战略与国际研究中心-Analysis-of-the-FY-2017-Defense-Budget_48页_5mb

FY 2017 Defense Budget Analysis Summary

Core Content

This report, authored by Todd Harrison and published by the CSIS International Security Program in April 2016, provides an in-depth analysis of the FY 2017 defense budget request. It examines the structure of defense-related funding, the trends in the Department of Defense (DoD) budget, and the implications of these trends for U.S. national security strategy.

Main Points

Total Defense-Related Funding

• The FY 2017 defense budget request totals $905 billion, which is 21% of the total federal budget.
• This includes:
  • $523.9 billion in base DoD discretionary funding
  • $7.9 billion in base DoD mandatory funding
  • $58.8 billion in OCO (Overseas Contingency Operations) supplemental funding
  • $20.5 billion in atomic energy defense activities
  • $8.4 billion in other defense-related activities outside of DoD
  • $179.2 billion in veterans' benefits and services
  • $83.4 billion in amortization payments for unfunded liabilities
  • $22.8 billion in tax expenditures for military and veterans' pay and benefits

Base DoD Budget

• The base discretionary DoD budget for FY 2017 is $523.9 billion, a 1.3% decrease in real terms from FY 2016.
• It aligns with the Budget Control Act (BCA) budget caps, as amended by the Bipartisan Budget Act (BBA) 2015.
• The budget shows a shift in allocation:
  • Increased funding for Operation and Maintenance (O&M) and Research, Development, Test, and Evaluation (RDT&E)
  • Decreased Procurement funding
  • Stable Military Personnel (MILPERS) accounts

Overseas Contingency Operations (OCO) Budget

• The FY 2017 OCO request is $58.8 billion, the same as FY 2016.

• OCO is not subject to BCA caps, making it a tool to increase defense spending without exceeding the caps.

• OCO funding includes:

  • $41.7 billion for Operation Freedom's Sentinel (OFS) in Afghanistan
  • $7.5 billion for Operation Inherent Resolve (OIR) in Iraq and Syria
  • $3.4 billion for the European Reassurance Initiative (ERI)
  • $1.0 billion for the Counter Terrorism Partnerships Fund
  • $5.2 billion for base budget activities

• The report notes that about half of the OCO budget is used for base budget activities, not just incremental costs of ongoing operations.

Other National Defense Funding

• The total defense-related funding includes $285 billion in other government agencies.
• $179.2 billion is requested for veterans' benefits and services, a 7.1% real increase from FY 2016.
• $81.5 billion in annual amortization payments is made to reduce unfunded liabilities in the military retirement and healthcare trust funds.
• $13.2 billion in tax expenditures is allocated for military personnel and $9.6 billion for veterans' benefits.

Budget Control Act (BCA) Caps

• The FY 2017 base discretionary national defense budget is $551.1 billion, matching the BCA caps as amended by BBA 2015.
• However, the projected level of funding from FY 2018 to FY 2021 is expected to exceed the BCA caps by $113 billion, potentially triggering sequestration.
• The administration assumes future budget deals will raise or eliminate the caps, while some Republicans argue that OCO funding should be used to offset base budget reductions.

Historical Context

• Defense spending in inflation-adjusted dollars remains relatively high, comparable to the Reagan buildup and previous wartime peaks.
• However, as a percentage of GDP and federal spending, current defense spending is lower than historical averages, due to the overall growth of the federal budget and the economy.
• The relationship between defense budget and force size has changed over time, with larger budgets not necessarily leading to larger forces.

Key Information

• The Defense Department's FYDP (Future Years Defense Program) is a lagging indicator of budget trajectory, often not reflecting actual future funding levels.
• The OCO budget has become a flexible tool for funding activities that exceed base budget caps.
• The veterans' benefits and services budget has grown significantly under the Obama administration, reaching $212 billion annually by FY 2021.
• Tax expenditures for military and veterans' benefits are substantial, with $13.2 billion and $9.6 billion requested for FY 2017 respectively.

Conclusion

• The FY 2017 defense budget reflects a complex mix of funding sources, including base, OCO, and other national defense-related expenditures.
• The budgetary trends show a shift toward modernization and sustained operations, rather than force expansion.
• The distinction between base and OCO funding has become blurred, with OCO increasingly used to fund non-operational activities.
• The report highlights the need for the next administration to address the unfunded priorities and budgetary sustainability of the U.S. defense program.