Defense Budget for FY2001: Data Summary

Defense Budget for FY2001: Data Summary

Order Code RL30447
CRS Report for Congress
Received through the CRS Web
Defense Budget for FY2001:
Data Summary
February 23, 2000
(name redacted)
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division
(name redacted)
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

ABSTRACT
This report presents basic information on the U.S. defense budget. It provides figures on the
Clinton Administration’s FY2001 national defense budget request, including data on budget
authority and outlays for the Department of Defense and for the national defense budget
function. It also provides figures on historical trends in overall defense spending, including
data on the growth and decline of defense spending, on defense outlays as a share of federal
expenditures, and on defense outlays as a share of gross domestic product. It also defines key
defense budget terms. This report will be updated with the next President’s budget request
in February 2001.

Defense Budget for FY2001:
Data Summary
Summary
This 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 Clinton
Administration’s FY2001 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, and on defense outlays as a share of gross domestic product.
Part III defines key defense budget terms.
Among the trends reflected in these data, several stand out.
! The Clinton Administration is requesting $305.4 billion in new
budget authority for national defense in FY2001 (see Table 1), which
represents an increase of 1.3 percent in real, inflation-adjusted dollars
from the FY2000 level.
! Budget authority for national defense (including DOD military
functions and defense-related activities of other federal agencies)
declined by 33 percent, adjusted for inflation, between FY1985, the
peak of the 1980s buildup, and FY2000. (See Table 6.) Under
Administration projections, funding for national defense will stay flat,
adjusted for inflation, through FY2005.
! Funding for weapons procurement has been in decline since FY1985,
bottoming out in FY1997 at $45.2 billion in constant FY2001
dollars. Between FY1985 and FY2000, procurement funding
declined much more rapidly than the defense budget as a whole,
falling by 60%. Under Administration plans, it will increase over the
next few years. (See Figure 2.)
! Under Administration projections for FY2001, outlays for national
defense will constitute 2.9 percent of gross domestic product (GDP)
(see Table 11 and Figure 8) and 15.6 percent of total federal outlays
(see Table 13 and Figure 9). National defense spending will
represent a smaller share of the economy than at any time since
before World War II. In comparison, during the defense buildup of
the 1980s, national defense spending reached a peak of 6.2 percent
of GDP in FY1986 and 27.1 percent of total federal outlays in
FY1987. While defense outlays are at historically low levels as a
percentage of total federal outlays, this trend depends as much on
increases in other areas of the federal budget – especially in Social
Security, Medicare, and other entitlements – as on decreases in
defense spending.
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 FY2001 Defense Budget Request . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Part II: Trends in Defense Spending . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Part III: Definitions of Budget Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
List of Figures
Figure 1. DOD Budget Authority by Component, FY2001 request . . . . . . . . . . 7
Figure 2: DOD Budget Authority Trends by Title, FY1985-2005 . . . . . . . . . . . 12
Figure 3. DOD Active Duty End-Strength Levels, FY1987-2005,
Selected Years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 4: Department of Defense Active Duty Personnel Levels, FY1950-2005 14
Figure 5: National Defense Outlays, FY1910-2005 . . . . . . . . . . . . . . . . . . . . . 20
Figure 6: National Defense Budget Authority and Outlays, FY1947-2005 . . . . 20
Figure 7: National Defense Outlays, Percentage of GNP/GDP, FY1910-2005 . 21
Figure 8: National Defense Outlays, Percentage of GDP, FY1947-2005 . . . . . 21
Figure 9: National Defense Outlays, Percentage of Total Federal Outlays,
FY1940-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Figure 10: Federal Outlays by Budget Enforcement Act Category,
FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
List of Tables
Table 1. National Defense Budget Function and Department of Defense
Budget, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Table 2. National Defense Budget Function by Appropriations Title,
Budget Authority, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 3. National Defense Budget Function by Appropriations Title,
Outlays, FY1992-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, FY1985-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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, FY1940-2005 . . 16
Table 11. National Defense Outlays as a Percentage of GNP/GDP,
FY1910-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table 12. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Table 13. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Table 14. Trends in Department of Defense Future-Years Defense Plans . . . . . 25

Defense Budget for FY2001:
Data Summary
Introduction
This report is designed to be a readily accessible source of facts and figures on
the FY2001 national defense budget. Part I provides basic data on the Clinton
Administration’s FY2001 national defense budget request, including data on budget
authority and outlays for the Department of Defense (DOD) and for the national
defense budget function (Function 050). Part II shows trends in overall defense
spending, including figures on the growth and decline of defense spending, defense
outlays as a share of total federal expenditures, and defense outlays as a share of gross
domestic product. 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 depends as
much on increases in other areas of the federal budget as on decreases in defense
spending. Also, while defense outlays as a percentage of GDP are at their lowest
levels since before World War II, in real dollar terms they remain almost equal to
average peacetime defense outlays during the Cold War.
To reflect trends in the regular defense program, most of the data included in this
report exclude costs of Operation Desert Shield/Desert Storm, which were largely
financed by allied contributions.
CRS annually prepares a number of issue briefs and reports on specific weapon
programs and other defense issues, including:
Appropriations for FY2001: Defense, CRS Report RL30205
Appropriations for FY2001: Military Construction, CRS Report RL30210
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
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
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

CRS-2
National Guard & Reserve Funding, FY1990-00, CRS Report 98-955 F
National Missile Defense: Issues for Congress, CRS Issue Brief IB10034
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 98-359 F
Navy Network-Centric Warfare Concept: Key Programs and Issues for
Congress, CRS Report 98-621 F
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 redacted) and (name redacted).

