FY2005 Defense Budget: Frequently Asked Questions

CRS Report for Congress
FY2005 Defense Budget:
Frequently Asked Questions
July 12, 2004
Jeffrey Chamberlin
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division


Congressional Research Service ˜ The Library of Congress

FY2005 Defense Budget:
Frequently Asked Questions
Summary
This report is designed to provide facts and figures about the United States
defense budget in order to help answer frequently asked questions about defense
spending. The answers to these questions are based on analysis of recent and
historical trends in the defense budget up to and including the fiscal year (FY) 2005
budget request.
Using figures taken primarily from the White House Office of Management and
Budget’s (OMB’s) Budget of the United States Government, Fiscal Year 2005:
Historical Tables (February 2004), this report answers frequently asked questions
that fall within four categories:
(1) trends in defense spending over time, from World War II through OMB’s
FY2009 budget projections (questions 1, 2, 3, and 4);
(2) the impact of defense on the economy (questions 5, 6, and 7);
(3) costs of wars and supplemental appropriations (questions 8 and 9);
(4) trends in force structure (questions 10, 11, and 12).
The fifth section of the report consists of additional, more general budget data
tables and a glossary of frequently used budget terms.
This report will be updated as necessary.



Contents
In troduction ......................................................1
Key Budget Terminology........................................2
Budget Authority, Obligations, and Outlays.....................2
The “050” vs. the “051” Budget Function.......................2
Current and Constant Dollars.................................2
Discretionary and Mandatory Spending.........................3
Part I: Trends in Defense Spending Over Time...........................3
Question 1: What Are the Recent, Historic, and Projected Trends in
Budget Authority and Outlays for National Defense?..............3
Question 2: What Are the Recent Trends in Budget Authority for
Each Defense Appropriations Title?...........................7
Question 3: What Are the Historical Trends in Defense’s Share of
Total Federal Outlays?.....................................12
Question 4: What Are the Historical Trends in Defense’s Share of
Total Federal Discretionary Outlays?.........................13
Part II: The Impact of Defense on the Economy.........................14
Question 5: What Are the Historical Trends in U.S. Defense Outlays
as a Percentage of Gross Domestic Product (GDP)?..............14
Question 6: What Are the Historical Trends in Different Categories of
Federal Spending as a Percentage of GDP?.....................15
Question 7: How Do U.S. Defense Outlays Compare to Those of
Other Countries, Both in Dollars and as a Percentage of GDP?.....16
Part III: Costs of Wars and Defense Supplementals......................17
Question 8: How Much Has Congress Enacted in Defense Supplemental
Appropriations since September 11, 2001?.....................17
Question 9: How Much Has Each Major War in the History of the
United States Cost?.......................................20
Part IV: Trends in Force Structure....................................21
Question 10: What Have Been the Recent Trends in U.S. Military
Personnel Levels?........................................21
Question 11: What Are the Recent Trends in U.S. Military Force
Structure? ...............................................23
Question 12: How Much Budget Authority Has Been Provided to
Each Service in Recent Years?..............................24
Part V: Appendix and Glossary......................................25
Glossary ....................................................31
CRS Defense Reports.........................................33



