Defense Budget:
Projected Inflation Savings
NSIAD-98-177R: Published: May 11, 1998. Publicly Released: May 11, 1998.
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Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) projected inflation savings, focusing on: (1) identifying the projected savings by fiscal year and the programs that DOD plans to buy with those savings; (2) the implications of applying those projected savings to additional DOD programs; and (3) a comparison of DOD's estimated savings to estimates provided by the Congressional Budget Office (CBO) and identify possible reasons for the difference in those estimates.
GAO noted that: (1) as a result of lower projected inflation rates, DOD calculated that its future purchases of goods and services over the 1999-2003 period would cost about $21.3 billion less than projected 1 year ago; (2) according to DOD, it will be able to buy additional programs with assumed savings from the projected lower inflation; (3) these programs include procurement items and civilian and military pay raises, which account for $15 billion of the $21.3 billion; (4) GAO's reviews of DOD's Future Years Defense Programs (FYDP) over the past few years have shown that DOD has not been able to reduce its infrastructure and increase procurements as planned; (5) this problem can be attributed somewhat to optimistic projections of future savings that did not materialize; (6) if the projected inflation savings that DOD has factored into the 1999 FYDP materialize or the inflation rates fall even lower than projected, DOD can fund the additional programs; (7) however, if the projected rates prove to be too optimistic, and the savings do not materialize, DOD will have to adjust its future budgets by cutting programs and/or request additional budget authority from the President and Congress; (8) CBO estimated that lower projected inflation rates would save defense $13.4 billion over the 1999-2003 period rather than the $21.3 billion estimated by DOD; (9) the most significant reason DOD's and CBO's estimates differ is that the declines in projected inflation are different; and (10) other reasons are that the budget baselines are different and CBO's estimate includes savings from low fuel costs, whereas DOD's estimate of $21.3 billion does not include savings for lower fuel costs of about $1 billion.
Dec 15, 2020
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The Nation's Fiscal Health:
Information on the Spending and Revenue Implications of Potential Debt TargetsGAO-21-211: Published: Dec 15, 2020. Publicly Released: Dec 15, 2020.
Oct 7, 2020
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The Nation's Fiscal Health:
A Long-Term Plan Is Needed for Fiscal SustainabilityGAO-21-161T: Published: Oct 7, 2020. Publicly Released: Oct 7, 2020.
Sep 23, 2020
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The Nation's Fiscal Health:
Effective Use of Fiscal Rules and TargetsGAO-20-561: Published: Sep 23, 2020. Publicly Released: Sep 23, 2020.
Jan 23, 2020
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Federal Trust Funds and Other Dedicated Funds:
Fiscal Sustainability Is a Growing Concern for Some Key FundsGAO-20-156: Published: Jan 16, 2020. Publicly Released: Jan 23, 2020.
Dec 19, 2019
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State and Local Governments' Fiscal Outlook:
2019 UpdateGAO-20-269SP: Published: Dec 19, 2019. Publicly Released: Dec 19, 2019.
Nov 14, 2019
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Certificated Expenditures:
Executive Office of the President FY 2018 Certificated Expenditures Were Spent for Authorized PurposesGAO-20-139R: Published: Nov 14, 2019. Publicly Released: Nov 14, 2019.
Oct 16, 2019
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Civilian Personnel:
Additional Guidance and Consistent Data Reporting Could Help Improve the Marine Corps' Budget ManagementGAO-20-148: Published: Oct 16, 2019. Publicly Released: Oct 16, 2019.
Jun 26, 2019
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The Nation's Fiscal Health:
Actions Needed to Achieve Long-Term Fiscal SustainabilityGAO-19-611T: Published: Jun 26, 2019. Publicly Released: Jun 26, 2019.
Apr 10, 2019
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The Nation's Fiscal Health:
Action Is Needed to Address the Federal Government's Fiscal FutureGAO-19-314SP: Published: Apr 10, 2019. Publicly Released: Apr 10, 2019.
Mar 27, 2019
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Fiscal Exposures:
Federal Insurance and Other Activities That Transfer Risk or Losses to the GovernmentGAO-19-353: Published: Mar 27, 2019. Publicly Released: Mar 27, 2019.
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