CRS-3
Part I: The FY2001 Defense Budget Request
The following section displays basic data on the FY2001 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
both current and constant dollars. 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 service shares of DOD budget
authority for FY2001.
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, FY1992-2005
(current and constant FY2001 dollars in billions)

Actual Actual Actual Actual Actual Actual Actual Actual
Est.
Proj.
Proj.
Proj.
Proj.
Proj.
Fiscal Year:
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
National Defense Budget Function
Budget Authority
Current year dollars
287.7
281.1
263.3
266.3
266.0
270.3
271.3
292.1
293.3
305.4
309.2
315.6
323.4
331.7
Constant FY2001 dollars
352.5
334.7
306.7
304.1
297.5
295.9
290.8
307.0
301.6
305.4
302.7
302.3
302.4
302.8
Real growth/decline
-5.0%
-8.4%
-0.8%
-2.2%
-0.5%
-1.7%
+5.6%
-1.8%
+1.3%
-0.9%
-0.1%
+0.0%
+0.1%
Outlays
Current year dollars
286.1
283.9
278.9
271.0
265.2
270.4
268.4
274.9
290.6
291.2
298.4
307.4
316.5
330.7
Constant FY2001 dollars
351.3
337.8
324.0
309.3
296.4
294.9
286.9
288.7
298.8
291.2
292.2
295.0
296.6
302.7
Real growth/decline
-3.8%
-4.1%
-4.5%
-4.2%
-0.5%
-2.7%
+0.6%
+3.5%
-2.6%
+0.4%
+0.9%
+0.5%
+2.0%

Department of Defense
Budget Authority
Current year dollars
274.8
267.2
251.4
255.7
254.4
258.0
258.5
278.4
279.9
291.1
294.8
300.9
308.3
316.4
Constant FY2001 dollars
336.6
318.2
292.8
291.9
284.5
282.4
277.2
292.6
287.9
291.1
288.6
288.2
288.3
288.9
Real growth/decline
-5.5%
-8.0%
-0.3%
-2.6%
-0.7%
-1.8%
+5.5%
-1.6%
+1.1%
-0.9%
-0.1%
+0.0%
+0.2%
Outlays
Current year dollars
274.7
271.4
265.8
258.4
252.7
258.2
256.1
261.4
277.5
277.5
284.3
293.0
301.9
315.8
Constant FY2001 dollars
337.2
322.9
308.9
294.9
282.3
281.6
273.8
274.5
285.3
277.5
278.4
281.2
282.8
289.0
Real growth/decline
-4.2%
-4.3%
-4.5%
-4.3%
-0.3%
-2.8%
+0.3%
+3.9%
-2.7%
+0.3%
+1.0%
+0.6%
+2.2%
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001 , Feb. 2000.
Deflators and data on Desert Shield/Desert Storm budget authority and outlays from DOD Comptroller.
Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.
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, FY1992-2005
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual Actual
Proj.
Proj.
Proj.
Proj.
Proj.
Fiscal Year:
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Department of Defense (military activities only)
Military Personnel
78.8
76.0
71.4
71.6
69.8
70.3
69.8
70.6
73.7
75.8
78.4
80.4
83.1
85.6
Operation & Maintenance
85.6
89.2
88.6
93.8
93.7
92.4
97.2
105.0
104.9
109.3
107.5
109.1
112.2
114.8
Procurement
61.0
52.8
44.1
43.6
42.4
42.9
44.8
50.9
54.2
60.3
63.0
66.7
67.7
70.9
RDT&E
36.5
37.8
34.6
34.5
35.0
36.4
37.1
38.3
38.4
37.9
38.4
37.6
37.5
36.4
Military Construction
5.3
4.6
6.0
5.4
6.9
5.7
5.5
5.4
4.8
4.5
4.3
3.8
4.6
5.4
Family Housing
3.7
3.9
3.5
3.4
4.3
4.1
3.8
3.6
3.6
3.5
3.7
3.9
4.0
4.1
Other
3.9
3.0
3.1
3.4
2.4
6.1
0.3
4.6
0.4
-0.2
-0.5
-0.5
-0.7
-0.7
Subtotal, Department of Defense
274.8
267.2
251.4
255.7
254.4
258.0
258.5
278.4
279.9
291.1
294.8
300.9
308.3
316.4
Department of Energy
Atomic Energy Defense Activities
12.0
12.1
10.9
10.1
10.7
11.4
11.7
12.6
12.2
13.1
13.2
13.4
13.8
13.9
Other Agencies
Defense-Related Activities
1.0
1.8
1.1
0.6
0.9
1.0
1.0
1.1
1.2
1.3
1.3
1.3
1.3
1.4
Total, National Defense
287.7
281.1
263.3
266.3
266.0
270.3
271.3
292.1
293.3
305.4
309.2
315.6
323.4
331.7
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000. Data on Desert
Shield/Desert Storm costs and receipts from DOD Comptroller.
Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.
Excludes Desert Shield/Desert Storm costs and receipts. Totals may not add due to rounding. “Other” includes revolving and management funds, interfund
transactions, proprietary receipts from the public, allowances for proposed legislation, and adjustments in contract authority for Working Capital Funds.

CRS-6
Table 3. National Defense Budget Function by Appropriations Title, Outlays, FY1992-2005
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual Actual
Est.
Proj.
Proj.
Proj.
Proj.
Proj.
Fiscal Year:
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Department of Defense (military activities only)
Military Personnel
78.4
75.8
73.1
70.8
66.7
69.7
69.0
69.5
73.5
75.1
77.8
79.9
82.6
88.6
Operation & Maintenance
80.8
90.1
86.8
90.9
88.7
92.4
93.5
96.4
103.8
109.3
106.7
108.3
111.2
113.7
Procurement
72.7
67.3
60.4
54.3
48.5
47.6
48.2
48.8
48.0
51.0
54.1
60.0
63.5
66.1
RDT&E
34.6
36.9
34.8
34.6
36.5
37.0
37.4
37.4
37.4
37.7
37.5
37.3
37.1
36.5
Military Construction
4.2
4.8
5.0
6.8
6.7
6.2
6.0
5.5
4.8
5.0
4.6
4.1
4.0
4.4
Family Housing
3.3
3.3
3.3
3.6
3.8
4.0
3.9
3.7
3.8
3.6
3.7
3.8
3.9
4.0
Other
0.6
-6.9
2.5
-2.6
1.8
1.2
-1.9
0.1
6.3
-4.1
-0.1
-0.4
-0.4
2.5
Subtotal, DOD
274.7
271.4
265.8
258.4
252.7
258.2
256.1
261.4
277.5
277.5
284.3
293.0
301.9
315.8
Department of Energy
Atomic Energy Defense Activities
10.6
11.0
11.9
11.8
11.6
11.3
11.3
12.4
11.9
12.5
12.9
13.1
13.4
13.6
Other Agencies
Defense-Related Activities
0.8
1.5
1.1
0.8
0.9
0.9
1.1
1.1
1.2
1.2
1.3
1.3
1.3
1.3
Total, National Defense
286.1
283.9
278.9
271.0
265.2
270.4
268.4
274.9
290.6
291.2
298.4
307.4
316.5
330.7
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000. Data on Desert
Shield/Desert Storm costs and receipts from DOD Comptroller.
Notes: Figures for the year preceding the request (FY2000) represent an estimate and include Administration-proposed supplemental appropriations and rescissions.
Excludes Desert Shield/Desert Storm costs and receipts. Totals may not add due to rounding. “Other” includes revolving and management funds, interfund
transactions, proprietary receipts from the public, allowances for proposed legislation, and contract authority for Working Capital Funds.

