Defense Budget for FY2002: Data Summary, Final Version

Congressional research reportJan 23, 2002

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Order Code RL30976

CRS Report for Congress

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Defense Budget for FY2002:

Data Summary, Final Version

Updated January 23, 2002

*name redacted*

Analyst in National Defense

Foreign Affairs, Defense and Trade

Congressional Research Service ˜ The Library of Congress

Defense Budget for FY2002:

Data Summary, Final Version

Summary

This report outlines the amended FY2002 defense budget request from the Bush

administration, delivered to the Hill in June 2001. The 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 amended Bush Administration FY2002 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, defense

outlays as a share of gross domestic product and foreign military spending. Part III

defines key defense budget terms.

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 FY2002 Defense Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . 3

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

Part III: Definitions of Budget Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

List of Figures

Figure 1. DOD Budget Authority by Component, FY2002 request . . . . . . . . . . 7

Figure 2. DOD Budget Authority Trends by Title, FY1985-2002 . . . . . . . . . . 12

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

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

Figure 4. DOD Active Duty End-Strength Levels, FY1987-2002,

Selected Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Figure 5. National Defense Outlays, FY1910-2006 . . . . . . . . . . . . . . . . . . . . 20

Figure 6. National Defense Budget Authority and Outlays, FY1947-2006 . . . . 20

Figure 7. National Defense Outlays, Percentage of GNP/GDP, FY1910-2006 . 21

Figure 8. National Defense Outlays, Percentage of GDP, FY1947-2006 . . . . . 21

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

FY1940-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Figure 10. Federal Outlays by Budget Enforcement Category,

FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

List of Tables

Table 1. National Defense Budget Function and Department of Defense

Budget, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 2. National Defense Budget Function by Appropriations Title,

Budget Authority, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Table 3. National Defense Budget Function by Appropriations Title,

Outlays, FY1993-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, FY1985-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, FY1940-2006 . . 16

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

FY1910-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 12. Allocation of Federal Outlays by Budget Enforcement Act

Category, FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Table 13. Allocation of Federal Outlays by Budget Enforcement Act

Category, FY1962-2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

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

Table 15. Defense Spending by Top 50 Foreign Nations . . . . . . . . . . . . . . . . . 26

Defense Budget for FY2002:

Data Summary, FinalVersion

Introduction

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

the FY2002 national defense budget. Part I provides basic data on the amended Bush

Administration’s FY2002 national defense budget request of June 2001, including

data on budget authority and outlays for the Department of Defense (DOD) and for

the national defense budget function (Function 050). Operation Desert Shield/Desert

Storm figures are included in Part I. Part II shows trends in national security

personnel and force structure. Also in this section, trends in overall defense spending

are shown – including figures on the growth and decline of defense spending over

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

a share of gross domestic product. A table of military spending by foreign nations is

also included. 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 is more a

reflection of increases in federal entitlement programs – most notably the escalating

costs of Medicare and Social Security – than decreases in defense spending. Also,

while defense outlays as a percentage of GDP are at their lowest levels since World

War II, in constant dollar terms they remain comparable to average peacetime defense

outlays during the Cold War.

These data do not include funds from the FY2001 Emergency Appropriations

Act for Recovery from and Response to Terrorist Attack on the United States (H.R.

2888), which provides $40 billion in emergency spending to be allocated by the

Administration in consultation with Congress. The funds are to be spent for the

following purposes:

! federal, state, and local preparedness for relief from and for responding to the

attack;

! support to counter, investigate and prosecute domestic and international

terrorism;

! increased security for transportation;

! repairing damage to public facilities and transportation systems; and

! supporting national security.

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

programs and other defense issues, including:

CRS-2

Appropriations and Authorization for FY2002: Defense, CRS Report RL31005.

Appropriations for FY2002: Military Construction, CRS Report RL31010

Army Transformation and Modernization: Overview and Issues for Congress,

CRS Report RS20787

Bosnia: U.S. and Allied Military Operations CRS Issue Brief, IB93056

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

Defense Production Act: Purpose and Scope, CRS Report RS20587

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

Kosovo: U.S. and Allied Military Operations, CRS Issue Brief IB10027

Military Base Closures: Time for Another Round?, CRS Report RL30051

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

Military Spending by Foreign Nations: Data from Selected Public Sources,

CRS Report RL30931.

