Statement by the President on Cost Reduction by Federal Civilian Agencies.

THE Director of the Bureau of the Budget has reported to me the results of a detailed review of the intensive cost reduction efforts in Federal civilian agencies during fiscal year 1966.

This report shows that we are winning our war on waste.

By practicing economy and finding more efficient ways of getting work done, the civilian agencies produced sayings of $1,200 million in the past fiscal year. Last July the Secretary of Defense reported that his department has realized savings of $4,500 million from the cost reduction program that has been underway over the past several years.

I speak for every taxpayer when I commend the officials and Government employees whose hard work and sense of responsibility made this possible.

I want every person in the executive branch to know that I expect them to work even harder from here on to improve upon this record.

The conflict in Vietnam and the necessity of combating inflation at home are two paramount reasons for holding Government spending to rock bottom.

I intend personally to go over the appropriations enacted during the past session of the Congress to see what we can postpone or cut down this year. I will shortly be reviewing in detail the recommendations of my Cabinet officers and the Director of the Bureau of the Budget with respect to 1967 expenditure cuts.

I also intend to use the strictest criteria in formulating my budget recommendations for 1968 which will go to the Congress next January.

By operating with ever-great efficiency, and by proposing only those programs which meet severe tests of essentiality, we will continue to give the taxpayer full value for his dollar.