Figure 1. National Defense Budget Authority and Outlays, FY1947-FY2009...3
Figure 2. National Defense Budget Authority and Outlays, FY1997-FY2009...4
Figure 3. Department of Defense Budget Authority by Appropriations Title,
FY1976-FY2005 ..............................................7
Figure 4. Shares of Total Federal Outlays by Type of Spending,
FY1962-FY2009 .............................................12
Figure 5. Defense and Non-Defense Discretionary Outlays as a Share of
Total Federal Discretionary Outlays, FY1962-FY2009................13
Figure 6. GDP and Defense’s Share of GDP, FY1962-FY2005 ............14
Figure 7. Federal Spending by Category as a Percentage of GDP,
FY1962-FY2005 .............................................15
Figure 8. Regular and Supplemental Defense Appropriations,
FY2001-FY2005 .............................................17
Figure 9. Active Duty and Selected Reserve End-Strength, Selected Years,
FY1989-FY2005 .............................................21
Figure 10. Department of Defense Budget Authority by Service,
FY2005 Request..............................................24
List of Tables
Table 1. National Defense Budget Function and Department of Defense Budget,
FY1997-FY2009 ..............................................6
Table 2. National Defense Budget Function Trends by Appropriations Title,
Budget Authority, FY1997-FY2009...............................9
Table 3. National Defense Budget Function by Appropriations Title,
Budget Authority, Selected Years, FY1976-FY2005 .................10
Table 4. National Defense Budget Function Outlays by
Appropriations Title, FY1997-2009..............................11
Table 5. Defense Spending of Top 25 Countries........................16
Table 6. Regular and Supplemental Appropriations for the National Defense
Budget Function, FY2001-2005.................................19
Table 7. Costs of Major U.S. Wars...................................20
Table 8. Department of Defense Personnel Levels, Selected Years..........22
Table 9. U.S. Military Force Structure, FY1980-2005....................23
Table 10. Department of Defense Budget Authority by Service,
FY1995-FY2005 .............................................24
Table 11. Real Growth/Decline in National Defense Budget Authority and
Outlays, FY1940-FY2009......................................26
Table 12. National Defense Outlays as a Percentage of GDP,
FY1910-FY2009 .............................................28
Table 13. Allocation of Federal Outlays by Budget Enforcement Act
Category, FY1962-FY2009.....................................29
Table 14. Percentage Allocation of Federal Outlays by
Budget Enforcement Act Category, FY1962-FY2009.................30



FY2005 Defense Budget:
Frequently Asked Questions
Introduction
This report is designed to answer Congress’s most frequently asked questions
and provide essential facts and figures about the defense budget. It includes figures
from the president’s fiscal year (FY) 2005 budget request and provides brief analyses
of recent and historical trends in the defense budget.
Each frequently asked question about the defense budget falls within one of the
following four sections in this report:
(1) trends in defense spending over time, from World War II through OMB’s
FY2009 budget projections (questions 1, 2, 3, and 4);
(2) the impact of defense on the economy (questions 5, 6, and 7);
(3) costs of wars and supplemental appropriations (questions 8 and 9);
(4) trends in force structure (questions 10, 11, and 12);
The fifth section of the report consists of additional data tables with historical
budget authority and outlay figures, and a glossary of frequently used budget terms.
Most of the figures used in this report are taken from annual budget documents1
prepared by the Office of Management and Budget (OMB). It is important to note
that OMB figures for budget authority and outlays through FY2004 include both
regular and supplemental appropriations. As a result, budget authority and outlay
totals for FY2003 and FY2004, which included significant supplemental
appropriations, are sometimes larger than totals for FY2005, which represent the
president’s FY2005 request and do not include any FY2005 supplemental
appropriations. In addition, please note that the budget authority and estimated
outlay figures for the president’s FY2005 request include the $25 billion budget
amendment for Iraq and Afghanistan submitted by the president to Congress on May
12, 2004. Outlay estimates provided by the Congressional Budget Office (CBO) for
the $25 billion amendment are added to OMB outlay projections for FY2006-
FY2009 included in this report.
Please note as well that all figures provided for FY2006 through FY2009 in this
report are either OMB, CBO, or Department of Defense projections, and represent
neither congressional appropriations nor the President’s request.


1Most figures are from the Office of Management and Budget, Budget of the United States
Government, Fiscal Year 2005: Historical Tables, February 2004.

