Military Operations: Fiscal Year 2003 Obligations Are Substantial, but May Result in Less Obligations Than Expected

The Global War on Terrorism (GWOT)--principally involving operations in Afghanistan and Iraq--is being funded in fiscal year 2003 by Congress's appropriation of almost $69 billion, including almost $16 billion in a transfer fund called the Iraqi Freedom Fund. To assist Congress in its oversight of funding for GWOT, GAO examined the obligation of GWOT funds and the implications for additional funding in fiscal year 2003 and the President's request for fiscal year 2004 funds for several operations in Southwest Asia that were canceled after the budget was submitted.

While funds obligated by DOD for GWOT, including the war with Iraq, in fiscal year 2003 are substantial--about $39 billion through June 2003--the funds appropriated by Congress appear to be sufficient for fiscal year 2003, and some of the services may not obligate all of the funds they were appropriated for fiscal year 2003. For example, at the end of June 2003, with 75 percent of the fiscal year completed, the services' percentage of GWOT operation and maintenance funds that had been obligated ranged from a low of 65 percent for the Army to a high of 78 percent for the Marine Corps. In contrast, the percentage of military personnel funds obligated by the three-fourths of-the-fiscal-year mark by the services ranged from 72 to 75 percent of GWOT appropriations. The military services believe they will obligate all the fiscal year 2003 funds appropriated to them. In addition, the services have received billions of dollars more in transfers from the Iraqi Freedom Fund. But GAO's analysis suggests that they may not need all the funds transferred as well as further transfers in fiscal year 2003 for operation and maintenance, since considerable unobligated fiscal year 2003 funds remain in their direct appropriations. Since DOD terminated Operations Desert Spring and Northern and Southern Watch in Southwest Asia in March 2003, the funds ($1.4 billion) that were included in the President's fiscal year 2004 budget to support those operations next year may no longer be necessary.