CRS-7
Table 4. Department of Defense Budget Authority by Component,
FY1993-2002
(current year dollars in billions)
Actual Actual Actual Actual Actual Actual Actual
Est.
Req.
Proj.
Fiscal Year:
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Army
64.8
62.5
63.3
64.5
64.4
64.0
68.4
69.5
70.6
74.4
% of DOD Total
24.2% 24.9% 24.8% 25.4% 25.0% 24.8% 24.6% 24.8% 24.3% 25.2%
Navy/Marine Corps
83.2
78.1
76.9
80.0
79.5
80.7
83.8
87.2
91.7
90.8
% of DOD Total
31.1% 31.1% 30.1% 31.4% 30.8% 31.2% 30.1% 31.2% 31.5% 30.8%
Air Force
79.1
74.6
73.9
73.0
73.2
76.3
81.9
81.2
85.3
88.3
% of DOD Total
29.6% 29.7% 28.9% 28.7% 28.4% 30.0% 29.4% 29.0% 29.3% 30.0%
Defense
Wide/Agencies
40.3
36.3
41.6
37.0
40.8
37.6
44.3
41.9
43.5
41.4
% of DOD Total
15.1% 14.4% 16.3% 14.5% 15.8% 14.5% 15.9% 15.0% 14.9% 14.0%
DOD Total
267.4 251.4 255.7 254.4 258.0 258.5 278.4 279.9 291.1 294.8
Source: Figures FY1993-FY1998 from Department of Defense Comptroller, National Defense
Budget Estimates for FY2000, March, 1999. Figures for FY1999-2002 from the Department of
Defense press release, Feb. 7, 2000.
Notes: Totals may not add due to rounding. Figures for the year preceding the request (FY2000)
represent an estimate and include Administration-proposed supplemental appropriations and
rescissions.
Figure 1. DOD Budget Authority by Component,
FY2001 request

CRS-8
Table 5. Operation Desert Shield/Desert Storm Budget Authority and Outlays
(current year dollars in millions)
FY1990
FY1991
FY1992
FY1993
FY1994
FY1995
FY1996
FY1997
FY1998
Total
Budget Authority
Military Personnel
281
5,824
2,409
8,514
Operations & Maintenance
1,328
24,366
8,132
33,826
Procurement
10
5,278
1,950
7,238
Research, Development,
9
69
106
184
Test, & Evaluation
Military Construction
0
35
0
35
Family Housing
0
0
0
0
Stock Funds
400
271
0
671
Allied Cash Contributions
0
-43,154
-5,240
-48,394
Total Budget Authority
2,028
-7,311
7,357
2,074
Outlays
Military Personnel
267
5,382
2,734
114
0
0
0
0
0
8,497
Operations & Maintenance
1,033
16,212
11,152
3,974
1,142
147
51
21
4
33,736
Procurement
1
-152
2,154
2,619
1,369
729
378
44
17
7,159
Research, Development,
5
40
76
45
11
4
1
0
0
182
Test, & Evaluation
Military Construction
0
10
13
7
2
2
1
0
0
35
Family Housing
0
0
0
0
0
0
0
0
0
0
Stock Funds
156
-1,778
1,348
429
259
166
79
11
0
670
Allied Cash Contributions
0
-43,154
-5,240
0
0
0
0
0
0
-48,394
Total Outlays
1,462
-23,440
12,237
7,188
2,783
1,048
510
76
21
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 FY2005 in inflation-adjusted dollars and calculates real growth or decline
over that period. Figure 2 graphically shows trends in budget authority by title from
FY1985 to FY2005.
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. Table 8 and Figure 4
show the trend in total active duty end-strength for FY1950-2005.
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 FY1980-2001.
Table 10 shows the trend in total national defense budget authority and outlays
in current and constant FY2001 dollars from FY1940 to FY2005.
Table 11 tracks national defense outlays as a share of gross national product
(GNP) and gross domestic product (GDP) from FY1910 to FY2005.
Figure 5 illustrates the trend in national defense outlays in constant FY2001
dollars from FY1910 to FY2005.
Figure 6 illustrates trends in national defense budget authority and outlays in
constant FY2001 dollars from FY1947 to FY2005.
Figures 7 and 8 illustrate trends in national defense outlays as a percentage of
GNP/GDP from FY1910 to FY2005 and as a percentage of GDP from FY1947 to
FY2005.
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 FY2001 dollars.
Finally, Table 14 follows the trend in DOD five- and six-year defense plans since
1987.