Key Budget Terminology
The federal budget has its own unique vocabulary, a basic understanding of
which is essential to understand the significance of defense budget figures and trends.
The following budget terms, which will be used often in this report, are frequently
used, yet sometimes misunderstood.
Budget Authority, Obligations, and Outlays. When Congress
appropriates money, it provides agencies with “budget authority.” Budget authority
gives an agency the legal authority to obligate money for the provision of goods or
services. Appropriations are the most common, but not the only, type of budget2
authority.
Obligations then occur, for example, when agencies enter into contracts, submit
purchase orders, and employ personnel. When those obligations are liquidated — or
in simpler terms, when the “check is written” and the performance of an obligation
is paid for — outlays occur.
The term “defense spending” technically refers to outlays, although budget
authority and outlays are frequently confused in budget discussions.
The “050” vs. the “051” Budget Function. The federal budget is divided
into several functions, including the National Defense Budget Function, or “050”
function. The 050 function consists of three sub-functions — Department of Defense
(051), atomic energy defense activities (053), and defense-related activities in other
agencies (054).
Thus, “national defense” spending consists of more than just the Department of
Defense’s annual expenditures. Although the majority of the 050 function consists
of the Department of Defense (051) function, the 050 function also consists of
billions of dollars ($16.75 billion in FY2004) appropriated to the Department of
Energy for atomic energy defense activities.
This report contains figures for both the 050 and 051 functions, depending on
which is most useful to the reader.
Current and Constant Dollars. The cost of goods or services in current
dollars is the value of such goods or services in terms of prices current at the time of
purchase. For example, FY1985 national defense outlays in current dollars represent
the amount spent on national defense in FY1985 according to what the dollar was
worth in FY1985. Current dollars may also be referred to as “then-year” dollars.
The cost of goods or services in constant dollars is the value adjusted to
eliminate the effects of changes in prices (usually due to inflation). Constant dollars,
expressed in terms of a particular reference year (normally the current budget year),


2Other types include borrowing authority and contract authority — for further explanation
of these terms, see Allen Schick, The Federal Budget: Politics, Policy, Process
(Washington, D.C.: Brookings Institution Press, 2000).

are determined by dividing current dollars by a deflator based on the prices in the
reference year.
Constant dollars are used to measure the growth rates of programs over time
independently of the effects of inflation. For this reason, figures in this report
measuring trends in the defense budget use constant-dollar figures.
Discretionary and Mandatory Spending. Within the federal budget,
budget authority is classified as either discretionary or mandatory. Generally, budget
authority is discretionary if provided by Congress in appropriations acts and
mandatory if provided in permanent authorizing law (examples include Social
Security, Medicare, and federal employee retirement). However, a portion of
mandatory budget authority, including Medicaid and certain veterans’ programs, is
funded in annual appropriations acts.
Discretionary budget authority must be renewed annually, while most mandatory
budget authority is available automatically each year without legislative action by
Congress. Outlays are also classified as discretionary or mandatory according to the
classification of the budget authority from which they flow.
Part I: Trends in Defense Spending Over Time
The following section (questions 1, 2, 3, and 4) provides figures and an analysis
of trends in defense spending over time.
Question 1: What Are the Recent, Historic, and Projected
Trends in Budget Authority and Outlays for National
Defense?
Figure 1. National Defense Budget
Authority and Outlays, FY1947-FY2009
(constant FY2005 dollars in billions)
Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year
2005: Historical Tables, February 2004, pp. 53-58, 82-85, [http://www.whitehouse.gov/omb/budget/
fy2005/pdf/hist.pdf]. Figures for FY2006-FY2009 are projected; CBO estimated outlays for the $25
billion budget amendment for Iraq and Afghanistan are included in FY2005-FY2009 outlay figures.



Figure 1 shows the pattern of budget authority and outlays since World War II.
Since 1947, there have been four periods of significant increases in budget authority
and outlays — the Korean War, the Vietnam War, the Reagan era military build-up,
and the post-9/11 defense spending increases. Each period to date has been followed
by a period of significant decreases in budget authority and outlays.
Following the end of the Cold War and the disappearance of the Soviet threat,
some observers believed that this cyclical pattern in budget authority and outlays3
would end with a long, or even permanent, decline in defense spending. However,
the events of September 11, 2001, and the subsequent wars in Afghanistan, Iraq, and
the ongoing Global War on Terrorism ended the decline in budget authority and
outlays that had continued through most of the 1990s.
Figure 2 shows recent trends in budget authority and outlays from FY1997
through projected totals for FY2009. Table 1, below, shows budget authority and
outlays in current and constant FY2005 dollars for both the national defense budget
function (the “050” function) and the Department of Defense budget (the “051”
function) from FY1997 through FY2009.
Figure 2. National Defense Budget
Authority and Outlays, FY1997-FY2009
(constant FY2005 dollars in billions)
Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year
2005: Historical Tables, February 2004, pp. 58-59, 84-85, [http://www.whitehouse.gov/omb/budget/
fy2005/pdf/hist.pdf]. Figures for FY2006-FY2009 are projected; CBO outlay estimates for the $25
billion budget amendment for Iraq and Afghanistan are included in FY2005-FY2009 outlay figures.
FY1998 was the final year of a period of decline in budget authority and outlays
that began in FY1986. From FY1999 through FY2001, budget authority and outlays
increased modestly in real terms, by 8.6% and 4.8%, respectively. From FY2001
through FY2004, budget authority increased by 27.7% and outlays increased by


