Defense Budget for FY2001: Data Summary

Congressional research reportFeb 23, 2000

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Defense Budget for FY2001:

Data Summary

February 23, 2000

(name redacted)

Analyst in National Defense

Foreign Affairs, Defense, and Trade Division

(name redacted)

Specialist in National Defense

Foreign Affairs, Defense, and Trade Division

Congressional Research Service ˜ The Library of Congress

ABSTRACT

This report presents basic information on the U.S. defense budget. It provides figures on the

Clinton Administration’s FY2001 national defense budget request, including data on budget

authority and outlays for the Department of Defense and for the national defense budget

function. It also provides figures on historical trends in overall defense spending, including

data on the growth and decline of defense spending, on defense outlays as a share of federal

expenditures, and on defense outlays as a share of gross domestic product. It also defines key

defense budget terms. This report will be updated with the next President’s budget request

in February 2001.

Defense Budget for FY2001:

Data Summary

Summary

This report presents defense budget data in a manner designed to provide various

perspectives on U.S. military spending. Part I presents basic data on the Clinton

Administration’s FY2001 national defense budget request, including data on budget

authority and outlays for the Department of Defense and for the national defense

budget function. Part II shows trends in overall defense spending, including figures

on the growth and decline of defense spending, on defense outlays as a share of

federal expenditures, and on defense outlays as a share of gross domestic product.

Part III defines key defense budget terms.

Among the trends reflected in these data, several stand out.

The Clinton Administration is requesting $305.4 billion in new

budget authority for national defense in FY2001 (see Table 1), which

represents an increase of 1.3 percent in real, inflation-adjusted dollars

from the FY2000 level.

! Budget authority for national defense (including DOD military

functions and defense-related activities of other federal agencies)

declined by 33 percent, adjusted for inflation, between FY1985, the

peak of the 1980s buildup, and FY2000. (See Table 6.) Under

Administration projections, funding for national defense will stay flat,

adjusted for inflation, through FY2005.

! Funding for weapons procurement has been in decline since FY1985,

bottoming out in FY1997 at $45.2 billion in constant FY2001

dollars. Between FY1985 and FY2000, procurement funding

declined much more rapidly than the defense budget as a whole,

falling by 60%. Under Administration plans, it will increase over the

next few years. (See Figure 2.)

! Under Administration projections for FY2001, outlays for national

defense will constitute 2.9 percent of gross domestic product (GDP)

(see Table 11 and Figure 8) and 15.6 percent of total federal outlays

(see Table 13 and Figure 9). National defense spending will

represent a smaller share of the economy than at any time since

before World War II. In comparison, during the defense buildup of

the 1980s, national defense spending reached a peak of 6.2 percent

of GDP in FY1986 and 27.1 percent of total federal outlays in

FY1987. While defense outlays are at historically low levels as a

percentage of total federal outlays, this trend depends as much on

increases in other areas of the federal budget – especially in Social

Security, Medicare, and other entitlements – as on decreases in

defense spending.

To illustrate trends in the regular defense program, most of the data included in

this report exclude costs of Operation Desert Shield/Desert Storm, which was largely

financed by allied contributions.

Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Part I: The FY2001 Defense Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Part II: Trends in Defense Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Part III: Definitions of Budget Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

List of Figures

Figure 1. DOD Budget Authority by Component, FY2001 request . . . . . . . . . . 7

Figure 2: DOD Budget Authority Trends by Title, FY1985-2005 . . . . . . . . . . . 12

Figure 3. DOD Active Duty End-Strength Levels, FY1987-2005,

Selected Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Figure 4: Department of Defense Active Duty Personnel Levels, FY1950-2005 14

Figure 5: National Defense Outlays, FY1910-2005 . . . . . . . . . . . . . . . . . . . . . 20

Figure 6: National Defense Budget Authority and Outlays, FY1947-2005 . . . . 20

Figure 7: National Defense Outlays, Percentage of GNP/GDP, FY1910-2005 . 21

Figure 8: National Defense Outlays, Percentage of GDP, FY1947-2005 . . . . . 21

Figure 9: National Defense Outlays, Percentage of Total Federal Outlays,

FY1940-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Figure 10: Federal Outlays by Budget Enforcement Act Category,

FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

List of Tables

Table 1. National Defense Budget Function and Department of Defense

Budget, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 2. National Defense Budget Function by Appropriations Title,

Budget Authority, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 3. National Defense Budget Function by Appropriations Title,

Outlays, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Table 4. Department of Defense Budget Authority by Component,

FY1993-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Table 5. Operation Desert Shield/Desert Storm Budget Authority and Outlays . 8

Table 6. National Defense Budget Authority Trends by Appropriations

Title, FY1985-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Table 7. Department of Defense Personnel Levels, Selected Years . . . . . . . . . 13

Table 8. Department of Defense Active Duty Personnel Levels, FY1950-2005 14

Table 9. U.S. Military Force Structure, FY1980-2001 . . . . . . . . . . . . . . . . . . 15

Table 10. Real Growth/Decline in National Defense Funding, FY1940-2005 . . 16

Table 11. National Defense Outlays as a Percentage of GNP/GDP,

FY1910-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 12. Allocation of Federal Outlays by Budget Enforcement Act

Category, FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 13. Allocation of Federal Outlays by Budget Enforcement Act

Category, FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Table 14. Trends in Department of Defense Future-Years Defense Plans . . . . . 25

Defense Budget for FY2001:

Data Summary

Introduction

This report is designed to be a readily accessible source of facts and figures on

the FY2001 national defense budget. Part I provides basic data on the Clinton

Administration’s FY2001 national defense budget request, including data on budget

authority and outlays for the Department of Defense (DOD) and for the national

defense budget function (Function 050). Part II shows trends in overall defense

spending, including figures on the growth and decline of defense spending, defense

outlays as a share of total federal expenditures, and defense outlays as a share of gross

domestic product. Part III defines key defense budget terms.

The significance of long-term defense spending trends depends to a large extent

on how budgetary data are interpreted. For example, while defense outlays are at

historically low levels as a percentage of total federal outlays, this trend depends as

much on increases in other areas of the federal budget as on decreases in defense

spending. Also, while defense outlays as a percentage of GDP are at their lowest

levels since before World War II, in real dollar terms they remain almost equal to

average peacetime defense outlays during the Cold War.

To reflect trends in the regular defense program, most of the data included in this

report exclude costs of Operation Desert Shield/Desert Storm, which were largely

financed by allied contributions.

