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DOD Budget: Controls Needed Over Inflation Dividends

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Report Type Reports and Testimonies
Report Date Dec. 14, 1992
Report No. NSIAD-93-62BR
Subject
Summary:

This briefing report discusses the Defense Department's (DOD) key management controls over excess funds that have become available because actual inflation has been less than estimated. DOD has overestimated the funds needed for inflation in fiscal years 1992 and 1993 by more than $3.6 billion. On the basis of the Office of Management and Budget's latest economic assumption, DOD now projects inflation dividends of $2.8 billion from fiscal year 1992 appropriations and $837 million from the funds it requested for fiscal year 1993. GAO believes that if DOD were to improve monitoring of funding needs and periodically report on the impact of changing inflation rates, Congress would have the information needed to adjust for inflation dividends such as those projected for fiscal years 1992 and 1993.

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