3Colonel Joe Conley, “Impacts of Declining Budgets and Defense Mergers on the
Department of Defense,” U.S. Army War College, Carlisle Barracks, PA, April 2002, p.3.

37.7%. The Bush Administration’s regular FY2005 national defense budget request
of $423.1 billion, when combined with the administration’s $25 billion budget
amendment for Iraq and Afghanistan submitted to Congress on May 12, 2004 and a
supplemental request that is expected early in calendar year 2005, will most likely
exceed FY2004 budget authority.



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Question 2: What Are the Recent Trends in Budget Authority
for Each Defense Appropriations Title?
Figure 3. Department of Defense Budget
Authority by Appropriations Title,
FY1976-FY2005
200
Military PersonnelOperations andMaintenance
150
100 Procurement
50
R,D,T&E
0
1976 1981 1986 1991 1996 2001
Source: Office of Management and Budget, Historical Tables: Budget of the United States
Government, Fiscal Year 2005, February 2004, pp. 82-85, [http://www.whitehouse.gov/omb/budget/
fy2005/pdf/hist.pdf]; FY2005 deflators from DOD Comptroller.
Note: Figures for FY2005 do not include the $25 billion budget amendment for Iraq and Afghanistan
submitted by the Bush Administration to Congress on May 12, 2004, as the Administrations
amendment did not allocate funds by appropriation title.
As shown in Figure 3, budget authority for procurement has varied far more
than that of the other appropriations titles since FY1976. When national defense
budget authority increased during this period — especially during the Reagan-era
build-up — procurement budget authority increased sharply. On the other hand,
when national defense budget authority was reduced significantly after the Cold War,
procurement funding faced much deeper cuts than military personnel, operations and
maintenance (O&M), and research, development, test, and evaluation (R,D,T&E).
Tables 2, 3, and 4 list recent budget authority in current year and constant year
dollars, and outlay levels in current year dollars for each of these appropriations
titles, respectively.
Budget authority for military personnel also declined considerably after the Cold
War, due largely to the drawdown in active duty and selected reserve personnel that
took place from 1989 to 1999. On the other hand, the O&M and R,D,T&E titles
have, until recently, been funded at relatively steady levels during periods of overall
increases and decreases in national defense budget authority.
Since FY2002, budget authority for each appropriations title has increased
sharply, in part as a result of the wars in Iraq and Afghanistan and enhanced security
for defense installations. Supplemental appropriations in FY2003 and FY2004 were



a major cause of the sharp increases in military personnel and O&M budget authority.
Procurement and R,D,T&E have increased steadily in regular appropriations since
FY1997, and have also received some additional funding in recent supplemental
appropriations.



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Question 3: What Are the Historical Trends in Defense’s
Share of Total Federal Outlays?
Figure 4. Shares of Total Federal Outlays by
Type of Spending, FY1962-FY2009
Source: Office of Management and Budget, Historical Tables: Budget of the United States
Government, Fiscal Year 2005, February 2004, pp. 127-128, [http://www.whitehouse.gov/omb/
budget/fy2005/pdf/hist.pdf]; FY2005 deflators from DOD Comptroller.
Notes: See p. 3 for definitions of mandatory and discretionary budget authority and outlays.
Figure 4 reveals two important long-term trends. The first trend is the decline
of defense discretionary outlays as a percentage of total federal outlays since FY1962.
In FY1962, defense discretionary represented 49.2%, or almost half, of total federal
outlays, while in FY2003 its share of total federal outlays declined to 18.8%.
Defense discretionary outlays have declined consistently as a percentage of
federal outlays in large part because of a second trend: the rapid increase of
mandatory outlays, mostly for major “entitlement” programs. Between FY1962 and
FY2004, mandatory outlays rose by 833% while defense outlays rose by 30% in real4
terms. The share of federal outlays of mandatory programs increased from 26.1%
in FY1962 to 54.1% in FY2004 and is projected to reach 56.5% by FY2009.