CRS annually prepares a number of issue briefs and reports on specific weapon

programs and other defense issues, including:

Appropriations for FY2001: Defense, CRS Report RL30205

Appropriations for FY2001: Military Construction, CRS Report RL30210

C-17 Cargo Plane, CRS Issue Brief IB93041

Defense Acquisition Reform: Status and Current Issues, CRS Issue Brief

IB96022

Defense Outsourcing: The OMB Circular A-76 Policy, CRS Report RL30392

F-22 Aircraft, CRS Issue Brief IB87111

F/A-18 E/F Aircraft, CRS Issue Brief IB92035

Joint Strike Fighter (JSF) Program: Background, Status, and Issues, CRS

Report 98-198F

Military Base Closures: Where Do We Stand?, CRS Report RL30440

Military Medical Care Services: Questions and Answers, CRS Issue Brief

IB93103

Military Retirement: Major Legislative Issues, CRS Issue Brief IB85159

CRS-2

National Guard & Reserve Funding, FY1990-00, CRS Report 98-955 F

National Missile Defense: Issues for Congress, CRS Issue Brief IB10034

Navy Attack Submarine Programs: Background and Issues for Congress, CRS

Report RL30045

Navy CVN-77 and CVX Aircraft Carrier Programs: Background and Issues for

Congress, CRS Report 98-359 F

Navy Network-Centric Warfare Concept: Key Programs and Issues for

Congress, CRS Report 98-621 F

Peacekeeping: Issues of US Military Involvement, CRS Issue Brief IB94040

Tactical Aircraft Modernization, CRS Issue Brief IB92115

Theater Air and Missile Defense, CRS Issue Brief IB98028

V-22 Osprey Tilt-Rotor Aircraft, CRS Issue Brief IB86103

Also, for a detailed discussion of the defense budget process, see CRS Report

RL30002, A Defense Budget Primer, by (name redacted) and (name redacted).

CRS-3

Part I: The FY2001 Defense Budget Request

The following section displays basic data on the FY2001 national defense budget

request. Table 1 provides figures for the national defense budget function and the

Department of Defense budget, including figures for budget authority and outlays in

both current and constant dollars. For a definition of terms, see the glossary at the

end of this report.

Tables 2 and 3 show, respectively, budget authority and outlay figures for the

national defense budget function broken down by appropriations title.

Table 4 shows DOD budget authority broken down by military component —

i.e., the military services. Figure 1 graphically displays service shares of DOD budget

authority for FY2001.

Table 5 shows budget authority and outlays associated with Operation Desert

Shield/Desert Storm. In order to reflect accurately trends in defense funding, most

of the data in this report have been adjusted to exclude costs associated with the

Persian Gulf War, since that conflict was largely financed by U.S. allies. Table 5

allows the reader to compare the adjusted data published in this report with

unadjusted data published elsewhere.

CRS-4

Table 1. National Defense Budget Function and Department of Defense Budget, FY1992-2005

(current and constant FY2001 dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual Actual

1992 1993 1994 1995 1996 1997 1998 1999

National Defense Budget Function

Budget Authority

Current year dollars

287.7

Constant FY2001 dollars

352.5

Real growth/decline

Outlays

Current year dollars

286.1

Constant FY2001 dollars

351.3

Real growth/decline

Department of Defense

Budget Authority

Current year dollars

Constant FY2001 dollars

Real growth/decline

Outlays

Current year dollars

Constant FY2001 dollars

Real growth/decline

Est.

2000

Proj.

2001

Proj.

2002

Proj.

2003

293.3 305.4

301.6 305.4

-1.8% +1.3%

309.2

302.7

-0.9%

315.6 323.4 331.7

302.3 302.4 302.8

-0.1% +0.0% +0.1%

281.1

334.7

-5.0%

263.3

306.7

-8.4%

266.3

304.1

-0.8%

266.0

297.5

-2.2%

270.3

295.9

-0.5%

271.3 292.1

290.8 307.0

-1.7% +5.6%

283.9

337.8

-3.8%

278.9

324.0

-4.1%

271.0

309.3

-4.5%

265.2

296.4

-4.2%

270.4

294.9

-0.5%

268.4 274.9 290.6

286.9 288.7 298.8

-2.7% +0.6% +3.5%

274.8

336.6

267.2

318.2

-5.5%

251.4

292.8

-8.0%

255.7

291.9

-0.3%

254.4

284.5

-2.6%

258.0

282.4

-0.7%

258.5 278.4

277.2 292.6

-1.8% +5.5%

274.7

337.2

271.4

322.9

-4.2%

265.8

308.9

-4.3%

258.4

294.9

-4.5%

252.7

282.3

-4.3%

258.2

281.6

-0.3%

256.1 261.4 277.5

273.8 274.5 285.3

-2.8% +0.3% +3.9%

Proj.

2004

Proj.

2005

291.2 298.4 307.4 316.5 330.7

291.2 292.2 295.0 296.6 302.7

-2.6% +0.4% +0.9% +0.5% +2.0%

279.9 291.1

287.9 291.1

-1.6% +1.1%

294.8

288.6

-0.9%

300.9 308.3 316.4

288.2 288.3 288.9

-0.1% +0.0% +0.2%

277.5 284.3 293.0 301.9 315.8

277.5 278.4 281.2 282.8 289.0

-2.7% +0.3% +1.0% +0.6% +2.2%

Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001 , Feb. 2000.

Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.

Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.

Figures exclude Operation Desert Shield/Desert Storm costs and receipts.

Explanation: The National Defense Budget Function (050) is one of the categories of the federal budget. It consists of (1) the Department of Defense (DOD)

budget, which funds all direct DOD military programs, and (2) a number of defense-related programs administered by other agencies, including atomic energy

defense activities of the Department of Energy and civil defense.

CRS-5

Table 2. National Defense Budget Function by Appropriations Title, Budget Authority, FY1992-2005

(current year dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual Actual Actual

1992 1993 1994 1995 1996 1997 1998 1999 2000

Proj.

2001

Proj.

2002

Proj.

2003

Proj.

2004

Proj.

2005

Department of Defense (military activities only)

Military Personnel

78.8

76.0

Operation & Maintenance

85.6

89.2

Procurement

61.0

52.8

RDT&E

36.5

37.8

Military Construction

5.3

4.6

Family Housing

3.7

3.9

Other

3.9

3.0

Subtotal, Department of Defense

274.8 267.2

71.4

88.6

44.1

34.6

6.0

3.5

3.1

251.4

71.6

93.8

43.6

34.5

5.4

3.4

255.7

69.8

93.7

42.4

35.0

6.9

4.3

2.4

254.4

70.3

92.4

42.9

36.4

5.7

4.1

6.1

258.0

69.8

97.2

44.8

37.1

5.5

3.8

0.3

258.5

70.6

105.0

50.9

38.3

5.4

3.6

4.6

278.4

73.7

104.9

54.2

38.4

4.8

3.6

0.4

279.9

75.8

109.3

60.3

37.9

4.5

3.5

-0.2

291.1

78.4

107.5

63.0

38.4

4.3

3.7

-0.5

294.8

80.4

109.1

66.7

37.6

3.8

3.9

-0.5

300.9

83.1

112.2

67.7

37.5

4.6

4.0

-0.7

308.3

85.6

114.8

70.9

36.4

5.4

4.1

-0.7

316.4

Department of Energy

Atomic Energy Defense Activities

12.0

12.1

10.9

10.1

10.7

11.4

11.7

12.6

12.2

13.1

13.2

13.4

13.8

13.9

Other Agencies

Defense-Related Activities

1.0

1.8

1.1

0.6

0.9

1.0

1.1

1.2

1.3

1.4

Total, National Defense

287.7

281.1

263.3

266.3

266.0

270.3

271.3

292.1

293.3

305.4

309.2

315.6

323.4

331.7

Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000. Data on Desert

Shield/Desert Storm costs and receipts from DOD Comptroller.

Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.

Excludes Desert Shield/Desert Storm costs and receipts. Totals may not add due to rounding. “Other” includes revolving and management funds, interfund

transactions, proprietary receipts from the public, allowances for proposed legislation, and adjustments in contract authority for Working Capital Funds.

CRS-6

Table 3. National Defense Budget Function by Appropriations Title, Outlays, FY1992-2005

(current year dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual Actual

1992 1993 1994 1995 1996 1997 1998 1999

Est.

2000

Proj.

2001

Proj.

2002

Proj.

2003

Proj.

2004

Proj.

2005

Department of Defense (military activities only)

Military Personnel

78.4

75.8

Operation & Maintenance

80.8

90.1

Procurement

72.7

67.3

RDT&E

34.6

36.9

Military Construction

4.2

4.8

Family Housing

3.3

Other

0.6

-6.9

Subtotal, DOD

274.7 271.4

73.1

86.8

60.4

34.8

5.0

3.3

2.5

265.8

70.8

90.9

54.3

34.6

6.8

3.6

-2.6

258.4

66.7

88.7

48.5

36.5

6.7

3.8

1.8

252.7

69.7

92.4

47.6

37.0

6.2

4.0

1.2

258.2

69.0

93.5

48.2

37.4

6.0

3.9

-1.9

256.1

69.5

96.4

48.8

37.4

5.5

3.7

0.1

261.4

73.5

103.8

48.0

37.4

4.8

3.8

6.3

277.5

75.1

109.3

51.0

37.7

5.0

3.6

-4.1

277.5

77.8

106.7

54.1

37.5

4.6

3.7

-0.1

284.3

79.9

108.3

60.0

37.3

4.1

3.8

-0.4

293.0

82.6

111.2

63.5

37.1

4.0

3.9

-0.4

301.9

88.6

113.7

66.1

36.5

4.4

4.0

2.5

315.8

Department of Energy

Atomic Energy Defense Activities

10.6

11.0

11.9

11.8

11.6

11.3

12.4

11.9

12.5

12.9

13.1

13.4

13.6

Other Agencies

Defense-Related Activities

0.8

1.5

1.1

0.8

0.9

1.1

1.2

1.3

Total, National Defense

286.1

283.9

278.9

271.0

265.2

270.4

268.4

274.9

290.6

291.2

298.4

307.4

316.5

330.7

Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000. Data on Desert

Shield/Desert Storm costs and receipts from DOD Comptroller.

Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.

Excludes Desert Shield/Desert Storm costs and receipts. Totals may not add due to rounding. “Other” includes revolving and management funds, interfund

transactions, proprietary receipts from the public, allowances for proposed legislation, and contract authority for Working Capital Funds.

CRS-7

Table 4. Department of Defense Budget Authority by Component,

FY1993-2002

(current year dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual

1993 1994 1995 1996 1997 1998 1999

Est.

2000

Req. Proj.

2001 2002

Army

% of DOD Total

64.8 62.5 63.3 64.5 64.4 64.0 68.4 69.5 70.6 74.4

24.2% 24.9% 24.8% 25.4% 25.0% 24.8% 24.6% 24.8% 24.3% 25.2%

Navy/Marine Corps 83.2 78.1 76.9 80.0 79.5 80.7 83.8 87.2 91.7 90.8

% of DOD Total

31.1% 31.1% 30.1% 31.4% 30.8% 31.2% 30.1% 31.2% 31.5% 30.8%

Air Force

% of DOD Total

79.1 74.6 73.9 73.0 73.2 76.3 81.9 81.2 85.3 88.3

29.6% 29.7% 28.9% 28.7% 28.4% 30.0% 29.4% 29.0% 29.3% 30.0%

Defense

Wide/Agencies

% of DOD Total

40.3 36.3 41.6 37.0 40.8 37.6 44.3 41.9 43.5 41.4

15.1% 14.4% 16.3% 14.5% 15.8% 14.5% 15.9% 15.0% 14.9% 14.0%

DOD Total

267.4 251.4 255.7 254.4 258.0 258.5 278.4 279.9 291.1 294.8

Source: Figures FY1993-FY1998 from Department of Defense Comptroller, National Defense

Budget Estimates for FY2000, March, 1999. Figures for FY1999-2002 from the Department of

Defense press release, Feb. 7, 2000.

Notes: Totals may not add due to rounding. Figures for the year preceding the request (FY2000)

represent an estimate and include Administration-proposed supplemental appropriations and

rescissions.

Figure 1. DOD Budget Authority by Component,

FY2001 request

CRS-8

Table 5. Operation Desert Shield/Desert Storm Budget Authority and Outlays

(current year dollars in millions)

Budget Authority

Military Personnel

Operations & Maintenance

Procurement

Research, Development,

Test, & Evaluation

Military Construction

Family Housing

Stock Funds

Allied Cash Contributions

Total Budget Authority

Outlays

Military Personnel

Operations & Maintenance

Procurement

Research, Development,

Test, & Evaluation

Military Construction

Family Housing

Stock Funds

Allied Cash Contributions

Total Outlays

FY1990

FY1991

FY1992

FY1993

FY1994

FY1995

FY1996

FY1997

FY1998

Total

281

1,328

5,824

24,366

5,278

2,409

8,132

1,950

106

8,514

33,826

7,238

184

400

2,028

271

-43,154

-7,311

-5,240

7,357

671

-48,394

2,074

267

1,033

5,382

16,212

-152

2,734

11,152

2,154

114

3,974

2,619

1,142

1,369

147

729

378

8,497

33,736

7,159

182

156

1,462

-1,778

-43,154

-23,440

1,348

-5,240

12,237

429

7,188

259

2,783

166

1,048

510

670

-48,394

1,885

Source: Department of Defense Comptroller.

Notes: Totals may not add due to rounding. Totals in this chart represent only cash outlays and receipts. DOD estimates that the total cost of Operation Desert

Shield/Desert Storm was $61.1 billion, including activities supported through allied in-kind assistance and material losses not replaced.

CRS-9

Part II: Trends in Defense Spending

Part II provides data on trends in the defense budget that may be of particular

interest as Congress considers aspects of U.S. defense policy. In assessing trends,

current levels of spending are often compared to the peak levels reached during the

defense buildup of the 1980s. FY1985 was the peak year in budget authority for

national defense, FY1987 was the peak in the number of military personnel, and

FY1989 was the peak in outlays.

Table 6 shows budget authority by appropriations title for the period FY1985

through FY2005 in inflation-adjusted dollars and calculates real growth or decline

over that period. Figure 2 graphically shows trends in budget authority by title from

FY1985 to FY2005.

Table 7 shows the trend in personnel levels for active duty forces, reserve

forces, and DOD civilians for FY1981 and selected years thereafter. Figure 3

illustrates the trend in active duty military personnel levels. Table 8 and Figure 4

show the trend in total active duty end-strength for FY1950-2005.

Table 9 shows the trend in major elements of force structure (Army and Marine

Corps divisions, Air Force tactical air wings, and Navy ships) for FY1980-2001.

Table 10 shows the trend in total national defense budget authority and outlays

in current and constant FY2001 dollars from FY1940 to FY2005.