CRS-10
Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2005
(constant FY2001 dollars in billions)
Fiscal Year
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
Military Personnel
111.5
108.3
114.5
113.9
113.0
111.5
106.7
103.9
95.8
87.8
85.9
81.9
Operation and Maintenance
121.9
116.5
119.5
118.7
119.5
116.7
115.2
105.8
107.4
103.9
107.8
105.3
Procurement
138.2
128.1
107.5
103.1
98.7
97.7
78.1
69.7
59.0
48.5
47.1
45.2
RDT&E
45.9
48.0
49.4
48.7
48.0
44.9
43.2
42.3
42.9
38.5
37.7
37.5
Military Construction
8.1
7.5
7.0
7.0
7.2
6.2
6.1
6.1
5.2
6.7
5.9
7.4
Family Housing
4.2
3.9
4.2
4.2
4.2
3.9
3.9
4.3
4.4
3.9
3.7
4.5
Other
6.8
6.4
2.5
0.6
0.3
-1.0
1.5
4.5
3.4
3.6
3.8
2.7
Subtotal, Department of Defense
436.4
418.7
404.6
396.2
390.9
379.9
354.7
336.6
318.2
292.8
291.9
284.5
Dept. of Energy Defense-Related
11.1
10.8
10.8
10.8
10.9
12.6
14.5
14.7
14.4
12.7
11.5
12.0
Other Defense-Related
0.8
0.6
0.7
0.7
0.8
0.8
1.4
1.2
2.2
1.2
0.6
1.0
Total, National Defense
448.4
430.2
416.1
407.7
402.6
393.3
370.5
352.5
334.7
306.7
304.1
297.5

CRS-11
Table 6. National Defense Budget Authority Trends by Appropriations Title, FY1985-2005
(constant FY2001 dollars in billions – continued)
Real
Real
Growth/
Growth/
Decline
Decline
Fiscal Year
1997
1998
1999
2000
2001
2002
2003
2004
2005 FY85-00 FY85-05
Military Personnel
80.3
77.2
75.8
76.1
75.8
76.0
75.7
76.0
76.0
-32%
-32%
Operation and Maintenance
101.7
104.4
110.7
108.7
109.3
105.5
105.0
105.4
105.3
-11%
-14%
Procurement
45.2
46.7
52.5
55.1
60.3
62.0
64.4
64.0
65.8
-60%
-52%
RDT&E
38.4
38.7
39.6
39.0
37.9
37.7
36.3
35.4
33.7
-15%
-27%
Military Construction
6.1
5.7
5.6
4.9
4.5
4.2
3.7
4.3
4.9
-40%
-39%
Family Housing
4.3
4.0
3.7
3.7
3.5
3.7
3.7
3.8
3.8
-12%
-9%
Other
6.4
0.4
4.7
0.4
-0.2
-0.5
-0.5
-0.7
-0.6
NA
NA
Subtotal, Department of Defense
282.4
277.2
292.6
287.9
291.1
288.6
288.2
288.3
288.9
-34%
-34%
Dept. of Energy Defense-Related
12.4
12.5
13.2
12.5
13.1
12.9
12.9
12.9
12.7
+12%
+14%
Other Defense-Related
1.1
1.1
1.2
1.2
1.3
1.2
1.2
1.2
1.2
+62%
+62%
Total, National Defense
295.9
290.8
307.0
301.6
305.4
302.7
302.3
302.4
302.8
-33%
-32%
Sources: Office of Management and Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000; deflators from Department
of Defense, Under Secretary of Defense Comptroller; and CRS calculations.
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,
FY1985-2005
140
120
Operation & Maintenance
100
Military Personnel
80
60
RDT&E
Procurement
40
Constant FY2001 $ in Billions
Other
20
0
1985
1990
1995
2000
2005
Fiscal Year
*FY2000-2005, Administration projection. Excludes Desert Storm.
Figure 3. DOD Active Duty End-Strength Levels, FY1987-2005,
Selected Years
2,000
1,500
1,000
500
End-Strength in Thousands
0
1987
1989
1991
1993
1995
1997
1999
2000
2001
2005
Fiscal Year
Army
Navy
Marine Corps
Air Force

CRS-13
Table 7. Department of Defense Personnel Levels, Selected Years
(end strength/full time equivalents in thousands)
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Actual
Proj.
Proj.
Proj.
Fiscal Year:
1981
1985
1987
1989
1991
1993
1995
1997
1998
2000
2001
2005
Army
781
781
781
770
725
572
509
492
484
480
480
480
Navy
540
571
587
593
571
510
435
396
382
372
372
369
Marine Corps
191
198
200
197
195
178
174
174
173
173
173
173
Air Force
570
602
607
571
511
444
400
378
367
358
357
352
Total Active
2,082
2,151
2,174
2,130
2,002
1,705
1,519
1,440
1,407
1,382
1,382
1373

Selected Reserves
851
1,188
1,151
1,171
1,138
1,058
946
902
881
864
866
836

Total Civilians (FTEs)
947
1,029
1,032
1,023
969
932
822
746
707
661
645
NA
Sources: Active and reserve data for FY2000-2001 from Office of Management and Budget, Budget of the United States Government, FY2001: Appendix, Feb.
2000. Active duty force levels,FY1981-98 from Department of Defense Comptroller, National Defense Budget Estimates for FY2000, March, 1999. All data for
FY2005 from U.S. Department of Defense, briefing materials accompanying the FY2001 budget (mimeo), Feb. 2000. 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 2001, Feb. 2000.
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. FTEs represent total non-overtime hours worked divided by annual compensable hours. Selected reserves do not include 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
1,459
1964
2,687
1978
2,062
1992
1,808
1951
3,249
1965
2,655
1979
2,024
1993
1,705
1952
3,636
1966
3,094
1980
2,050
1994
1,610
1953
3,555
1967
3,377
1981
2,082
1995
1,519
1954
3,302
1968
3,548
1982
2,108
1996
1,471
1955
2,935
1969
3,459
1983
2,124
1997
1,440
1956
2,806
1970
3,065
1984
2,138
1998
1,407
1957
2,796
1971
2,713
1985
2,151
1999
1,386
1958
2,601
1972
2,322
1986
2,169
2000
1,382
1959
2,504
1973
2,252
1987
2,174
2001
1,382
1960
2,476
1974
2,161
1988
2,138
2005
1,373
1961
2,484
1975
2,127
1989
2,130
1962
2,808
1976
2,081
1990
2,069
1963
2,700
1977
2,073
1991
2,002
Sources: FY2000-FY2005 data from Department of Defense, Briefing material accompanying the
FY2001 budget (mimeo), Feb. 2000; FY1950-1998 data from Under Secretary of Defense
Comptroller, National Defense Budget Estimates for FY2000, Mar. 1999; FY1999 data from Office
of Management and Budget, Budget of the United States Government for FY2001: Appendix, Feb.
2000.
Figure 4: Department of Defense Active Duty
Personnel Levels, FY1950-2005
4,000
1952: 3,636
1968: 3,548
3,500
3,000
2,500
1987: 2,174
1960: 2,476
2,000
1975: 2,127
1,500
2005: 1,373
1,000
End-Strength in Thousands
500
0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Fiscal Year

