase in the budget for the 1940 fiscal year.
There officials said that the 1940 budget would not greatly exceed that for- 1939- despite the anticipated increase in defence expenditures. They said that in all probability new taxes might be avoided by reducing other items of Government expenditure, particularly expenditures for relief.
The President today told the press that details of the naval and military budgets were still incomplete. However, he said that the Government would keep defence costs divorced from both emergency relief and self-liquidating ' P.W.A. projects.—United Press.
Text read from the printed page and cleaned; old type leaves the occasional error.