Table 11 tracks national defense outlays as a share of gross national product

(GNP) and gross domestic product (GDP) from FY1910 to FY2005.

Figure 5 illustrates the trend in national defense outlays in constant FY2001

dollars from FY1910 to FY2005.

Figure 6 illustrates trends in national defense budget authority and outlays in

constant FY2001 dollars from FY1947 to FY2005.

Figures 7 and 8 illustrate trends in national defense outlays as a percentage of

GNP/GDP from FY1910 to FY2005 and as a percentage of GDP from FY1947 to

FY2005.

Table 12 shows the allocation of outlays by budget enforcement act category in

the federal budget in current year dollars, and Table 13 and Figure 9 show the same

data as percentages of total federal outlays. Figure 10 shows the allocation of federal

outlays in constant FY2001 dollars.

Finally, Table 14 follows the trend in DOD five- and six-year defense plans since

1987.

CRS-10

Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2005

(constant FY2001 dollars in billions)

Fiscal Year

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995 1996

Military Personnel

Operation and Maintenance

Procurement

RDT&E

Military Construction

Family Housing

Other

Subtotal, Department of Defense

111.5

121.9

138.2

45.9

8.1

4.2

6.8

436.4

108.3

116.5

128.1

48.0

7.5

3.9

6.4

418.7

114.5

119.5

107.5

49.4

7.0

4.2

2.5

404.6

113.9

118.7

103.1

48.7

7.0

4.2

0.6

396.2

113.0

119.5

98.7

48.0

7.2

4.2

0.3

390.9

111.5

116.7

97.7

44.9

6.2

3.9

-1.0

379.9

106.7

115.2

78.1

43.2

6.1

3.9

1.5

354.7

103.9

105.8

69.7

42.3

6.1

4.3

4.5

336.6

95.8

107.4

59.0

42.9

5.2

4.4

3.4

318.2

87.8

103.9

48.5

38.5

6.7

3.9

3.6

292.8

85.9 81.9

107.8 105.3

47.1 45.2

37.7 37.5

5.9

7.4

3.7

4.5

3.8

2.7

291.9 284.5

Dept. of Energy Defense-Related

Other Defense-Related

11.1

0.8

10.8

0.6

10.8

0.7

10.8

0.7

10.9

0.8

12.6

0.8

14.5

1.4

14.7

1.2

14.4

2.2

12.7

1.2

11.5

0.6

Total, National Defense

448.4

430.2

416.1

407.7

402.6

393.3

370.5

352.5

334.7

306.7

304.1 297.5

12.0

1.0

CRS-11

Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2005

(constant FY2001 dollars in billions – continued)

Fiscal Year

1997

1998

1999

2000

2001

2002

2003

2004

Real

Growth/ Growth/

Decline Decline

2005 FY85-00 FY85-05

Military Personnel

Operation and Maintenance

Procurement

RDT&E

Military Construction

Family Housing

Other

Subtotal, Department of Defense

80.3

101.7

45.2

38.4

6.1

4.3

6.4

282.4

77.2

104.4

46.7

38.7

5.7

4.0

0.4

277.2

75.8

110.7

52.5

39.6

5.6

3.7

4.7

292.6

76.1

108.7

55.1

39.0

4.9

3.7

0.4

287.9

75.8

109.3

60.3

37.9

4.5

3.5

-0.2

291.1

76.0

105.5

62.0

37.7

4.2

3.7

-0.5

288.6

75.7

105.0

64.4

36.3

3.7

-0.5

288.2

76.0

105.4

64.0

35.4

4.3

3.8

-0.7

288.3

76.0

105.3

65.8

33.7

4.9

3.8

-0.6

288.9

-32%

-11%

-60%

-15%

-40%

-12%

-34%

-32%

-14%

-52%

-27%

-39%

-9%

-34%

Dept. of Energy Defense-Related

Other Defense-Related

12.4

1.1

12.5

1.1

13.2

1.2

12.5

1.2

13.1

1.3

12.9

1.2

12.9

1.2

12.9

1.2

12.7

1.2

+12%

+62%

+14%

+62%

Total, National Defense

295.9

290.8

307.0

301.6

305.4

302.7

302.3

302.4

302.8

-33%

-32%

Sources: Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000; deflators from Department

of Defense, Under Secretary of Defense Comptroller; and CRS calculations.

Notes: Data for FY1990-92 exclude Desert Shield/Desert Storm costs and receipts (see Table 5, above). Totals may not add due to rounding.

CRS-12

Figure 2: DOD Budget Authority Trends by Title,

FY1985-2005

Constant FY2001 $ in Billions

140

120

Operation & Maintenance

100

Military Personnel

Procurement

RDT&E

Other

1985

1990

1995

2000

2005

Fiscal Year

*FY2000-2005, Administration projection. Excludes Desert Storm.

End-Strength in Thousands

Figure 3. DOD Active Duty End-Strength Levels, FY1987-2005,

Selected Years

2,000

1,500

1,000

500

1987

1989

1991

1993

1995

1997

1999

2000

2001

Fiscal Year

Army

Navy

Marine Corps

Air Force

2005

CRS-13

Table 7. Department of Defense Personnel Levels, Selected Years

(end strength/full time equivalents in thousands)

Fiscal Year:

Actual

1981

Actual

1985

Actual

1987

Actual

1989

Actual

1991

Actual

1993

Actual

1995

Actual

1997

Actual

1998

Proj.

2000

Proj.

2001

Proj.

2005

Army

Navy

Marine Corps

Air Force

781

540

191

570

781

571

198

602

781

587

200

607

770

593

197

571

725

571

195

511

572

510

178

444

509

435

174

400

492

396

174

378

484

382

173

367

480

372

173

358

480

372

173

357

480

369

173

352

Total Active

2,082

2,151

2,174

2,130

2,002

1,705

1,519

1,440

1,407

1,382

1373

Selected Reserves

851

1,188

1,151

1,171

1,138

1,058

946

902

881

864

866

836

Total Civilians (FTEs)

947

1,029

1,032

1,023

969

932

822

746

707

661

645

Sources: Active and reserve data for FY2000-2001 from Office of Management and Budget, Budget of the United States Government, FY2001: Appendix, Feb.

2000. Active duty force levels,FY1981-98 from Department of Defense Comptroller, National Defense Budget Estimates for FY2000, March, 1999. All data for

FY2005 from U.S. Department of Defense, briefing materials accompanying the FY2001 budget (mimeo), Feb. 2000. Reserve personnel levels through FY1997

from: U.S. Library of Congress, Congressional Research Service, Defense Budget – FY84: Military Manpower and Compensation Issues, Archived CRS Issue Brief

83052, by (name redacted),

1984; U.S. Library of Congress, Congressional Research Service, Military Manpower and Compensation: FY1992 Budget Issues,

Archived CRS Issue Brief 91026, by (name redacted), 1992; U.S. Department of Defense, Manpower Requirements Report, FY1998, July 1998. Civilian personnel

levels from Office of Management and Budget, Historical Tables: Budget of the United States Government for Fiscal Year 2001, Feb. 2000.