National Guard & Reserve Funding, FY1990-01, CRS Report RS20151

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

Naval Transformation: Background and Issues for Congress, CRS Report

RS20851

Navy Amphibious Shipbuilding Programs: Background and Issues for

Congress, CRS Report RS20862

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 RS20643

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

Congress, CRS Report RS20557

Navy Ship Procurement Rate and the Planned Size of the Navy: Background

and Issues for Congress, CRS Report RS20535

Navy Zumwalt (DD-21) Class Destroyer Program: Background and Issues for

Congress, CRS Report RS20698

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 r edacted)

and (name r edacted).

CRS-3

Part I: The FY2002 Defense Budget Request

The following section displays basic data on the FY2002 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

current and constant dollars and percentages of real growth. 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 shares of DOD budget

authority by Service for the amended FY2002 budget request.

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, FY1993-2006

(current and constant FY2002 dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual Actual

1993 1994 1995 1996 1997 1998 1999 2000

National Defense Budget Function

Budget Authority

Current year dollars

281.1

Constant FY2002 dollars

347.1

Real growth/decline

Outlays

Current year dollars

283.9

Constant FY2002 dollars

349.7

Real growth/decline

Department of Defense

Budget Authority

Current year dollars

267.2

Constant FY2002 dollars

329.9

Real growth/decline

Outlays

Current year dollars

271.4

Constant FY2002 dollars

334.3

Real growth/decline

Est.*

2001

Req.

2002

Proj.

2003

Proj.

2004

Proj.

2005

Proj.

2006

382.5

335.6

-2.6%

263.3

318.0

-8.4%

266.4

315.3

-0.8%

266.2

308.4

-2.2%

270.4

306.6

-0.6%

271.3 292.3 304.1 316.7 343.5 352.8 362.3 372.1

300.8 317.1 322.0 326.0 343.5 344.5 344.6 344.7

-1.9% +5.4% +1.5% +1.2% +5.4% +0.3% +0.3% +0.2%

278.9

335.3

-4.1%

271.0

320.3

-4.5%

265.2

306.9

-4.2%

270.4

305.3

-0.5%

268.4 274.9 294.5 303.6 329.8

296.6 298.4 311.7 312.5 329.8

-2.8% +0.6% +4.5% +0.2% +5.5%

251.4

303.6

-8.0%

255.7

302.7

-0.3%

254.6

295.0

-2.5%

258.0

292.6

-0.8%

258.6 278.6 290.5 300.6 327.8 336.9 346.3 356.0 366.0

286.7 302.2 307.5 309.5 327.8 329.0 329.4 329.8 330.1

-2.0% +5.4% +1.8% +0.6% +5.9% +0.4% +0.1% +0.1% +0.1%

265.8

319.7

-4.4%

258.4

305.4

-4.5%

252.7

292.3

-4.3%

258.2

291.5

-0.3%

256.1 261.4 281.2

283.0 283.7 297.7

-2.9% +0.3% +4.9%

288.3 313.9

296.7 313.9

-0.3% +5.8%

335.5 356.5

328.1 339.6

-0.5% +3.5%

366.0 376.2

339.5 339.7

-0.3% +0.1%

319.6 340.5 349.8 359.9

312.6 324.4 324.5 325.0

-0.4% +3.8% +0.3% +0.2%

Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.

2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,

Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.

Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism

supplemental appropriations (H.R. 2888, P.L.107-38). 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, FY1993-2006

(current year dollars in billions)

Fiscal Year:

Actual Actual Actual Actual Actual Actual Actual Actual

1993

1994

1995

1996

1997

1998

1999

2000

Department of Defense (military activities only)

Military Personnel

76.0

71.4

Operation & Maintenance

89.2

88.6

Procurement

52.8

44.1

RDT&E

37.8

34.6

Military Construction

4.6

6.0

Family Housing

3.9

3.5

Other

3.0

3.1

Subtotal, Department of Defense

267.2 251.4

Department of Energy

Atomic Energy Defense Activities

12.1

10.9

Other Agencies

Defense-Related Activities

1.8

1.1

Total, National Defense

281.1 263.3

Est.

2001

Req.

2002

Proj.

2003

Proj.

2004

Proj.

2005

Proj.

2006

71.6

93.8

43.6

34.5

5.4

3.4

255.7

69.8

93.7

42.6

35.0

6.9

4.3

2.4

254.6

70.3

92.4

43.0

36.4

5.7

4.1

6.1

258.0

69.8

97.2

44.8

37.1

5.5

3.8

0.3

258.6

70.6

105.0

51.1

38.3

5.4

3.6

4.6

278.6

73.8

108.8

55.0

38.7

5.1

3.5

5.6

290.5

76.0

112.7

61.9

41.3

5.4

3.7

-0.3

300.6

82.3

125.7

61.6

47.4

5.9

4.1

0.8

327.8

336.9

346.3

356.0

366.0

10.1

10.7

11.4

11.7

12.6

12.4

14.3

14.2

14.4

14.7

15.0

0.6

266.4

0.9

266.2

1.0

270.4

1.0

271.3

1.1

292.3

1.2

304.1

1.5

316.5

1.5

343.5

1.5

352.8

1.5

362.3

1.5

372.2

1.5

382.5

Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.