4 Percent growth in mandatory outlays and defense outlays between FY1962 and FY2004
is measured in constant FY2000 dollars using figures from the Office of Management and
Budget, Historical Tables: Budget of the United States Government, Fiscal Year 2005,
February 2004, p. 126, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/hist.pdf].

Question 4: What Are the Historical Trends in Defense’s
Share of Total Federal Discretionary Outlays?
Figure 5. Defense and Non-Defense
Discretionary Outlays as a Share of
Total Federal Discretionary Outlays,
FY1962-FY2009
Source: Office of Management and Budget, Historical Tables: Budget of the United States
Government, Fiscal Year 2005, February 2004, [http://www.whitehouse.gov/omb/budget/fy2005/
pdf/hist.pdf]; p.127.
Note: See p. 3 for definition of discretionary budget authority and outlays.
Defense discretionary outlays have declined from almost 75% of total
discretionary outlays in FY1962 to just under 50% of total discretionary outlays in
FY2003. This steady decline was interrupted significantly by the Reagan build-up
of the 1980s, during which time defense discretionary outlays rose from 50.1% of
total discretionary outlays in FY1981 to 62% in FY1987. Since FY1995, defense
discretionary outlays have remained between 47% and 50% of total discretionary
outlays, although this percentage has increased from 47.1% in FY2001 to 49.7% in
FY2004. Under current projections, defense will rise to 51.4% of total discretionary
outlays by FY2009.



Part II: The Impact of Defense on the Economy
The following section (questions 5, 6, and 7) looks at the impact of defense on
the economy, measured in terms of defense outlays and federal outlays as a
percentage of gross domestic product (GDP), and compares U.S. defense outlays to
those of foreign countries.
Question 5: What Are the Historical Trends in U.S. Defense
Outlays as a Percentage of Gross Domestic Product (GDP)?
Figure 6. GDP and Defense’s Share of GDP,
FY1962-FY2005
(constant FY2005 dollars in trillions / percent of GDP)
Source: GDP deflators and figures from the Office of Management and Budget, Historical Tables:
Budget of the United States Government, Fiscal Year 2005, February 2004, [http://www.
whitehouse.gov/omb/budget/fy2005/pdf/hist.pdf], pp. 128, 184.
Advocates of higher defense spending frequently cite defense’s declining
percentage of GDP to argue that the nation can afford more for defense. These
observers note that even with recent increases, defense spending is still at relatively
low levels historically as a percentage of GDP, as shown in Figure 6. Whereas
defense spending reached 9.5% of GDP in FY1968 and 6.2% of GDP in FY1986 at
the height of the Reagan build-up, it equaled only 3.9% of GDP in FY2004.5
Others’ counterargument, however, is that defense spending as a percentage of
GDP is as much dependent on the level of GDP growth as it is dependent on the level
of defense spending growth. Since 1962, GDP has grown 306% in real terms while


5See Table 12 in the Appendix for the data that correspond to Figures 6 and 7.

defense outlays have risen 30% during the same period.6 Therefore, some say, the
story of defense’s decline as a percentage of GDP is as much a story of the rapid
growth of the U.S. economy as it is a story of declining defense spending.
Question 6: What Are the Historical Trends in Different
Categories of Federal Spending as a Percentage of GDP?
It should be noted that the trend in defense outlays is part of a broader long-term
trend in the federal budget, in which both defense and non-defense discretionary
outlays have declined as shares of GDP while mandatory outlays have increased. As
Figure 7 below shows, total federal spending has been remarkably stable at about

20% of GDP over the past 40 years.