Notes: Figures reflect end strength for active and reserve forces and full time equivalent (FTE) employment levels for civilians. End strength represents force levels

at the end of each fiscal year. FTEs represent total non-overtime hours worked divided by annual compensable hours. Selected reserves do not include Individual

Ready Reserve and Inactive National Guard. Totals may not add due to rounding.

CRS-14

Table 8. Department of Defense Active Duty Personnel Levels,

FY1950-2005

(end-strength in thousands)

1950

1951

1952

1953

1954

1955

1956

1957

1958

1959

1960

1961

1962

1963

1,459

3,249

3,636

3,555

3,302

2,935

2,806

2,796

2,601

2,504

2,476

2,484

2,808

2,700

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

2,687

2,655

3,094

3,377

3,548

3,459

3,065

2,713

2,322

2,252

2,161

2,127

2,081

2,073

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

2,062

2,024

2,050

2,082

2,108

2,124

2,138

2,151

2,169

2,174

2,138

2,130

2,069

2,002

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2005

1,808

1,705

1,610

1,519

1,471

1,440

1,407

1,386

1,382

1,373

Sources: FY2000-FY2005 data from Department of Defense, Briefing material accompanying the

FY2001 budget (mimeo), Feb. 2000; FY1950-1998 data from Under Secretary of Defense

Comptroller, National Defense Budget Estimates for FY2000, Mar. 1999; FY1999 data from Office

of Management and Budget, Budget of the United States Government for FY2001: Appendix, Feb.

2000.

Figure 4: Department of Defense Active Duty

Personnel Levels, FY1950-2005

4,000

1952: 3,636

1968: 3,548

End-Strength in Thousands

3,500

3,000

2,500

1987: 2,174

1960: 2,476

2,000

1975: 2,127

1,500

2005: 1,373

1,000

500

1950

1955

1960

1965

1970

1975

1980

Fiscal Year

1985

1990

1995

2000

2005

CRS-15

Table 9. U.S. Military Force Structure, FY1980-2001

Fiscal

Year

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

Army Divisions

Active

Reserve

Marine Divisions

Active

Reserve

Naval Forces

Carriersb Total Ships

477

491

513

514

524

542

556

569

566

567

546

526

466

434

387

11+1

373

11+1

365

11+1

357

11+1

333

11+1

317

11+1

316

11+1

316

Air Force

Tactical Wingsa

Active

Reserve

7.2

7.6

12.6

7.6

Sources: U.S. Department of Defense, briefing materials accompanying the FY2001 budget request (mimeo), Feb. 2000. U.S. Library

of Congress, Congressional Research Service, U.S./Soviet Military Balance: Statistical Trends, 1980-1989, CRS Report 90-401 RCO,

by John M. Collins and (name redacted), Aug. 6, 1990. U.S. Library of

Congress, Congressional Research Service, U.S. Armed

Forces: Statistical Trends, 1985-1990, CRS Report 91-672 RCO, by John M. Collins and (name redacted), Sep. 6. 1991. U.S.

Department of the Navy (Program Information Center), Listing of U.S. Naval Ship Battle Forces as of 30 September 1993, Washington

1993 and previous editions. Total ships FY2001 estimate from Highlights of the Dept. of Navy FY2001 budget, Feb. 2000, p 2-3.

Notes: Figures for FY2000 and FY2001 are Administration projections.

a. Air Force figures do not include a wing of F-117 aircraft until FY1990.

b. Carrier figures exclude one auxiliary training carrier for FY1980-92 but include one operational reserve training carrier since

FY1995.

CRS-16

Table 10. Real Growth/Decline in National Defense Funding,

FY1940-2005

(current and constant FY2001 dollars in billions)