2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,

Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.

Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism

supplemental appropriations (H.R. 2888, P.L. 107-38). 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-6

Table 3. National Defense Budget Function by Appropriations Title, Outlays, FY1993-2006

Fiscal Year:

(current year dollars in billions)

Actual Actual Actual Actual Actual Actual Actual Actual

1993

1994

1995

1996

1997

1998

1999

2000

Est.

2001

Req

2002

Proj.

2003

Proj.

2004

Proj.

2005

Proj.

2006

Department of Defense (military activities only)

Military Personnel

75.8

73.1

Operation & Maintenance

90.1

86.8

Procurement

67.3

60.4

RDT&E

36.9

34.8

Military Construction

4.8

5.0

Family Housing

3.3

Other

-6.9

2.5

Subtotal, DOD

271.4 265.8

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

76.0

105.9

51.7

37.6

5.1

3.4

1.6

281.2

288.3

313.9

319.6

340.5

349.8

359.9

Department of Energy

Atomic Energy Defense Activities

11.0

11.9

11.8

11.6

11.3

12.4

12.2

12.6

14.1

14.3

14.1

14.4

14.6

Other Agencies

Defense-Related Activities

Total, National Defense

1.5

283.9

1.1

278.9

0.8

271.0

0.9

265.2

0.9

270.4

1.1

268.4

1.1

274.9

1.1

294.5

1.1

303.5

1.5

329.5

1.4

335.6

1.5

356.8

1.5

366.1

1.5

376.2

Sources: Data for FY1993-2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002 , Apr.

2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and Budget,

Budget Analysis Branch, Sept. 2001. Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.

Notes: Figures for the FY2001 include July 2001 supplemental appropriations (H.R. 2216, P.L. 107-20), but exclude the September 2001 counterterrorism

supplemental appropriations (H.R. 2888, P.L. 107-38). 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-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 Actual Est*. Proj.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Army

% of DOD Total

64.8 62.5 63.3 64.5 64.4 64.0 68.4 73.2 73.0 80.1

24.2% 24.9% 24.8% 25.4% 25.0% 24.8% 24.6% 25.2% 24.7% 24.4%

Navy/Marine Corps 83.2 78.1 76.9 80.0 79.5 80.7 83.8 88.8 92.7 98.7

% of DOD Total

31.1% 31.1% 30.1% 31.4% 30.8% 31.2% 30.1% 30.6% 31.4% 30.1%

Air Force

% of DOD Total

79.1 74.6 73.9 73.0 73.2 76.3 81.9 83.1 85.4 95.3

29.6% 29.7% 28.9% 28.7% 28.4% 30.0% 29.4% 28.6% 28.9% 29.1%

Defense

Wide/Agencies

% of DOD Total

40.3 36.3 41.6 37.0 40.8 37.6 44.3 44.5 44.4 53.7

15.1% 14.4% 16.3% 14.5% 15.8% 14.5% 15.9% 15.3% 15.1% 16.4%

DOD Total

267.4 251.4 255.7 254.4 258.0 258.5 278.4 290.5 295.0 327.8

Source: Department of Defense Comptroller, National Defense Budget Estimates for FY2002,

August 2001, Table 6-10.

Notes: Totals may not add due to rounding.

* Figures for FY2001exclude both July and September FY2001 supplemental appropriations.

Figure 1. DOD Budget Authority by

Component, FY2002 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 FY2006 in inflation-adjusted dollars and calculates cumulative real growth

or decline over the FY1985-2002 period. Figure 2 graphically shows trends in

budget authority by title from FY1985 to FY2006.

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. Total active duty endstrength for FY1950-2002 is exhibited in Table 8 and shown from FY1987-2002 in

Figure 4.

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 FY1980-2002.

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

in current and constant FY2002 dollars from FY1940 to FY2006.

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

(GNP) and gross domestic product (GDP) from FY1910 to FY2006.

Figure 5 illustrates the trend in national defense outlays in constant FY2002

dollars from FY1910 to FY2006.

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

constant FY2002 dollars from FY1947 to FY2006.

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

GNP/GDP from FY1910 to FY2006 and as a percentage of GDP from FY1947 to

FY2006.