CRS-15
Table 9. U.S. Military Force Structure, FY1980-2001
Air Force
Fiscal
Army Divisions
Marine Divisions
Naval Forces
Tactical Wingsa
Year
Active
Reserve
Active
Reserve
Carriersb
Total Ships
Active
Reserve
1980
16
8
3
1
13
477
26
11
1981
16
8
3
1
13
491
26
11
1982
16
8
3
1
14
513
26
12
1983
16
8
3
1
14
514
25
12
1984
16
9
3
1
14
524
25
12
1985
17
10
3
1
14
542
25
12
1986
18
10
3
1
14
556
25
12
1987
18
10
3
1
15
569
25
12
1988
18
10
3
1
15
566
25
12
1989
18
10
3
1
15
567
25
12
1990
18
10
3
1
15
546
24
12
1991
16
10
3
1
15
526
22
13
1992
14
10
3
1
14
466
16
13
1993
14
10
3
1
13
434
16
11
1994
12
8
3
1
12
387
13
9
1995
12
8
3
1
11+1
373
13
8
1996
10
8
3
1
11+1
365
13
7
1997
10
8
3
1
11+1
357
13
7
1998
10
8
3
1
11+1
333
13
7
1999
10
8
3
1
11+1
317
13
7.2
2000
10
8
3
1
11+1
316
13
7.6
2001
10
8
3
1
11+1
316
12.6
7.6
Sources: U.S. Department of Defense, briefing materials accompanying the FY2001 budget request (mimeo), Feb. 2000. 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. Total ships FY2001 estimate from Highlights of the Dept. of Navy FY2001 budget, Feb. 2000, p 2-3.
Notes: Figures for FY2000 and FY2001 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,
FY1940-2005
(current and constant FY2001 dollars in billions)
Budget Authority
Outlays
Constant
Real
Constant
Real
Fiscal
Current
FY2001
Growth/
Current
FY2001
Growth/
Year
Dollars
Dollars
Decline
Dollars
Dollars
Decline
1940
1.7
24.9
1941
6.4
92.1
+269.8%
1942
25.7
334.9
+263.6%
1943
66.7
801.5
+139.3%
1944
79.1
979.5
+22.2%
1945
39.2
574.8
83.0
1061.6
+8.4%
1946
44.0
523.5
-8.9%
42.7
545.1
-48.7%
1947
9.0
108.4
-79.3%
12.8
149.3
-72.6%
1948
9.5
102.0
-5.8%
9.1
102.3
-31.5%
1949
10.9
119.9
+17.5%
13.2
141.6
+38.4%
1950
16.5
164.9
+37.5%
13.7
146.8
+3.7%
1951
57.8
455.6
+176.4%
23.6
225.6
+53.7%
1952
67.5
550.5
+20.8%
46.1
402.2
+78.3%
1953
56.9
474.3
-13.8%
52.8
446.1
+10.9%
1954
38.7
340.5
-28.2%
49.3
424.3
-4.9%
1955
32.9
287.6
-15.5%
42.7
362.4
-14.6%
1956
35.0
287.7
+0.0%
42.5
342.4
-5.5%
1957
39.4
309.4
+7.5%
45.4
347.3
+1.4%
1958
40.1
299.0
-3.3%
46.8
339.5
-2.3%
1959
45.1
315.7
+5.6%
49.0
339.4
-0.0%
1960
44.3
304.7
-3.5%
48.1
331.7
-2.3%
1961
45.1
308.1
+1.1%
49.6
331.3
-0.1%
1962
50.2
337.3
+9.5%
52.3
350.4
+5.7%
1963
52.1
342.6
+1.6%
53.4
354.6
+1.2%
1964
51.6
326.8
-4.6%
54.8
351.0
-1.0%
1965
50.6
312.5
-4.4%
50.6
320.6
-8.7%
1966
64.4
364.9
+16.8%
58.1
343.4
+7.1%
1967
73.1
398.2
+9.1%
71.4
397.4
+15.7%
1968
77.2
405.1
+1.8%
81.9
433.7
+9.1%
1969
78.5
395.5
-2.4%
82.5
422.6
-2.6%
1970
75.3
357.3
-9.7%
81.7
391.6
-7.3%
1971
72.7
325.3
-8.9%
78.9
356.9
-8.9%
1972
76.4
313.1
-3.7%
79.2
331.3
-7.2%
1973
79.1
299.2
-4.5%
76.7
301.9
-8.9%
1974
81.5
283.6
-5.2%
79.3
289.1
-4.3%
1975
86.2
274.5
-3.2%
86.5
282.9
-2.1%
1976
97.3
287.7
+4.8%
89.6
273.7
-3.2%
1977
110.2
299.3
+4.0%
97.2
276.3
+0.9%
1978
117.2
295.1
-1.4%
104.5
276.5
+0.1%
1979
126.5
294.0
-0.4%
116.3
285.5
+3.3%

