Defense Infrastructure: Costs Projected to Increase Between 1997 and 2001

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Report Type	Reports and Testimonies
Report Date	May 31, 1996
Report No.	NSIAD-96-174
Subject	Defense budgets Defense cost control Defense economic analysis Defense procurement Federal agency reorganization Funds management Future budget projections Logistics Military training DBOF Defense Business Operations Fund DOD Future Years Defense Program FYDP Defense appropriations

Summary:

GAO analyzed the infrastructure portion of the Defense Department's (DOD) 1997 Future Years Defense Program, which covers fiscal years 1997-2001, and found that infrastructure costs are projected to rise from $146 billion in 1997 to $155 billion in 2001. Although the infrastructure portion of DOD's budget is projected to decrease from 60 percent in 1997 to 57 percent in 2001, this is primarily because the total military budget is expected to increase at a faster rate than the infrastructure portion. The installation support portion of DOD's infrastructure budget is projected to decline between 1997 and 2001, but all other categories of infrastructure are projected to increase. The combination of operation and maintenance and military personnel appropriations fund about 80 percent of infrastructure activities that can be clearly identified in the Future Years Defense Program. The upshot is that DOD must look to these two appropriations if it plans to spend less on infrastructure activities.

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Defense Infrastructure: Costs Projected to Increase Between 1997 and 2001