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 FY2002 dollars.

Table 14 follows the trend in DOD five- and six-year defense plans since 1987.

Finally, Table 15 shows defense spending of the top 50 foreign nations.

CRS-10

Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2006

(constant FY2002 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

118.7

125.1

141.6

47.0

8.3

4.3

6.9

451.8

115.5

119.6

131.3

49.1

7.7

4.0

6.6

433.8

121.9

122.6

110.2

50.5

7.2

4.3

2.5

419.2

121.2

121.8

105.8

49.8

7.2

4.3

0.6

410.7

120.3

122.7

101.2

49.1

7.4

4.3

0.3

405.2

118.6

119.8

100.2

45.9

6.4

3.9

-1.0

393.8

113.5

118.3

80.2

44.3

6.3

4.0

1.5

368.1

110.5

108.7

71.4

43.3

6.2

4.4

4.5

349.1

101.9

110.3

60.5

43.9

5.3

4.5

3.5

329.9

93.4

106.8

49.7

39.4

6.8

3.9

3.5

303.6

91.4 87.2

110.8 108.2

48.3 46.5

38.6 38.4

6.1

7.6

3.8

4.6

3.8

2.6

302.7 295.0

Dept. of Energy Defense-Related

Other Defense-Related

11.5

0.8

11.2

0.7

11.2

0.7

11.2

0.7

11.3

0.9

13.1

0.8

15.0

1.4

15.2

1.2

14.9

2.3

13.2

1.3

12.0

0.7

Total, National Defense

464.2

445.7

431.2

422.6

417.3

407.7

384.6

365.5

347.1

318.0

315.3 308.4

12.4

1.1

CRS-11

Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2006

(constant FY2002 dollars in billions – continued)

Fiscal Year

1997

1998

1999

2000

2001

2002

2003

2004

2005

Real

Growth/

Decline

2006 FY85-01

Military Personnel

Operation and Maintenance

Procurement

RDT&E

Military Construction

Family Housing

Other

Subtotal, Department of Defense

85.3

104.4

46.3

39.3

6.2

4.4

6.5

292.6

81.8

107.1

47.8

39.6

5.9

4.1

0.4

286.7

80.3

113.5

53.8

40.4

5.7

3.8

4.8

302.2

80.6

114.9

57.0

40.2

5.3

3.7

5.7

308.3

80.2

115.2

63.0

42.0

5.5

3.8

-0.3

309.5

82.3

125.7

61.6

47.4

5.9

4.1

0.9

327.9

329.0

329.4

329.8

330.1

-32%

-8%

-56%

-10%

-33%

-12%

-32%

Dept. of Energy Defense-Related

Other Defense-Related

12.9

1.1

13.0

1.1

13.7

1.2

13.7

1.2

14.7

1.5

14.2

1.5

14.1

1.5

13.7

1.5

13.6

1.4

13.5

1.4

+28%

+95%

Total, National Defense

306.6

300.8

317.1

322.0

325.7

343.5

344.5

344.6

344.8

345.0

-30%

Sources: Data for FY1993-FY2000 from U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2002,

Apr. 2001. Data for FY2001-2006 from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001 and U.S. Office of Management and

Budget, Budget Analysis Branch, Sept. 2001 and CRS calculations. Data on Desert Shield/Desert Storm costs and receipts from DOD Comptroller.

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,

FY1985-2002

Constant FY2002 $ in Billions

140

120

Operation & Maintenance

100

Military Personnel

Procurement

RDT&E

Other

1985

1990

1995

2000

Fiscal Year

FY2001 includes 7/01 supplemental, FY2002 request. 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

Actual

2000

Proj.

2001

Proj.

2002

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

482

373

173

356

480

373

173

357

480

373

173

357

Total Active

2,082

2,151

2,174

2,130

2,002

1,705

1,519

1,440

1,407

1,384

1,383

Selected Reserves

851

1,188

1,151

1,171

1,138

1,058

946

902

881

865

864

Total Civilians (FTEs)

947

1,029

1,032

1,023

969

932

822

746

707

660

641

Sources: Active and reserve data for FY2000-2002 from Office of Management and Budget, Budget of the United States Government, FY2002:

Appendix, Apr. 2001. Active duty force levels,FY1981-98 from Department of Defense Comptroller, National Defense Budget Estimates for FY2000,

March, 1999. 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 2002, Apr. 2001.