CRS-17
Budget Authority
Outlays
Constant
Real
Constant
Real
Fiscal
Current
FY2001
Growth/
Current
FY2001
Growth/
Year
Dollars
Dollars
Decline
Dollars
Dollars
Decline
1980
143.9
299.1
+1.7%
134.0
293.0
+2.6%
1981
180.0
334.8
+11.9%
157.5
306.7
+4.7%
1982
216.5
371.9
+11.1%
185.3
328.8
+7.2%
1983
245.0
402.8
+8.3%
209.9
354.7
+7.9%
1984
265.2
421.6
+4.7%
227.4
369.3
+4.1%
1985
294.7
448.4
+6.3%
252.7
391.6
+6.0%
1986
289.1
430.2
-4.0%
273.4
412.1
+5.3%
1987
287.4
416.1
-3.3%
282.0
413.4
+0.3%
1988
292.0
407.7
-2.0%
290.4
412.0
-0.3%
1989
299.6
402.6
-1.3%
303.6
413.3
+0.3%
1990
301.2
393.3
-2.3%
297.9
393.9
-4.7%
1991
296.2
370.5
-5.8%
296.7
374.9
-4.8%
1992
287.7
352.5
-4.9%
286.1
351.3
-6.3%
1993
281.1
334.7
-5.0%
283.9
337.8
-3.8%
1994
263.3
306.7
-8.4%
278.9
324.0
-4.1%
1995
266.3
304.1
-0.8%
271.0
309.3
-4.5%
1996
266.0
297.5
-2.2%
265.2
296.4
-4.2%
1997
270.3
295.9
-0.5%
270.4
294.9
-0.5%
1998
271.3
290.8
-1.7%
268.4
286.9
-2.7%
1999
292.1
307.0
+5.6%
274.9
288.7
+0.6%
2000
293.3
301.6
-1.8%
290.6
298.8
+3.5%
2001
305.4
305.4
+1.3%
291.2
291.2
-2.6%
2002
309.2
302.7
-0.9%
298.4
292.2
+0.4%
2003
315.6
302.3
-0.1%
307.4
295.0
+0.9%
2004
323.4
302.4
+0.0%
316.5
296.6
+0.5%
2005
331.7
302.8
+0.1%
330.7
302.7
+2.0%
Sources: U.S. Office of Management and Budget, Historical Tables: Budget of the United
States Government, Fiscal Year 2001, Feb. 2000; deflators and figures on Desert
Shield/Desert Storm costs and receipts from Under Secretary of Defense Comptroller; CRS
calculations.
Notes: Figures for FY1990 and beyond exclude costs and receipts of Operation Desert
Shield/Desert Storm. Figures for FY1999-2004 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,
FY1910-2005
(current year dollars in billions)
National
Outlays
National
Outlays
Fiscal
Defense
GNP/
as % of
Fiscal
Defense
GNP/
as % of
Year
Outlays
GDP
GNP/GDP
Year
Outlays
GDP
GNP/GDP
1910
0.3
35.3
0.8%
1945
83.0
221.4
37.5%
1911
0.3
35.8
0.8%
1946
42.7
222.9
19.1%
1912
0.3
39.4
0.7%
1947
12.8
234.9
5.5%
1913
0.3
39.6
0.7%
1948
9.1
256.6
3.5%
1914
0.3
38.6
0.8%
1949
13.2
271.7
4.8%
1915
0.3
40.0
0.7%
1950
13.7
273.6
5.0%
1916
0.3
48.3
0.6%
1951
23.6
321.3
7.3%
1917
0.6
60.4
1.0%
1952
46.1
348.9
13.2%
1918
7.1
76.4
9.3%
1953
52.8
373.1
14.2%
1919
13.5
84.0
16.1%
1954
49.3
378.0
13.0%
1920
4.0
91.5
4.4%
1955
42.7
395.3
10.8%
1921
2.6
69.6
3.7%
1956
42.5
427.6
9.9%
1922
0.9
74.1
1.3%
1957
45.4
450.5
10.1%
1923
0.7
85.1
0.8%
1958
46.8
460.6
10.2%
1924
0.6
84.7
0.8%
1959
49.0
491.8
10.0%
1925
0.6
93.1
0.6%
1960
48.1
519.8
9.3%
1926
0.6
97.0
0.6%
1961
49.6
530.9
9.3%
1927
0.6
94.9
0.6%
1962
52.3
568.6
9.2%
1928
0.7
97.0
0.7%
1963
53.4
600.2
8.9%
1929
0.7
103.1
0.7%
1964
54.8
642.3
8.5%
1930
0.7
90.4
0.8%
1965
50.6
688.2
7.4%
1931
0.7
75.8
1.0%
1966
58.1
757.2
7.7%
1932
0.7
58.0
1.2%
1967
71.4
811.7
8.8%
1933
0.6
55.6
1.2%
1968
81.9
870.0
9.4%
1934
0.5
60.5
0.9%
1969
82.5
949.4
8.7%
1935
0.7
68.9
1.0%
1970
81.7
1,013.7
8.1%
1936
0.9
77.6
1.2%
1971
78.9
1,081.7
7.3%
1937
0.9
86.8
1.1%
1972
79.2
1,178.5
6.7%
1938
1.0
87.9
1.2%
1973
76.7
1,313.6
5.8%
1939
1.1
87.9
1.2%
1974
79.3
1,441.7
5.5%
1940
1.7
96.5
1.7%
1975
86.5
1,559.2
5.5%
1941
6.4
113.9
5.6%
1976
89.6
1,735.9
5.2%
1942
25.7
144.2
17.8%
1977
97.2
1,974.6
4.9%
1943
66.7
180.0
37.1%
1978
104.5
2,219.5
4.7%
1944
79.1
209.0
37.9%
1979
116.3
2,504.9
4.6%

