U.S. Military Budget - DoD Base Spending: The U.S. Department of Defense (DoD) has the single largest budget of any government agency in the discretionary budget.
- Last year (FY 2006), Defense Department base budget expenditures were $411 billion, nearly half of net discretionary spending.
- This year (FY 2007), it has increased to $430 billion, still about half.
- Next year (FY 2008), it is projected to grow to $481 billion, or 52%.
This so-called base budget is the basic level needed to keep the DoD in readiness.
U.S. Military Budget - War on Terror Base Spending : The War on Terror (WoT) incurs additional costs by other departments. When added to the DoD base spending, you get:
- $474 billion in FY 2006, which is 56% of net discretionary spending,
- $500 billion in FY 2007, and
- $554 billion in FY 2008, nearly 60% of discretionary spending.
Total base budget for all non DoD/WoT departments is around $370 billion, which stays at the same funding level for all three fiscal years.
FY 2006 Supplemental Funding : The Defense Department base budget also does not include “one time only” costs attributable to the War on Terror, which are submitted as Supplemental Funding.
In FY 2006, an additional $153 billion in Supplemental Funding was added to the base budget - the War on Terror received $120 billion, while $33 billion went primarily for Hurricane Katrina. As a result, 60% of last year's discretionary spending went to DoD/WoT.
FY 2007 Supplemental Funding : For FY 2007, $70 billion has already been approved, while the President’s FY 2008 Budget requests an additional $102 billion. If approved by Congress, total FY 2007 spending for DoD/WoT would be $673 billion, or 64% of the net discretionary budget.
FY 2008 Budget Proposal : For FY 2008, the President has requested the following:
- The Defense Department Base Budget - $481 billion.
- WoT(non-DoD) Base Budget - $73 billion.
- Supplemental Funding for WoT - $145 billion.
Total requested Dod/WoT spending is $699 billion, or 65% of total net Discretionary spending.
Source: OMB FY 2008 President’s Budget Charts and Tables.
Now That You Understand the U.S. Defense Budget, What Does It Mean?: In summary, the total DoD/WoT spending goes from $600 billion to $700 billion in FY 2006-FY 2008, and from 60-65% of total net discretionary spending. The President and the Department of Defense have said this is the minimum they need to continue to wage the War in Iraq and the War on Terror.
Congress now must decide whether they agree on several things:
- Is $600-700 billion enough to achieve the nation's goals in the War on Terror?
- Can the U.S. really afford the cost, given a projected budget deficit at around $250 billion each year?
- Is this really our nation’s highest priority for scarce discretionary funds?