Figure 7. Federal Spending by Category as
a Percentage of GDP, FY1962-FY2005
Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year
2005: Historical Tables, February 2004, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/
hist.pdf], p. 128.


6 Percent growth in GDP and defense outlays between FY1962 and FY2004 is measured in
constant FY2000 dollars using figures from the Office of Management and Budget,
Historical Tables: Budget of the United States Government, Fiscal Year 2005, February

2004, pp. 126, 184-185, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/hist.pdf].



Question 7: How Do U.S. Defense Outlays Compare to Those
of Other Countries, Both in Dollars and as a Percentage of
GDP?
Table 5 ranks the top 25 countries in defense spending and lists the share of
GDP that each country devotes to defense.
Table 5. Defense Spending of Top 25 Countries
(current year U.S. dollars in millions)
CountryRankWMEATa IISS Military Balanceb
1999-2000 2003-2004
Defense % Defense %
Expendit ures GD P Expendit ures GD P
(1999 Data)(2002 Data)
United States1281,0003.0%348,5003.3%
China — Mainland288,9002.2%51,0004.1%
Japan 3 43,200 1.0% 39,500 1.0%
France 4 38,900 2.7% 40,200 2.5%
United Kingdom536,5002.5%37,3002.4%
Russia 6 35,000 5.6% 50,800 4.8%
Germany 7 32,600 1.6% 33,300 1.5%
Italy 8 23,700 2.0% 25,600 1.9%
Saudi Arabia921,20014.9%22,20012.0%
China — Taiwan1015,2005.2%7,9002.7%
South Korea1111,6002.9%13,3002.8%
India 1 2 11,300 2.5% 13,800 2.7%
T urkey 13 9,950 5.3% 9,200 5.1%
Brazil 1 4 9 ,920 1.9% 10,200 2.3%
Israel 15 8,700 8.8% 9,900 9.7%
Canada 16 8,320 1.4% 8,200 1.1%
Sp ain 1 7 7 ,560 1.3% 8,700 1.2%
Australia 18 7,060 1.8% 8,000 2.0%
Netherland s 1 9 7 ,030 1.8% 7,700 1.6%
Iran 2 0 6 ,880 2.9% 5,100 4.6%
Poland 21 6,690 2.1% 3,600 1.9%
Greece 22 6,060 4.7% 6,500 4.4%
Sweden 23 5,330 2.3% 4,200 1.7%
Dem. Rep. of Congo245,15014.4%1,00021.7%
Ukraine 2 5 5 ,110 3.0% 5,000 2.2%
Source: Data from the International Institute of Strategic Studies (IISS) and the U.S. Dept. of State.a
U.S. Department of State, World Military Expenditures and Arms Transfers (WMEAT), Washington,
February 2003; countries are ranked according to WMEAT figures.b
International Institute for Strategic Studies (IISS), The Military Balance: 2003-2004 (Oxford
University Press, 2003).



Part III: Costs of Wars and Defense Supplementals
The following section (questions 8 and 9) provides figures and analysis on the
costs of wars and recent supplemental appropriations for the Department of Defense.
Question 8: How Much Has Congress Enacted in Defense
Supplemental Appropriations since September 11, 2001?
Figure 8. Regular and Supplemental
Defense Appropriations,
FY2001-FY2005
(current year dollars in billions)
Source: House Appropriations Committee tables.
Note: FY2005 figures include the $25 billion amendment to the FY2005 request, for Iraq and
Afghanistan, submitted by the Bush Administration to Congress on May 12, 2004, [http://www.
whiteho use.go v/omb/budget/amend ments/amendment_5_12_04.pdf].
Congress enacted a total of $165.63 billion7 in supplemental appropriations for
defense from FY2001 through FY2004. More than half of this $165.63 billion was
enacted in FY2003 and FY2004 emergency supplemental appropriations, which
funded the wars in Iraq and Afghanistan.8 As shown in Figure 8, the combination


