econintersect .com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 17 December 2017

Estimated Costs For The Current Administration's Goals For Increasing The Readiness, Size, And Capabilities Of The Military

from the Congressional Budget Office

This report describes CBO’s analysis of the costs and budgetary consequences through 2027 of the current Administration’s goals for increasing the readiness, size, and capabilities of the military. The report draws from the fiscal year 2018 budget request submitted by the Department of Defense (DoD) and from other official documents, including Congressional testimony presented by DoD officials.

The 2018 budget request calls for $640 billion in funding for the department. Of that total, $575 billion would fund base-budget activities (such as day-to-day military and civilian operations and developing and procuring weapon systems) and $65 billion would fund overseas contingency operations (OCO, mostly for the conflicts in Afghanistan and in Iraq and Syria). The base-budget funding request is 3 percent more than the amount that would have been requested for 2018 under the Obama Administration’s final Future Years Defense Program, the 2017 FYDP, after adjusting for inflation.

For the years after 2018, CBO estimates, the Administration’s goals for the military would result in steady increases in costs so that by 2027, the base budget (in 2018 dollars) would reach $688 billion, more than 20 percent larger than peak spending during the 1980s (see figure below). Several factors would contribute to the rising costs after 2018, including the following:

  • The number of people serving in the armed forces would increase by more than 237,000 (or about 10 percent), CBO estimates;
  • The Navy would increase its fleet to 355 battle force ships (nearly 30 percent more than are currently in the fleet); and
  • Purchases of new weapons would increase, as would spending for research on future weapons.

Funding for DoD's Activities and Projected Costs of the Administration's Goals for the Military

Costs also would rise because growth in expenses for military personnel and for operation and maintenance (O&M) would continue to outpace inflation, CBO anticipates.

If the new Administration’s goals for increasing the readiness, size, and capabilities of the military were pursued, cumulative costs would be $683 billion (or 12 percent) higher from 2018 through 2027 than costs of the Obama Administration’s final budget plan for those same years, according to CBO’s projections. About half of that difference ($342 billion) would result from implementing the Trump Administration’s goals for expanding the size of the military after 2018. The other half of that difference would accrue primarily because more spending is planned for readiness and for research and development than was included in the Obama Administration’s final budget plan and because the current plan starts at a higher end strength than would have been the case under the 2017 FYDP. Specifically, the new Administration’s request calls for 2.130 million military personnel in 2018, whereas the Obama Administration’s final plan called for 2.074 million military personnel in that year.

National defense funding for the 2018 - 2021 period is subject to caps set by the Budget Control Act of 2011 (BCA). If DoD’s costs grow in accordance with CBO’s projection and the costs of agencies other than DoD that are funded in the national defense budget grow at the rate of inflation, total national defense costs for 2018 through 2021 would exceed the BCA caps by $295 billion, CBO estimates.

OCO costs are not constrained by the BCA. CBO did not attempt to project OCO costs because of uncertainty concerning current conflicts and the possibility of new ones.

Data and Supplemental Information

Related Publications

Source

https://www.cbo.gov/publication/53350

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors








search_box
Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.







Keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government




























 navigate econintersect .com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved