New Fiscal Year: New money for Contractors Overseas
U.S. DoD Spending Trends FY 2012-2013
FY 2012
In FY2012, (fiscal year starting October 1, 2011) the DoD was projected to spend a total of $645.7 billion dollars (discretionary). Of this amount, $530.6 billion is Base Request and $115.1 billion is for Overseas Contingency Operations (used to be called Global War on Terror).
In the former FY2012 budget proposed a year ago, the DoD would have received $676.0 billion - thus the budget has been cut by $30.3 billion or 4.5%. Of the $676 billion, $558.2 billion was Base and $117.8 billion for Overseas Contingency Operations.
This means that the budget has been cut by $27.6 billion or 4.9% (Base request) but only by $2.7 billion or 2.3% (OCO request). Evidently, funding for activities overseas is not affected nearly as much as funding for the "regular" U.S. military (Base funding).
FY 2013
Turning to the budget for FY2013, (fiscal year starting October 1, 2012) the DoD is projected to spend a total of $613.9 billion dollars (discretionary). Of this amount, $525.4 billion is Base Request and $88.5 billion is for Overseas Contingency Operations.
A closer look reveals a decrease in the DoD budget of $31.8 billion or -4.9% from FY2012 to FY2013. This reduction is mainly due to a huge drop in OCO funding of $26.6 billion or 23.1% (mainly due to the U.S. bringing back military forces from Afghanistan). The Base Request is only reduced by $5.2 billion or 1%.
The Administration continues to invest in the Nation’s military service members and their families and provides them with the training, equipment, and infrastructure needed to maintain military readiness. The President's 2012 Budget for the Department of Defense (DOD) reflects that commitment, proposing $553 billion - an increase of $22 billion above the 2011 appropriation.
The Budget includes a series of management and acquisition reforms that will produce a net of $78 billion in savings through 2016. Cost-cutting measures include the consolidation of several Air Force operation centers, reduced Army construction costs, and the Navy's use of multi-year procurement strategies.
The incremental costs of funding Overseas Contingency Operations (OCO), including ongoing efforts in Afghanistan and Iraq, are funded separately in the 2012 Budget.
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