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. Selected reserves do not include Standby Reserve, 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

2002

1,808

1,705

1,610

1,519

1,471

1,440

1,407

1,386

1,384

1,383

Sources: FY2000-FY2002 data from Office of Management and Budget, Budget of the

United States Government for FY2002: Appendix, Apr. 2001. FY1950-1999 data from

Under Secretary of Defense Comptroller, National Defense Budget Estimates for FY2001,

March 2000.

Figure 4. DOD Active Duty End-Strength

Levels, FY1987-2002, Selected Years

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

2002

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

11+1

313

Air Force

Tactical Wingsa

Active

Reserve

7.2

7.6

12.6

7.6

12.+

7.+

Sources: U.S. Department of Defense, briefing materials accompanying the FY2002 budget request (mimeo), June 2001. 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.

Notes: Figures for FY2002 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,

FY1940-2006

(current and constant FY2002 dollars in billions)

Fiscal

Year

1940

1941

1942

1943

1944

Budget Authority

Constant

Real

Current FY2002 Growth/

Dollars

Decline

Outlays

Constant

Current FY2002

Dollars

1.7

26.4

6.4

97.5

25.7

354.7

66.7

848.7

79.1

1037.3

Real

Growth/

Decline

269.8%

263.6%

139.3%

22.2%

1945

1946

1947

1948

1949

39.2

44.0

9.0

9.5

10.9

599.6

546.0

113.0

106.4

125.1

-8.9%

-79.3%

-5.8%

+17.5%

83.0

42.7

12.8

9.1

13.2

1124.2

577.3

158.1

108.3

149.9

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

172.0

460.3

558.0

486.2

353.3

+37.5%

+167.7%

+21.2%

-12.9%

-27.3%

13.7

23.6

46.1

52.8

49.3

155.4

238.8

417.9

461.6

439.1

3.7%

53.6%

75.0%

10.5%

-4.9%

1955

1956

1957

1958

1959

32.9

35.0

39.4

40.1

45.1

300.2

299.7

322.3

311.6

328.4

-15.1%

-0.1%

+7.5%

-3.3%

+5.4%

42.7

42.5

45.4

46.8

49.0

377.1

356.4

361.1

353.1

352.6

-14.1%

-5.5%

1.3%

-2.2%

-0.1%

1960

1961

1962

1963

1964

44.3

45.1

50.2

52.1

51.6

316.9

320.3

350.5

356.2

339.9

-3.5%

+1.1%

+9.4%

+1.6%

-4.6%

48.1

49.6

52.3

53.4

54.8

344.5

344.0

363.8

368.0

364.1

-2.3%

-0.2%

5.8%

1.2%

-1.1%

1965

1966

1967

1968

1969

50.6

64.4

73.1

77.2

78.5

325.1

378.6

413.0

420.4

410.6

-4.3%

+16.5%

+9.1%

+1.8%

-2.3%

50.6

58.1

71.4

81.9

82.5

333.2

356.3

412.1

449.4

438.1

-8.5%

6.9%

15.7%

9.1%

-2.5%

1970

1971

1972

1973

1974

75.3

72.7

76.4

79.1

81.5

371.5

338.5

325.4

310.9

294.9

-9.5%

-8.9%

-3.9%

-4.4%

-5.2%

81.7

78.9

79.2

76.7

79.3

406.2

370.5

343.6

313.2

299.9

-7.3%

-8.8%

-7.2%

-8.8%

-4.3%

1975

1976

1977

1978

86.2

97.3

110.2

117.2

285.2

298.7

310.6

306.2

-3.3%

+4.7%

+4.0%

-1.4%

86.5

89.6

97.2

104.5

293.4

283.9

286.3

286.5

-2.2%

-3.2%

0.9%

0.1%

CRS-17

Fiscal

Year

1979

Budget Authority

Constant

Real

Current FY2002 Growth/

Dollars

Decline

126.5

304.9

-0.4%

Outlays

Constant

Current FY2002

Dollars

116.3

295.7

Real

Growth/

Decline

3.2%

1980

1981

1982

1983

1984

143.9

180.0

216.5

245.0

265.2

310.3

346.8

384.8

416.5

435.8

+1.8%

+11.7%

+11.0%

+8.3%

+4.6%

134.0

157.5

185.3

209.9

227.4

303.4

317.4

339.5

366.7

381.7

2.6%

4.6%

6.9%

8.0%

4.1%

1985

1986

1987

1988

1989

294.7

289.1

287.4

292.0

299.6

464.2

445.7

431.2

422.6

417.3

+6.5%

-4.0%

-3.2%

-2.0%

-1.3%

252.7

273.4

282.0

290.4

303.6

405.4

426.5

427.9

426.4

427.7

6.2%

5.2%

0.3%

-0.3%

0.3%

1990

1991

301.2

296.2

407.7

384.6

-2.3%

-5.7%

299.3

273.3

409.7

358.1

-4.2%

-12.6%

1992

1993

1994

287.7

281.1

263.3

365.5

347.1

318.0

-4.9%

-5.1%

-8.4%

298.4

291.1

281.6

379.4

358.6

338.7

5.9%

-5.5%

