Budget Issues:

Potential for Excess Funds in DOD-March 1986 Update

NSIAD-86-76: Published: Mar 7, 1986. Publicly Released: Mar 7, 1986.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Pursuant to a congressional request, GAO updated a previous report which estimated the Department of Defense's (DOD) inflation dividend, which is the benefit that accrues to DOD because of overestimates about future inflation. GAO provided: (1) updated estimates of the DOD inflation dividend; and (2) updated information on DOD unobligated budget balances.

GAO found that: (1) the estimated DOD inflation dividend for non-fuel purchases was $39.5 billion for fiscal years (FY) 1982 through 1986; (2) $14.2 billion of that dividend came from a special inflation multiplier for major weapons systems; (3) Congress has consistently reduced DOD appropriations in recognition of inflation dividends; and (4) its estimates did not reflect budget cuts which resulted from the Balanced Budget and Emergency Deficit Control Act. In addition, GAO found that: (1) during FY 1980 through 1985, DOD unobligated budget balances increased 154 percent; (2) at the end of 1985, actual unobligated balances totalled $63.7 billion, or $12.1 billion more than DOD estimated; (3) DOD estimates that, at the end of 1986, its unobligated balances will total $62.7 billion, or $7 billion more than it estimated in 1985; and (4) while DOD estimates for FY 1986 and 1987 will probably more closely reflect actual unobligated balances, such balances will continue to remain high.

Jun 28, 2018

Jun 21, 2018

Apr 3, 2018

Feb 6, 2018

Oct 12, 2017

Oct 2, 2017

  • budget icon, source: GAO

    U.S. Territories:

    Public Debt Outlook
    GAO-18-160: Published: Oct 2, 2017. Publicly Released: Oct 2, 2017.

Sep 20, 2017

May 3, 2017

Jan 18, 2017

Jan 17, 2017

Looking for more? Browse all our products here