When the University reported a $1 million deficit for the fiscal year 1973-74 last year, many Harvard financial planners had an uneasy sense of the future.

Most were in agreement with Financial Vice President Hale Champion's warning in the Treasurer's report to the Overseers that the effects of a rise in inflation and energy costs, combined with a decline in outside grants and the value of the endowment, could lead to an economic situation that is "potentially more serious than most other difficult times in Harvard's history."

The preliminary budget estimates for the past year 1974-75, indicate a rise of 50 per cent in the deficit, to $1.5 million. The rise is a confirmation of Champion's fears.

The "biggest single factor" in the overall deficit, according to Treasurer George Putnam '49, was the rise in the overall energy costs.

Despite the University's fuel-saving efforts, which resulted in a 22 per cent drop in fuel consumption, energy costs rose by more than $3 million.

Bruce Collier, assistant dean of the College for housing, said yesterday that "no matter how pessimistic we make our predictions on fuel expenditures, the economic pressures from outside always rise beyond these estimates."

And President Bok said that without the University-wide fuel saving measures the "astronomical rise in energy costs would have had a devastating impact on the University."

But the rise in energy costs was not the sole reason for the $500,000 increase in the deficit.

In the past fiscal year private donations to the University dropped by more than 9 per cent, totalling $4 million less than the previous year's total. And the Faculty deficit remained at the predicated level of $2 million.

The Faculty, which has the largest of any of the 45 individual University budgets, is projecting an operating deficit of only $1 million for this year.

In spite of the overall pessimistic financial picture, there were some bright spots in last week's budget disclosures.

In a reversal of a trend, the value of Harvard's securities rose by a figure of 10 per cent, while it had dropped by 16 per cent in the previous year.

And it is probable that the final value of the endowment for the past fiscal year will rise to $1.3 billion, from the previous year's $1.2 billion.