7 Total excludes $5.834 billion appropriated by Congress in P.L. 107-20, FY2001 non-
emergency supplemental appropriations, enacted before September 11, 2001; total also
reflects the $3.49 billion recission in P.L. 108-87, FY2004 DoD regular appropriations, of
funds appropriated in P.L. 108-11, FY2003 emergency supplemental appropriations.
8For a detailed analysis, see CRS Report RL32090, FY2004 Supplemental Appropriations
for Iraq, Afghanistan, and the Global War on Terrorism: Military Operations and
Reconstruction Assistance, by Stephen Daggett, Larry Nowels, Curt Tarnoff, and Rhoda

of increased supplemental and regular appropriations has resulted in a significant
increase in overall defense appropriations for the last four fiscal years. Table 6 lists
administration requests and the enacted levels of regular and supplemental
appropriations for defense since FY2001. For FY2005, Figure 8 includes the $25
billion budget amendment requested by the president on May 12, 2004 to cover the
costs of Iraq and Afghanistan for part of FY2005.


8 (...continued)
Margesson.

Table 6. Regular and Supplemental Appropriations for the National Defense
Budget Function, FY2001-2005
(current year dollars in millions)
Request Enacted Difference
FY2001
Regular Appropriations305,312.9309,974.0+4,661.1
Supplemental Appropriations:
Non-emergency supplemental H.R. 2216, P.L. 107-20a5,841.05,834.0-7.0
Emergency supplemental H.R. 2228, P.L. 107-3814,041.014,041.00.0
TOTAL FY2001325,194.9329,849.0+4,654.1
FY2002
Regular Appropriations343,435.0343,429.0-6.0
Supplemental Appropriations
Emergency Terrorism Response, H.R. 3338, P.L. 107-1177,467.03,867.0-3,600.0
Emergency supplemental, H.R. 4775, P.L. 107-20614,022.013,370.0-652.0
TOTAL FY2002364,924.0360,666.0-4,258.0
FY2003
Regular Appropriations392,837.0382,027.0-10,809.0
Supplemental Appropriations
Consolidated Appropriations Resolution, H.J.Res2010,000.0+10,000.0
Emergency supplemental, H.R. 1559, P.L. 108-1162,587.062,583.0-4.0
Rescission of funds from P.L. 108-11b-3,490.0
TOTAL FY2003455,424.0451,120.0-4,304.0
FY2004
Regular Appropriations400,476.0398,688.0-1,788.0
Supplemental Appropriations
Emergency supplemental, H.R. 3289, P.L. 108-10665,560.065,251.0-309.0
TOTAL FY2004466,036.0463,939.0-2,097.0
FY2005 (Request)
Regular Appropriationsc448,098.0
Budget Amendment25,000.0
TOTAL FY2005473,098.0
Source: Conference Reports for each bill and House Appropriations Tables as printed in the Congressional Record.
Total for FY2005 include the $25 billion budget amendment for Iraq and Afghanistan submitted by the Bush
Administration to Congress on May 12, 2004.
a Enacted before September 11, 2001.
b Congress rescinded $3.49 billion from P.L. 108-11 (FY2003 emergency supplemental) in the FY2004 Department of
Defense appropriations act (P.L. 108-87). This rescission reduces the funding scored in FY2004 but reduces the
resources available in the FY2003 emergency supplemental.c
Total includes $25.0 billion budget amendment for Iraq and Afghanistan submitted by the Bush administration to
Congress on May 12, 2004.