1995

1996

1997

1998

1999

266.3

266.0

270.3

271.3

292.1

315.2

308.2

306.5

300.8

316.9

-0.9%

-2.2%

-0.6%

-1.9%

+5.4%

272.1

265.8

270.5

268.5

274.9

321.5

307.5

305.3

296.7

298.4

-5.1%

-4.4%

-0.7%

-2.8%

0.6%

2000

2001

2002

2003

2004

2005

2006

293.3

316.5

343.5

352.8

362.3

372.1

382.5

310.5

325.8

343.5

344.5

344.6

344.7

345.0

-2.0%

+4.9%

+5.4%

+0.3%

+0.1%

294.5

303.6

329.5

335.6

356.8

366.1

376.2

311.7

312.5

329.5

328.2

339.9

339.6

339.7

4.5%

0.2%

5.4%

-0.4%

3.6%

-0.1%

Sources: FY1940-2000 figures from U.S. Office of Management and Budget, Historical

Tables: Budget of the United States Government, Fiscal Year 2002, Apr. 2001; FY2001-2006

figures from U.S. Office of Management and Budget, FY2002 Mid-Session Review, Aug.

2001 and U.S. Office of Management and Budget, Budget Analysis Branch, Sept. 2001.

Deflators and figures on Desert Shield/Desert Storm costs and receipts from Under Secretary

of Defense Comptroller; and CRS calculations.

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

Shield/Desert Storm. Figures for FY2001 include the July 2001 supplemental appropriations

and exclude the September 2001 counterterrorism supplemental appropriations. FY20022006 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, FY1910-2006

(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

221.3

222.7

234.6

256.4

271.5

37.5%

19.2%

5.5%

3.6%

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

273.4

321.0

348.8

373.4

378.0

5.0%

7.3%

13.2%

14.1%

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

395.2

427.7

450.7

461.1

492.1

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

518.9

531.8

568.5

599.7

641.3

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

687.9

754.2

813.5

868.4

949.2

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

1,013.2

1,081.4

1,181.5

1,308.1

1,442.1

8.1%

7.3%

6.7%

5.9%

5.5%

1940

1941

1942

1943

1944

1.7

6.4

25.7

66.7

79.1

96.7

114.0

144.2

180.1

209.0

1.7%

5.6%

17.8%

37.0%

37.9%

1975

1976

1977

1978

1979

86.5

89.6

97.2

104.5

116.3

1,559.8

1,736.7

1,971.3

2,218.6

2,503.8

5.5%

5.7%

5.6%

5.3%

5.2%

GNP/

GDP

GNP/

GDP

Outlays

as % of

GNP/GDP

CRS-19

Fiscal

Year

National

Defense

Outlays

1980

1981

1982

1983

1984

134.0

157.5

185.3

209.9

227.4

2,732.1

3,061.6

3,228.6

3,440.5

3,839.4

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

7,324.0

7,694.6

8,185.2

8,673.5

9,130.4

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

4,136.6

4,401.4

4,647.0

5,014.7

9,824.4

6.1%

6.2%

6.1%

5.8%

3.1%

2000

2001

2002

2003

2004

294.5

304.0

329.9

335.7

357.0

9,963.0

10,364.0

10,937.0

11,575.0

12,228.0

3.0%

2.9%

3.0%

2.9%

1990

1991

1992

1993

299.3

273.3

298.4

291.1

5,735.6

5,930.4

6,218.6

6,558.4

5.2%

4.6%

4.8%

4.4%

2005

2006

366.6

376.8

12,880.0

13,553.0

2.8%

GNP/

GDP

Outlays

as % of

GNP/GDP

Fiscal

Year

National

Defense

Outlays

GNP/

GDP

Outlays

as % of

GNP/GDP

Source: FY1940-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget

of the United States Government, Fiscal Year 2002, Apr. 2001 and FY2001-2006 figures from U.S.

Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.

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,

FY1910-2006

Constant FY2002 $ in Billions

1200

1000

800

600

400

200

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Fiscal Year

Figure 6. National Defense Budget Authority

and Outlays, FY1947-2006

Constant FY2002 $ in Billions

500

400

300

200

Budget Authority

100

1950

1955

1960

1965

1970

1975

1980

Outlays

1985

1990

Fiscal Year

*FY2001-2006: Administration projections. Excludes Desert Shield/Desert Storm.