CRS-19
National
Outlays
National
Outlays
Fiscal
Defense
GNP/
as % of
Fiscal
Defense
GNP/
as % of
Year
Outlays
GDP
GNP/GDP
Year
Outlays
GDP
GNP/GDP
1980
134.0
2,731.8
4.9%
1995
272.1
7,322.6
3.7%
1981
157.5
3,060.3
5.1%
1996
265.8
7,700.1
3.5%
1982
185.3
3,231.1
5.7%
1997
270.5
8,182.8
3.3%
1983
209.9
3,441.7
6.1%
1998
268.5
8,636.3
3.1%
1984
227.4
3,846.5
5.9%
1999
274.9
9,115.4
3.0%
1985
252.7
4,141.6
6.1%
2000
290.6
9,571.9
3.0%
1986
273.4
4,398.3
6.2%
2001
291.2
10,041.3
2.9%
1987
282.0
4,653.9
6.1%
2002
298.4
10,502.4
2.8%
1988
290.4
5,016.6
5.8%
2003
307.4
10,982.8
2.8%
1989
303.6
5,406.6
5.6%
2004
316.5
11,502.0
2.8%
1990
299.3
5,738.4
5.2%
2005
330.7
12,084.5
2.7%
1991
273.3
5,927.9
4.6%
1992
298.4
6,221.7
4.8%
1993
291.1
6,560.9
4.4%
1994
281.6
6,948.8
4.1%
Source: CRS calculations based on data from U.S. Office of Management and Budget, Historical
Tables: Budget of the United States Government, Fiscal Year 2001, Feb. 2000.
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, FY1910-2005
1,200
1,000
800
600
400
Constant FY2001 $ in Billions
200
0 1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
Fiscal Year
*FY2000-2005: Administration projections.
Figure 6: National Defense Budget Authority and Outlays,
FY1947-2005
500
400
300
200
Constant FY2001 $ in Billions
100
Budget Authority
Outlays
0
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Fiscal Year
*FY2000-2005: Administration projections. Excludes Desert Shield/Desert Storm.

CRS-21
Figure 7: National Defense Outlays, Percentage of
GNP/GDP, FY1910-2005
40%
30%
20%
10%
Percentage of GNP/GDP
0%
1910
1920
1930
1940
1950
1960
1970
1980
1990
2000
Fiscal Year
FY2000-2005: Administration projections
Figure 8: National Defense Outlays, Percentage of GDP,
FY1947-2005
FY1953: 14.2%
14%
12%
FY1968: 9.4%
10%
8%
FY1986: 6.2%
6%
Percentage of GDP
4%
FY1979: 4.6%
FY1948: 3.5%
2%
FY2001: 2.9%
0%
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Fiscal Year
*FY2000-2005: Administration projections.

