Summary: In reviewing the military services' operation and maintenance budget requests for fiscal year 1994, GAO identified potential reductions and rescissions totaling about $6.7 billion. The potential reductions cover a variety of functions, everything from spare and repair parts to underseas surveillance and counter-drug efforts. The main reasons for the reductions include the following: An excessive amount of funds remained unobligated from prior years' appropriations. The budget request for fiscal year 1994 included an amount anticipating congressional cuts. The amount of funding that the services expect to receive from other countries was not offset against the fiscal year 1994 budget request. The services implemented cost-saving recommendations for improving inventory management that are not reflected in the fiscal year 1994 budget request. Factors affecting the requested budget amounts changed from the time the budget requests were submitted, and these changed factors reduced the amount of funds needed. The services expect to spend less than the amount of funds requested for the specific purposes used to justify the budgeted amount.