1995

2000

2005

CRS-21

Figure 7. National Defense Outlays,

Percentage of GNP/GDP, FY1910-2006

Percentage of GNP/GDP

40%

30%

20%

10%

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000

Fiscal Year

Figure 8. National Defense Outlays,

Percentage of GDP, FY1947-2006

14%

Percentage of GDP

12%

10%

1950

1955

1960

1965

1970

1975

1980

Fiscal Year

*FY2000-2006: Administration projections.

1985

1990

1995

2000

2005

CRS-22

Table 12. Allocation of Federal Outlays by Budget Enforcement

Act Category, FY1962-2006

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

2006

Defense

Discretionary

Outlays

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

295.0

304.0

329.9

335.7

357.0

366.6

376.8

(current year dollars in billions)

Non-Defense

Discretionary Mandatory

Outlays

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

70.4

85.7

99.6

114.1

123.2

141.7

149.9

140.1

143.4

151.4

162.7

164.7

161.7

173.5

184.8

200.5

213.6

231.2

247.0

259.1

271.3

266.7

275.5

281.9

296.5

319.8

347.4

369.5

387.8

395.5

401.9

410.1

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

151.1

169.5

182.2

204.6

221.4

262.1

301.6

334.7

365.2

361.3

401.1

415.9

421.3

448.2

485.8

568.2

596.6

648.5

671.4

717.5

738.8

786.8

810.0

859.4

901.1

950.8

999.3

1,082.2

1,127.8

1,193.5

1,288.8

1,347.6

Net

Interest

Total Federal

Outlays

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

223.2

204.2

180.5

174.1

164.8

151.0

137.1

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

1,702.9

1,788.8

1,854.9

1,962.1

2,025.4

2,110.7

2,208.3

2,271.6

Source: FY1962-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget

of the United States Government, Fiscal Year 2002, Apr. 2001. FY2001-2006 figures from U.S.

Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.

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, FY1962-2006

(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

2006

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%

16.5%

16.4%

16.8%

16.6%

16.9%

16.6%

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%

23.1%

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%

16.7%

17.5%

17.7%

17.9%

17.1%

17.2%

17.1%

17.4%

17.9%

18.7%

18.8%

19.1%

18.7%

18.2%

18.1%

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%

44.5%

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%

47.6%

49.1%

48.7%

50.4%

50.6%

52.0%

52.9%

53.2%

53.9%

55.2%

55.7%

56.5%

58.4%

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%

12.5%

11.0%

9.2%

8.6%

7.8%

6.8%

6.0%

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%

55.4%

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%

59.9%

56.7%

54.2%

52.1%

50.2%

49.9%

49.7%

48.9%

48.2%

48.0%

46.7%

47.2%

46.4%

47.4%

47.7%

47.9%

Source: FY1962-2000 data from U.S. Office of Management and Budget, Historical Tables: Budget

of the United States Government, Fiscal Year 2002, Apr. 2001 and FY2001-2006 figures from U.S.

Office of Management and Budget, FY2002 Mid-Session Review, Aug. 2001.

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,

FY1940-2006

100%

Percentage of Federal Outlays

80%

60%

40%

20%

1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Fiscal Year

FY2000-2006: Administration projections

Figure 10. Federal Outlays by Budget

Enforcement Category, FY1962-2006

Constant FY2002 Dollars in Billions

2,000

Net Interest

1,500

Mandatory

1,000

Non-Defense Discretionary

500

Defense Discretionary

1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006

Fiscal Year

*FY2001-2006, 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

2006

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

FY2002, 6/01*

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

301

277

274

288

295

328

284

299

301

337

308

346

319

316

356

366

Sources: U.S. Department of Defense, Briefing materials accompanying the FY2002 budget (mimeo), June 2001, and prior years’ briefing materials. U.S. Office of Management and Budget,

Historical Tables: Budget of the United States Government, FY2002, Apr. 2001 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.

* In FY2002 – unlike previous years – the numbers beyond FY2002 are not backed up by a detailed Future Years Defense Plan (FYDP). The figures for years beyond FY2002 represent

no real growth, from the FY2002 requested level.

