Potential for Excess Funds in DOD
NSIAD-85-145
Published: Sep 03, 1985. Publicly Released: Sep 03, 1985.
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Highlights
Pursuant to a congressional request, GAO reviewed the Secretary of Defense's offer to reapply $4 billion from fiscal years (FY) 1984 and 1985 appropriations to the 1986 defense budget to determine whether there were: (1) excess funds in the Department of Defense's (DOD) budget; (2) reprogramming actions and lapsing balances; and (3) possible alternatives to the current inflation compensation system.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should take the following actions: (1) continue to use the GNP deflator as the basic index for DOD inflation budgeting for the portion of the DOD purchases other than pay and fuel; (2) eliminate the use of a multiplier in budgeting inflation for the major weapon systems accounts; (3) distribute the funds budgeted for inflation among the various DOD appropriations accounts in consultation with the Office of Management and Budget; and (4) monitor any annual inflation dividends or shortfalls that occur and report the latest information to Congress at the critical stages in the budget process. |
Items one and three were encompassed in S. Rept. 99-446, which requests the Comptroller General to study the feasibility of budgeting separately for inflation, code 394189; however, there was no provision in the FY 1987 budget for the multiplier, cited in item two. Item four was included in S. Rept. 99-176, which was tracked by AFMD in the FY 1987 work program.
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Appropriated fundsBudget authorityFunds managementGross national productInflationMilitary budgetsRevolving fundsUnobligated budget balancesWeapons systemsMilitary forces