Fiscal

Year

Budget Authority

Constant

Real

Current FY2001 Growth/

Dollars

Decline

1940

1941

1942

1943

1944

Outlays

Constant

Current FY2001

Dollars

Real

Growth/

Decline

1.7

6.4

25.7

66.7

79.1

24.9

92.1

334.9

801.5

979.5

+269.8%

+263.6%

+139.3%

+22.2%

1945

1946

1947

1948

1949

39.2

44.0

9.0

9.5

10.9

574.8

523.5

108.4

102.0

119.9

-8.9%

-79.3%

-5.8%

+17.5%

83.0

42.7

12.8

9.1

13.2

1061.6

545.1

149.3

102.3

141.6

+8.4%

-48.7%

-72.6%

-31.5%

+38.4%

1950

1951

1952

1953

1954

16.5

57.8

67.5

56.9

38.7

164.9

455.6

550.5

474.3

340.5

+37.5%

+176.4%

+20.8%

-13.8%

-28.2%

13.7

23.6

46.1

52.8

49.3

146.8

225.6

402.2

446.1

424.3

+3.7%

+53.7%

+78.3%

+10.9%

-4.9%

1955

1956

1957

1958

1959

32.9

35.0

39.4

40.1

45.1

287.6

287.7

309.4

299.0

315.7

-15.5%

+0.0%

+7.5%

-3.3%

+5.6%

42.7

42.5

45.4

46.8

49.0

362.4

342.4

347.3

339.5

339.4

-14.6%

-5.5%

+1.4%

-2.3%

-0.0%

1960

1961

1962

1963

1964

44.3

45.1

50.2

52.1

51.6

304.7

308.1

337.3

342.6

326.8

-3.5%

+1.1%

+9.5%

+1.6%

-4.6%

48.1

49.6

52.3

53.4

54.8

331.7

331.3

350.4

354.6

351.0

-2.3%

-0.1%

+5.7%

+1.2%

-1.0%

1965

1966

1967

1968

1969

50.6

64.4

73.1

77.2

78.5

312.5

364.9

398.2

405.1

395.5

-4.4%

+16.8%

+9.1%

+1.8%

-2.4%

50.6

58.1

71.4

81.9

82.5

320.6

343.4

397.4

433.7

422.6

-8.7%

+7.1%

+15.7%

+9.1%

-2.6%

1970

1971

1972

1973

1974

75.3

72.7

76.4

79.1

81.5

357.3

325.3

313.1

299.2

283.6

-9.7%

-8.9%

-3.7%

-4.5%

-5.2%

81.7

78.9

79.2

76.7

79.3

391.6

356.9

331.3

301.9

289.1

-7.3%

-8.9%

-7.2%

-8.9%

-4.3%

1975

1976

1977

1978

1979

86.2

97.3

110.2

117.2

126.5

274.5

287.7

299.3

295.1

294.0

-3.2%

+4.8%

+4.0%

-1.4%

-0.4%

86.5

89.6

97.2

104.5

116.3

282.9

273.7

276.3

276.5

285.5

-2.1%

-3.2%

+0.9%

+0.1%

+3.3%

CRS-17

Fiscal

Year

Budget Authority

Constant

Real

Current FY2001 Growth/

Dollars

Decline

Outlays

Constant

Current FY2001

Dollars

Real

Growth/

Decline

1980

1981

1982

1983

1984

143.9

180.0

216.5

245.0

265.2

299.1

334.8

371.9

402.8

421.6

+1.7%

+11.9%

+11.1%

+8.3%

+4.7%

134.0

157.5

185.3

209.9

227.4

293.0

306.7

328.8

354.7

369.3

+2.6%

+4.7%

+7.2%

+7.9%

+4.1%

1985

1986

1987

1988

1989

294.7

289.1

287.4

292.0

299.6

448.4

430.2

416.1

407.7

402.6

+6.3%

-4.0%

-3.3%

-2.0%

-1.3%

252.7

273.4

282.0

290.4

303.6

391.6

412.1

413.4

412.0

413.3

+6.0%

+5.3%

+0.3%

-0.3%

+0.3%

1990

1991

1992

1993

1994

301.2

296.2

287.7

281.1

263.3

393.3

370.5

352.5

334.7

306.7

-2.3%

-5.8%

-4.9%

-5.0%

-8.4%

297.9

296.7

286.1

283.9

278.9

393.9

374.9

351.3

337.8

324.0

-4.7%

-4.8%

-6.3%

-3.8%

-4.1%

1995

1996

1997

1998

1999

266.3

266.0

270.3

271.3

292.1

304.1

297.5

295.9

290.8

307.0

-0.8%

-2.2%

-0.5%

-1.7%

+5.6%

271.0

265.2

270.4

268.4

274.9

309.3

296.4

294.9

286.9

288.7

-4.5%

-4.2%

-0.5%

-2.7%

+0.6%

2000

2001

2002

2003

2004

293.3

305.4

309.2

315.6

323.4

301.6

305.4

302.7

302.3

302.4

-1.8%

+1.3%

-0.9%

-0.1%

+0.0%

290.6

291.2

298.4

307.4

316.5

298.8

291.2

292.2

295.0

296.6

+3.5%

-2.6%

+0.4%

+0.9%

+0.5%

2005

331.7

302.8

+0.1%

330.7

302.7

+2.0%

Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United

States Government, Fiscal Year 2001, Feb. 2000; deflators and figures on Desert

Shield/Desert Storm costs and receipts from Under Secretary of Defense Comptroller; CRS

calculations.

Notes: Figures for FY1990 and beyond exclude costs and receipts of Operation Desert

Shield/Desert Storm. Figures for FY1999-2004 reflect Administration projections. No data

are available for budget authority prior to FY1945. The figures for budget authority reflect

one unavoidable statistical discontinuity. Figures prior to FY1976 are from DOD data that

have not been revised to reflect accrual accounting for military retirement in years prior to

its adoption in FY1985. Figures from FY1976 on have been revised by the Office of

Management and Budget to reflect accrual accounting. The difference, however, is relatively

small and does not significantly affect the figures as an indication of trends in national

defense funding.

CRS-18

Table 11. National Defense Outlays as a Percentage of GNP/GDP,

FY1910-2005

(current year dollars in billions)

Fiscal

Year

National

Defense

Outlays

as % of

GNP/GDP

Fiscal

Year

National

Defense

Outlays

1910

1911

1912

1913

1914

0.3

35.3

35.8

39.4

39.6

38.6

0.8%

0.7%

0.8%

1945

1946

1947

1948

1949

83.0

42.7

12.8

9.1

13.2

221.4

222.9

234.9

256.6

271.7

37.5%

19.1%

5.5%

3.5%

4.8%

1915

1916

1917

1918

1919

0.3

0.6

7.1

13.5

40.0

48.3

60.4

76.4

84.0

0.7%

0.6%

1.0%

9.3%

16.1%

1950

1951

1952

1953

1954

13.7

23.6

46.1

52.8

49.3

273.6

321.3

348.9

373.1

378.0

5.0%

7.3%

13.2%

14.2%

13.0%

1920

1921

1922

1923

1924

4.0

2.6

0.9

0.7

0.6

91.5

69.6

74.1

85.1

84.7

4.4%

3.7%

1.3%

0.8%

1955

1956

1957

1958

1959

42.7

42.5

45.4

46.8

49.0

395.3

427.6

450.5

460.6

491.8

10.8%

9.9%

10.1%

10.2%

10.0%

1925

1926

1927

1928

1929

0.6

0.7

93.1

97.0

94.9

97.0

103.1

0.6%

0.7%

1960

1961

1962

1963

1964

48.1

49.6

52.3

53.4

54.8

519.8

530.9

568.6

600.2

642.3

9.3%

9.2%

8.9%

8.5%

1930

1931

1932

1933

1934

0.7

0.6

0.5

90.4

75.8

58.0

55.6

60.5

0.8%

1.0%

1.2%

0.9%

1965

1966

1967

1968

1969

50.6

58.1

71.4

81.9

82.5

688.2

757.2

811.7

870.0

949.4

7.4%

7.7%

8.8%

9.4%

8.7%

1935

1936

1937

1938

1939

0.7

0.9

1.0

1.1

68.9

77.6

86.8

87.9

1.0%

1.2%

1.1%

1.2%

1970

1971

1972

1973

1974

81.7

78.9

79.2

76.7

79.3

1,013.7

1,081.7

1,178.5

1,313.6

1,441.7

8.1%

7.3%

6.7%

5.8%

5.5%

1940

1941

1942

1943

1944

1.7

6.4

25.7

66.7

79.1

96.5

113.9

144.2

180.0

209.0

1.7%

5.6%

17.8%

37.1%

37.9%

1975

1976

1977

1978

1979

86.5

89.6

97.2

104.5

116.3

1,559.2

1,735.9

1,974.6

2,219.5

2,504.9

5.5%

5.2%

4.9%

4.7%

4.6%

GNP/

GDP

GNP/

GDP

Outlays

as % of

GNP/GDP

CRS-19

Fiscal

Year

National

Defense

Outlays

GNP/

GDP

Outlays

as % of

GNP/GDP

1980

1981

1982

1983

1984

Fiscal

Year

National

Defense

Outlays

GNP/

GDP

Outlays

as % of

GNP/GDP

134.0

157.5

185.3

209.9

227.4

2,731.8

3,060.3

3,231.1

3,441.7

3,846.5

4.9%

5.1%

5.7%

6.1%

5.9%

1995

1996

1997

1998

1999

272.1

265.8

270.5

268.5

274.9

7,322.6

7,700.1

8,182.8

8,636.3

9,115.4

3.7%

3.5%

3.3%

3.1%

3.0%

1985

1986

1987

1988

1989

252.7

273.4

282.0

290.4

303.6

4,141.6

4,398.3

4,653.9

5,016.6

5,406.6

6.1%

6.2%

6.1%

5.8%

5.6%

2000

2001

2002

2003

2004

290.6

291.2

298.4

307.4

316.5

9,571.9

10,041.3

10,502.4

10,982.8

11,502.0

3.0%

2.9%

2.8%

1990

1991

1992

1993

1994

299.3

273.3

298.4

291.1

281.6

5,738.4

5,927.9

6,221.7

6,560.9

6,948.8

5.2%

4.6%

4.8%

4.4%

4.1%

2005

330.7

12,084.5

2.7%

Source: CRS calculations based on data from U.S. Office of Management and Budget, Historical

Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000.

Notes: For this and following tables, national defense outlay figures for FY1990 and beyond do not

exclude Operation Desert Shield/Desert Storm costs and receipts, since such the amounts involved

cannot be separated from national economic activity or from total federal outlays. GNP before

1940, GDP thereafter.