CRS-26

Table 15. Defense Spending by Top 50 Foreign Nations

Country

(current year U.S. dollars in millions)

US Dept. of State:

Rank

WMEAT 1998

Defense

Expenditures

(1997 data)

GDP

IISS:

Military Balance

2000-2001

United States

China — Mainland

Russia

France

Japan

United Kingdom

Germany

Italy

Saudi Arabia

Korea, South

Brazil

China — Taiwan

India

Israel

Australia

Canada

Turkey

Spain

Netherlands

Korea, North

Singapore

Poland

Sweden

Greece

Indonesia

Iran

Mexico

276,300

74,910

41,730

41,520

40,840

35,290

32,870

22,720

21,150

15,020

14,150

13,060

10,850

9,335

8,463

7,800

7,792

7,670

6,839

6,000

5,664

5,598

5,550

5,533

4,812

4,726

4,294

3.3

2.2

5.8

3.0

1.0

2.8

1.6

2.0

14.4

3.4

1.8

4.6

2.8

9.7

2.2

1.3

4.0

1.5

1.9

27.5

5.7

2.3

2.5

4.6

2.3

3.0

1.1

Defense

Expenditures

(1999 data)

275,500

* 39,500

*56,000

37,100

40,800

36,900

31,100

22,000

21,800

12,000

16,000

15,000

14,200

8,900

7,800

10,100

7,300

6,900

2,100

4,700

3,200

5,200

5,300

1,500

5,700

4,300

Ukraine

Switzerland

Argentina

4,285

3,859

3,701

3.8

1.5

1.2

1,400

3,100

5,400

2.9%

1.3%

1.9%

Belgium

3,686

1.5

3,400

1.4%

Colombia

Syria

Vietnam

3,456

3,403

3,387

3.7

5.6

2.8

2,200

1,900

890 E

2.9%

4.9%

3.0%

GDP

2.9%

5.4%

*5.1%

2.7%

0.9%

2.6%

1.6%

2.0%

15.5%

2.9%

2.7%

5.2%

3.2%

8.9%

2.0%

1.2%

5.4%

1.3%

1.8%

14.3%E

5.6%

2.0%

2.3%

4.9%

1.1%

5.2%

0.9%

Pakistan

3,381

5.7

3,500

5.7%

Thailand

Burma (Myanmar)**

Norway

3,380

3,253

2.3

2.1

2,600

*2,000

3,300

1.9%

*6.9%

2.2%

Chile

2,864

3.9

2,700

4.0%

Denmark

Kuwait

Portugal

2,804

2,761

2,389

1.7

7.5

2.4

2,700

3,200

2,300

1.6%

10.8%

2.2%

CRS-27

Country

Uzbekistan

South Africa

United Arab Emirates

Romania

Egypt

Malaysia

Libya**

Nigeria

Rank

US Dept. of State:

WMEAT 1998

Defense

Expenditures

(1997 data)

2,322

2,306

2,285

2,176

2,089

2,001

GDP

1.9

6.8

2.4

2.8

2.2

1.4

IISS:

Military Balance

2000-2001

Defense

Expenditures

(1999 data)

615

1,800

3,200

607

3,000

3,200

1,500 E

2,200 E

GDP

3.9%

1.4%

6.2%

1.8%

3.4%

4.1%

5.8%E

4.4%E

Sources: U.S. Department of State: Bureau of Arms Control, World Military Expenditures and Arms

Transfers: 1998, April 2000. International Institute for Strategic Studies, The Military Balance 2000-2001,

October 2000.

Notes: For information on a total of 167 countries and details on this data, see CRS Report RL30931, Military

Spending by Foreign Nations: Data from Selected Public Sources.

Military spending in this table is defined primarily by the NATO standard definition: cash outlays of central

governments to meet costs of national armed forces. This definition includes military retired pay, which is

excluded in the U.S. Office of Management and Budget’s definition of DOD outlays. Therefore, the U.S.

outlay numbers are higher in this table than the reported DOD outlay numbers in the rest of the report. The

difference in the outlay numbers in this table and the others is military retired pay.

* These estimates are based on purchasing power parity (PPP) estimates. PPPs measure the relative purchasing

power of difference currencies over equivalent goods and services. Proponents of this method argue that it

better accounts for the substantial differences in relative prices for defense goods.

E These data were estimated by IISS and not based on reported data from the individual country.

** Rank ordering is as stated in the Department of State’s, WMEAT report. Rankings are estimated even when

a specific expenditure level is not provided, as in the cases of Libya and Burma.

CRS-28

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.

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 2002 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.

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,

For a complete glossary on defense budget terms, see CRS Report RL30002, A Defense

Budget Primer by (name redacted) and (name redacted).

CRS-29

FY2001 began on October 1, 2001 and will end on September 30, 2002. (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.

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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