Defense Cuts: Where to Start

This article, which appeared in the GAO Journal, No. 4, Winter 1988, discusses what must be done to control defense spending while maintaining national security. Policymakers must decide how to change foreign and national security policy in order to bring U.S. defense programs in line with available resources, since low-level budget cuts have little effect. Budget reductions in prior-year commitments do not show up for several years, and readiness and salary reductions have an immediate impact on outlays, but detract from defense capabilities. Defense spending decisions can be arranged into a hierarchy of influence with foreign policy and national security policy at the top. Political decisions determining the services' missions, sizes, compositions, and budget levels should be made at the foreign policy and national security policy levels, based on overall national needs.