CRS-20

Figure 5: National Defense Outlays, FY1910-2005

Constant FY2001 $ in Billions

1,200

1,000

800

600

400

200

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

Fiscal Year

*FY2000-2005: Administration projections.

Figure 6: National Defense Budget Authority and Outlays,

FY1947-2005

Constant FY2001 $ in Billions

500

400

300

200

Budget Authority

100

Outlays

1950

1955

1960

1965

1970

1975

1980

Fiscal Year

*FY2000-2005: Administration projections. Excludes Desert Shield/Desert Storm.

1985

1990

1995

2000

2005

CRS-21

Figure 7: National Defense Outlays, Percentage of

GNP/GDP, FY1910-2005

Percentage of GNP/GDP

40%

30%

20%

10%

1910

1920

1930

1940

1950

1960

1970

1980

1990

2000

Fiscal Year

FY2000-2005: Administration projections

Figure 8: National Defense Outlays, Percentage of GDP,

FY1947-2005

FY1953: 14.2%

14%

Percentage of GDP

12%

FY1968: 9.4%

10%

FY1986: 6.2%

FY1979: 4.6%

FY1948: 3.5%

FY2001: 2.9%

1950

1955

1960

1965

1970

1975

1980

Fiscal Year

*FY2000-2005: Administration projections.

1985

1990

1995

2000

2005

CRS-22

Table 12. Allocation of Federal Outlays by Budget Enforcement Act

Category, FY1962-2005

Fiscal

Year

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

(current year dollars in billions)

Defense

Non-Defense

Discretionary Discretionary Mandatory

Net

Outlays

Interest

52.6

53.7

55.0

51.0

59.0

72.0

82.2

82.7

81.9

79.0

79.3

77.1

80.7

87.6

89.9

97.5

104.6

116.8

134.6

158.0

185.9

209.9

228.0

253.1

273.8

282.5

290.9

304.0

300.1

319.7

302.6

292.4

282.3

273.6

266.0

271.7

270.2

275.5

291.2

292.1

299.2

308.2

317.2

331.4

19.5

21.6

24.1

26.8

31.1

34.5

35.8

34.6

38.4

43.5

49.2

53.3

57.5

70.3

85.6

99.5

114.0

123.1

141.6

149.9

140.0

143.4

151.4

162.6

164.7

161.7

173.5

184.8

200.4

213.6

232.0

248.6

261.6

272.1

268.5

277.2

284.5

299.5

326.3

341.8

351.9

357.1

363.5

369.8

27.9

28.3

31.2

31.8

35.0

40.7

49.1

53.6

61.0

72.8

86.7

98.0

109.7

151.2

169.6

182.3

204.7

221.5

262.2

301.6

334.8

365.3

361.4

401.2

415.9

421.3

448.3

485.9

568.3

596.6

647.7

669.8

715.0

738.0

785.0

808.3

856.7

898.3

951.7

992.8

1,045.6

1,108.3

1,182.9

1,260.5

6.9

7.7

8.2

8.6

9.4

10.3

11.1

12.7

14.4

14.8

15.5

17.3

21.4

23.2

26.7

29.9

35.5

42.6

52.5

68.8

85.0

89.8

111.1

129.5

136.0

138.7

151.8

169.0

184.4

194.5

199.4

198.7

203.0

232.2

241.1

244.0

241.2

229.7

220.3

208.3

198.6

189.3

177.5

163.8

Total

Federal

Outlays

106.8

111.3

118.5

118.2

134.5

157.5

178.1

183.6

195.6

210.2

230.7

245.7

269.4

332.3

371.8

409.2

458.7

504.0

590.9

678.2

745.8

808.4

851.9

946.4

990.5

1,004.1

1,064.5

1,143.7

1,253.2

1,324.4

1,381.7

1,409.5

1,461.9

1,515.8

1,560.6

1,601.3

1,652.6

1,703.0

1,789.6

1,835.0

1,895.3

1,962.9

2,041.1

2,125.5

Source: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government,

Fiscal Year 2001, Feb. 2000.

Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts.

CRS-23

Table 13. Allocation of Federal Outlays by

Budget Enforcement Act Category, FY1962-2005

(percentage of total outlays)

Fiscal

Year

1962

1963

1964

1965

1966

1967

1968

1969

1970

1971

1972

1973

1974

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Defense

Non-Defense

Discretionary Discretionary

Outlays

49.3%

48.2%

46.4%

43.1%

43.9%

45.7%

46.2%

45.0%

41.9%

37.6%

34.4%

31.4%

30.0%

26.4%

24.2%

23.8%

22.8%

23.2%

22.8%

23.3%

24.9%

26.0%

26.8%

26.7%

27.6%

28.1%

27.3%

26.6%

23.9%

24.1%

21.9%

20.7%

19.3%

18.0%

17.0%

16.3%

16.2%

16.3%

15.9%

15.8%

15.7%

15.5%

15.6%

18.3%

19.4%

20.3%

22.7%

23.1%

21.9%

20.1%

18.8%

19.6%

20.7%

21.3%

21.7%

21.3%

21.2%

23.0%

24.3%

24.9%

24.4%

24.0%

22.1%

18.8%

17.7%

17.8%

17.2%

16.6%

16.1%

16.3%

16.2%

16.0%

16.1%

16.8%

17.6%

17.9%

18.0%

17.2%

17.3%

17.2%

17.6%

18.2%

18.6%

18.2%

17.8%

17.4%

Mandatory

Outlays

26.1%

25.4%

26.3%

26.9%

26.0%

25.8%

27.6%

29.2%

31.2%

34.6%

37.6%

39.9%

40.7%

45.5%

45.6%

44.6%

43.9%

44.4%

44.5%

44.9%

45.2%

42.4%

42.0%

42.1%

42.5%

45.3%

45.0%

46.9%

47.5%

48.9%

48.7%

50.3%

50.5%

51.8%

52.7%

53.2%

54.1%

55.2%

56.5%

58.0%

59.3%

Net

Interest

6.5%

6.9%

7.3%

7.0%

6.5%

6.2%

6.9%

7.4%

7.0%

6.7%

7.0%

7.9%

7.0%

7.2%

7.3%

7.7%

8.5%

8.9%

10.1%

11.4%

11.1%

13.0%

13.7%

13.8%

14.3%

14.8%

14.7%

14.4%

14.1%

13.9%

15.3%

15.4%

15.2%

14.6%

13.5%

12.3%

11.4%

10.5%

9.6%

8.7%

7.7%

Defense

Discretionary

73.0%

71.3%

69.5%

65.6%

65.5%

67.6%

69.7%

70.5%

68.1%

64.5%

61.7%

59.1%

58.4%

55.5%

51.2%

49.5%

47.8%

48.7%

51.3%

57.0%

59.4%

60.1%

60.9%

62.4%

63.6%

62.6%

62.2%

60.0%

59.9%

56.6%

54.0%

51.9%

50.1%

49.8%

49.5%

48.7%

47.9%

47.2%

46.1%

46.0%

46.3%

46.6%

47.3%

Source: CRS calculations based on U.S. Office of Management and Budget, Historical Tables: Budget of the

United States Government, Fiscal Year 2001, Feb. 2000.