CRS-22
Table 12. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-2005
(current year dollars in billions)
Defense
Non-Defense
Total
Fiscal
Discretionary Discretionary Mandatory
Net
Federal
Year
Outlays
Outlays
Outlays
Interest
Outlays
1962
52.6
19.5
27.9
6.9
106.8
1963
53.7
21.6
28.3
7.7
111.3
1964
55.0
24.1
31.2
8.2
118.5
1965
51.0
26.8
31.8
8.6
118.2
1966
59.0
31.1
35.0
9.4
134.5
1967
72.0
34.5
40.7
10.3
157.5
1968
82.2
35.8
49.1
11.1
178.1
1969
82.7
34.6
53.6
12.7
183.6
1970
81.9
38.4
61.0
14.4
195.6
1971
79.0
43.5
72.8
14.8
210.2
1972
79.3
49.2
86.7
15.5
230.7
1973
77.1
53.3
98.0
17.3
245.7
1974
80.7
57.5
109.7
21.4
269.4
1975
87.6
70.3
151.2
23.2
332.3
1976
89.9
85.6
169.6
26.7
371.8
1977
97.5
99.5
182.3
29.9
409.2
1978
104.6
114.0
204.7
35.5
458.7
1979
116.8
123.1
221.5
42.6
504.0
1980
134.6
141.6
262.2
52.5
590.9
1981
158.0
149.9
301.6
68.8
678.2
1982
185.9
140.0
334.8
85.0
745.8
1983
209.9
143.4
365.3
89.8
808.4
1984
228.0
151.4
361.4
111.1
851.9
1985
253.1
162.6
401.2
129.5
946.4
1986
273.8
164.7
415.9
136.0
990.5
1987
282.5
161.7
421.3
138.7
1,004.1
1988
290.9
173.5
448.3
151.8
1,064.5
1989
304.0
184.8
485.9
169.0
1,143.7
1990
300.1
200.4
568.3
184.4
1,253.2
1991
319.7
213.6
596.6
194.5
1,324.4
1992
302.6
232.0
647.7
199.4
1,381.7
1993
292.4
248.6
669.8
198.7
1,409.5
1994
282.3
261.6
715.0
203.0
1,461.9
1995
273.6
272.1
738.0
232.2
1,515.8
1996
266.0
268.5
785.0
241.1
1,560.6
1997
271.7
277.2
808.3
244.0
1,601.3
1998
270.2
284.5
856.7
241.2
1,652.6
1999
275.5
299.5
898.3
229.7
1,703.0
2000
291.2
326.3
951.7
220.3
1,789.6
2001
292.1
341.8
992.8
208.3
1,835.0
2002
299.2
351.9
1,045.6
198.6
1,895.3
2003
308.2
357.1
1,108.3
189.3
1,962.9
2004
317.2
363.5
1,182.9
177.5
2,041.1
2005
331.4
369.8
1,260.5
163.8
2,125.5
Source: U.S. Office of Management and Budget, Historical Tables: Budget of the United States Government,
Fiscal Year 2001, Feb. 2000.
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, FY1962-2005
(percentage of total outlays)
Defense
Non-Defense
Defense
Fiscal
Discretionary Discretionary
Mandatory
Net
Share
Year
Outlays
Outlays
Outlays
Interest
Discretionary
1962
49.3%
18.3%
26.1%
6.5%
73.0%
1963
48.2%
19.4%
25.4%
6.9%
71.3%
1964
46.4%
20.3%
26.3%
6.9%
69.5%
1965
43.1%
22.7%
26.9%
7.3%
65.6%
1966
43.9%
23.1%
26.0%
7.0%
65.5%
1967
45.7%
21.9%
25.8%
6.5%
67.6%
1968
46.2%
20.1%
27.6%
6.2%
69.7%
1969
45.0%
18.8%
29.2%
6.9%
70.5%
1970
41.9%
19.6%
31.2%
7.4%
68.1%
1971
37.6%
20.7%
34.6%
7.0%
64.5%
1972
34.4%
21.3%
37.6%
6.7%
61.7%
1973
31.4%
21.7%
39.9%
7.0%
59.1%
1974
30.0%
21.3%
40.7%
7.9%
58.4%
1975
26.4%
21.2%
45.5%
7.0%
55.5%
1976
24.2%
23.0%
45.6%
7.2%
51.2%
1977
23.8%
24.3%
44.6%
7.3%
49.5%
1978
22.8%
24.9%
44.6%
7.7%
47.8%
1979
23.2%
24.4%
43.9%
8.5%
48.7%
1980
22.8%
24.0%
44.4%
8.9%
48.7%
1981
23.3%
22.1%
44.5%
10.1%
51.3%
1982
24.9%
18.8%
44.9%
11.4%
57.0%
1983
26.0%
17.7%
45.2%
11.1%
59.4%
1984
26.8%
17.8%
42.4%
13.0%
60.1%
1985
26.7%
17.2%
42.4%
13.7%
60.9%
1986
27.6%
16.6%
42.0%
13.7%
62.4%
1987
28.1%
16.1%
42.0%
13.8%
63.6%
1988
27.3%
16.3%
42.1%
14.3%
62.6%
1989
26.6%
16.2%
42.5%
14.8%
62.2%
1990
23.9%
16.0%
45.3%
14.7%
60.0%
1991
24.1%
16.1%
45.0%
14.7%
59.9%
1992
21.9%
16.8%
46.9%
14.4%
56.6%
1993
20.7%
17.6%
47.5%
14.1%
54.0%
1994
19.3%
17.9%
48.9%
13.9%
51.9%
1995
18.0%
18.0%
48.7%
15.3%
50.1%
1996
17.0%
17.2%
50.3%
15.4%
49.8%
1997
17.0%
17.3%
50.5%
15.2%
49.5%
1998
16.3%
17.2%
51.8%
14.6%
48.7%
1999
16.2%
17.6%
52.7%
13.5%
47.9%
2000
16.3%
18.2%
53.2%
12.3%
47.2%
2001
15.9%
18.6%
54.1%
11.4%
46.1%
2002
15.8%
18.6%
55.2%
10.5%
46.0%
2003
15.7%
18.2%
56.5%
9.6%
46.3%
2004
15.5%
17.8%
58.0%
8.7%
46.6%
2005
15.6%
17.4%
59.3%
7.7%
47.3%
Source: CRS calculations based on U.S. Office of Management and Budget, Historical Tables: Budget of the
United States Government, Fiscal Year 2001, Feb. 2000.
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, FY1940-2005
100%
80%
60%
40%
Percentage of Federal Outlays 20%
0%1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Fiscal Year
*FY2000-2005: Administration projections.
Figure 10: Federal Outlays by Budget Enforcement Act
Category, FY1962-2005
Net Interest
1,500
Mandatory
1,000
500
Non-Defense Discretionary
Constant FY2001 Dollars in Billions
Defense Discretionary
0 1962 1966 1970 1974 1978 1982 1986 1990 1994 1998 2002
Fiscal Year
*FY2000-2005, 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
FY1987, 2/86
312
332
354
375
396
FY1988, 1/87
282
303
323
344
365
387
FY1989, 2/88
279
283
291
307
324
342
360
Reagan FY1990
279
284
290
306
321
336
351
366
Bush FY1990
279
284
290
296
311
322
336
350
FY1991, 1/90
279
284
290
289
295
300
304
308
312
FY1992, 2/91
279
284
291
291
280
278
278
278
281
283
287
FY1993, 1/92
279
284
291
291
298
269
268
268
270
270
275
FY1994, 3/93
279
284
291
291
284
275
259
251
248
240
233
241
FY1995, 2/94
279
284
291
291
284
275
267
249
252
243
240
247
253
FY1996, 2/95
279
284
291
291
284
275
267
251
253
246
243
248
256
266
277
FY1997, 3/96
279
284
291
291
284
275
267
251
256
252
243
248
254
262
270
277
FY1998, 2/97
279
284
291
291
284
275
267
251
256
252
250
251
256
263
270
277
FY1999, 2/98
279
284
291
293
276
282
267
251
256
254
258
255
257
263
271
274
284
FY2000, 2/99
279
284
291
293
276
282
267
251
256
254
258
259
263
267
286
288
299
308
319
FY2001, 2/00
279
284
291
293
276
282
267
251
256
254
258
259
278
280
291
295
301
308
316
Sources: U.S. Department of Defense, Briefing materials accompanying the FY2001 budget (mimeo), Feb. 2001, and prior years’ briefing materials. U.S. Office of Management
and Budget, Historical Tables: Budget of the United States Government, FY2001, Feb. 2000 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.

CRS-26
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.
Budgetary Resources – used in the context of the Budget Enforcement Act of 1997
deficit reduction process, it refers to funds subject to automatic spending
reductions. For defense programs only, these funds are made up of the sum of
new budget authority and unobligated balances of budget authority provided in
prior years.
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 2001 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, inflation-
adjusted 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.

CRS-27
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,
FY2000 began on October 1, 1999 and will end on September 30, 2000. (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.
Sequester or Sequestration – a term used in the Budget Enforcement Act of 1997,
it refers to the withholding of funds from obligation or expenditure and the
eventual cancellation of new budget authority, new loan guarantee commitments,
new direct loan obligations, and other spending authority as defined in the
Budget Act of 1974. It also results in the reduction of obligation limitations.
Total Obligational Authority – a financial measure unique to DOD, it refers to the
total value of direct defense programs for a fiscal year. Prior to FY1979 it
differed from Budget Authority in significant ways, the largest of which was that
TOA in a given year increased if congressional action led to a transfer of BA
balances from prior years, while BA would not change. Beginning in FY1979,
however, transfers which extend the availability of funds began to be treated as
BA and not only TOA. The current difference between BA and TOA is usually
small and technical.
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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