Note: National defense outlay figures do not exclude Desert Shield/Desert Storm costs and receipts.

CRS-24

Figure 9: National Defense Outlays, Percentage of

Total Federal Outlays, FY1940-2005

Percentage of Federal Outlays

100%

80%

60%

40%

20%

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

Fiscal Year

*FY2000-2005: Administration projections.

Constant FY2001 Dollars in Billions

Figure 10: Federal Outlays by Budget Enforcement Act

Category, FY1962-2005

Net Interest

1,500

Mandatory

1,000

500

Non-Defense Discretionary

Defense Discretionary

1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002

Fiscal Year

*FY2000-2005, Administration projection.

CRS-25

Table 14. Trends in Department of Defense Future-Years Defense Plans

(budget authority, current year dollars in billions)

FY Admin. Request

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

FY1987, 2/86

FY1988, 1/87

FY1989, 2/88

Reagan FY1990

Bush FY1990

FY1991, 1/90

FY1992, 2/91

FY1993, 1/92

FY1994, 3/93

FY1995, 2/94

FY1996, 2/95

FY1997, 3/96

FY1998, 2/97

FY1999, 2/98

FY2000, 2/99

FY2001, 2/00

312

282

279

332

303

283

284

354

323

291

290

291

375

344

307

306

296

289

291

293

396

365

324

321

311

295

280

298

284

276

387

342

336

322

300

278

269

275

282

360

351

336

304

278

268

259

267

366

350

308

278

268

251

249

251

312

281

270

248

252

253

256

283

270

240

243

246

252

254

287

275

233

240

243

250

258

241

247

248

251

255

259

253

256

254

256

257

263

278

266

262

263

267

280

277

270

271

286

291

277

274

288

295

284

299

301

308

319

316

Sources: U.S. Department of Defense, Briefing materials accompanying the FY2001 budget (mimeo), Feb. 2001, and prior years’ briefing materials. U.S. Office of Management

and Budget, Historical Tables: Budget of the United States Government, FY2001, Feb. 2000 and prior years. U.S. Office of Management and Budget, Budget Baselines, Historical

Data, and Alternatives for the Future, Jan. 1993.

Notes: Boldface denotes the future-year defense plan projected at the time of the budget submission. Figures for the year immediately preceding the year for which funding is

requested (e.g., FY1987 in the FY1988 request) represent an estimate and may include proposed supplemental appropriations or rescissions. Actual figures reported in following

years may differ because of congressional action on supplemental appropriation requests, transfers of budget authority from one year to another, and/or adjustments in contract

authority for Working Capital Funds. The large discrepancies in year-to-year estimates for FY1991 are due to substantial changes in accounting methods for Operation Desert

Shield/Desert Storm. Though the figures for FY1990-92 presented here have been adjusted to exclude funding for Operation Desert Shield/Desert Storm, these adjustments do not

eliminate all of the discrepancies for FY1991.

CRS-26

Part III: Definitions of Budget Terms

The definitions that follow are taken from Office of Management and Budget and

Department of Defense publications.

Accrual Accounting – as applied to military retired pay, a method of recording costs

designed to reflect the liability of the federal government for the future

retirement costs of military personnel currently on active or reserve duty. First

used in FY1985 in DOD, this method of accounting represents a change from

the earlier practice in which the cost of military retirement was measured in

terms of actual payments to current retirees.

Appropriation – one form of budget authority provided by Congress for the funding

of an agency, department, or program for a given amount of time. An

appropriation provides funds for purposes specifically designated by Congress.

Funds will not necessarily all be spent in the year in which they are initially

provided.

Authorization – establishes or maintains a government program or agency by

defining its scope. Authorizing legislation is normally a prerequisite for

appropriations and may set specific limits on the amount that may be

appropriated for the specified program or agency. An authorization, however,

does not make money available, and sometimes appropriations are made without

having been authorized.

Budget Authority – legal authority for an agency to enter into obligations for the

provision of goods or services. It may be available for one or more years. An

appropriation is one form of budget authority.

Budgetary Resources – used in the context of the Budget Enforcement Act of 1997

deficit reduction process, it refers to funds subject to automatic spending

reductions. For defense programs only, these funds are made up of the sum of

new budget authority and unobligated balances of budget authority provided in

prior years.

Current/Constant Dollars – the cost of goods or services in current dollars is the

value in terms of prices current at the time of purchase – current dollars are also

referred to simply as “dollars” or as “then-year dollars.” The cost of goods or

services in constant dollars is the value adjusted to eliminate the effects of

changes in prices (usually due to inflation). Constant dollars, expressed in terms

of an arbitrary reference year (e.g., Fiscal Year 2001 dollars), are determined

by dividing current dollars by a “deflator” based on the prices in the reference

year. Constant dollars are used to assess growth rates of programs

independently of the effects of inflation. Growth rates in constant, inflationadjusted dollars are referred to as “real growth” rates.

Deficit – in the federal budget, the amount by which total federal budget outlays for

a given fiscal year exceed total federal revenues for that year.

CRS-27

Fiscal Year – a fiscal year in the federal government begins on October 1 and ends

on September 30 and is designated by the calendar year in which it ends. Thus,

FY2000 began on October 1, 1999 and will end on September 30, 2000. (Note

that the federal fiscal year ran from July 1 to June 30 until FY1977.)

National Defense Budget Function – one of the categories of the federal budget.

It consists of the Department of Defense (DOD) budget, which funds all direct

DOD military programs, and of a number of defense-related activities

administered by other agencies. These activities include atomic energy defense

activities funded through the Department of Energy, civil defense programs

administered by the Federal Emergency Management Agency, and the Selective

Service System. The DOD budget constitutes more than 95% of the National

Defense Budget Function.

Obligation – an order placed, contract awarded, service agreement undertaken, or

other commitments made by federal agencies during a given period which will

require outlays during the same or some future period.

Outlays – money spent by a federal agency from funds provided by Congress.

Outlays in a given fiscal year are a result of obligations that in turn follow the

provision of budget authority.

Sequester or Sequestration – a term used in the Budget Enforcement Act of 1997,

it refers to the withholding of funds from obligation or expenditure and the

eventual cancellation of new budget authority, new loan guarantee commitments,

new direct loan obligations, and other spending authority as defined in the

Budget Act of 1974. It also results in the reduction of obligation limitations.

Total Obligational Authority – a financial measure unique to DOD, it refers to the

total value of direct defense programs for a fiscal year. Prior to FY1979 it

differed from Budget Authority in significant ways, the largest of which was that

TOA in a given year increased if congressional action led to a transfer of BA

balances from prior years, while BA would not change. Beginning in FY1979,

however, transfers which extend the availability of funds began to be treated as

BA and not only TOA. The current difference between BA and TOA is usually

small and technical.

Unexpended Funds – budget authority that has been appropriated by Congress, but

remains unspent, representing future outlays. Unexpended funds, whether

obligated or as yet unobligated, are formally appropriated by Congress for

specific programs.

Unobligated Funds – budget authority that has been appropriated by Congress for

specific programs but that has not yet been pledged or obligated by contract

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