Question 9: How Much Has Each Major War in the History of
the United States Cost?
Table 7 lists the costs of each major war in United States’ history in current and
constant FY2005 dollars.
Table 7. Costs of Major U.S. Wars
(amounts in millions and billions of dollars)
American Revolution
Current Year $120million
Constant FY2005 $$3,315million
War of 1812
Current Year$89million
Constant FY2005 $$1,043million
Mexican War
Current Year$82million
Constant FY2005 $$1,841million
Civil War: Union
Current Year$2,300million
Constant FY2005 $$52,165million
Civil War: Confederacy
Current Year$1,000million
Constant FY2005 $$22,707million
Spanish American War
Current Year$270million
Constant FY2005 $$6,750million
World War Ia
Current Year$33billion
Constant FY2005 $$613billion
World War II
Current Year$360billion
Constant FY2005 $$5,008billion
Korea
Current Year$50billion
Constant FY2005 $$426billion
Vietna m
Current Year$111billion
Constant FY2005 $$609billion
Persian Gulf War (1991)b
Current Year$61billion
Constant FY2005 $$86billion
Sources and Notes: American Revolution through Korean War Costs from the Statistical Abstract
of the United States, 1994; deflators and all other data from the Office of the Under Secretary of
Defense (Comptroller). Costs for the American Revolution through the Korean War were converted
to constant FY2005 dollars from figures cited in the Statistical Abstract.
a World War I figures include the amount of war loans to allies, which totaled between $9.4 and $9.5
billion in current year dollars, or 28%-29% of the total cost.
b Most Persian Gulf War costs were offset by allied contributions or were absorbed by DOD. Net
costs to U.S. taxpayers totaled $4.7 billion in current year dollars, or 7.7% of the total cost. Source:
Department of Defense Annual Report to Congress, January 1993.



Part IV: Trends in Force Structure
The following section (questions 10, 11, and 12) provides figures and analysis
on U.S. military personnel levels, force structure, and budget authority by service.
Question 10: What Have Been the Recent Trends in U.S.
Military Personnel Levels?
Figure 9. Active Duty and Selected Reserve
End-Strength, Selected Years,
FY1989-FY2005
Sources: See Table 8 sources on following page.
As shown in Figure 9 and in Tables 8 and 9, the United States military
experienced a sharp drawdown in military personnel and forces that began in the late
1980s and ended, for the most part, by FY1999. The decision to decrease both
active duty and selected reserve forces reflected the disappearance of the Soviet
threat and congressional efforts to reduce budget deficits in the 1990s.
Although Congress has enacted significant increases in funding for national
defense, and military forces have been deployed in large numbers abroad since March
2003, the force structure has remained stable. In response to the demands of military
operations in Iraq and Afghanistan, the Secretary of Defense has temporarily
increased active-duty end strength temporarily by 30,000 troops, exercising authority
that allows the President to waive authorized end strength ceilings in national
em ergenci es.



Table 8. Department of Defense Personnel Levels, Selected Years
(end strength /civilian employees in thousands)a
Actua l Actua l Actua l Actua l Actua l Actua l Actua l Actua l Actua l Actua l Actua l Est . Proj.
Fiscal Year:1981198519891991199319951997199920012002200320042005
Army 781 781 770 725 572 509 492 479 481 487 499 482 482
Navy 540 571 593 571 510 435 396 373 378 383 382 374 366
Marine Corps191198197195178174174173173174178175175
Air Force570602571511444400378361354368375359360
Total Active2,0822,1512,1302,0021,7051,5181,4401,3861,3851,4121,4341,3911,383
Selected Reserves8511,1881,1711,1381,058946902877869874875863861
Total Civilians 9841,1071,0751,013891802723666647645636648651
Sources: Active duty force levels and selected reserve levels for FY2003-FY2005 from Department of Defense,
Undersecretary of Defense Comptroller, National Defense Budget Estimate for FY2005, March 2004, pp. 33, 212-213,
[http://www.defenselink.mil/comptroller/defbudget/fy2005/fy2005_greenbook.pdf]. Selected reserve levels for prior
years from U.S. Department of Defense, Manpower Requirements Report, FY1998, July 1998 and prior years; and from
Office of Management and Budget, Budget of the United States Government for FY2002: Appendix, April 2001 and prior
years. Civilian levels from Office of Management and Budget, Historical Tables: Budget of the United States
Government for FY2005, February 2004, pp. 295-296, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/hist.pdf].
aEnd strength refers to the number of military personnel on board on the last day of a fiscal year. Selected reserves do
not include Standby Reserve, Individual Ready Reserve, and Inactive National Guard. Totals may not add due to
r o und i ng.



Question 11: What Are the Recent Trends in U.S. Military
Force Structure?
Table 9 lists the force structure for each service from FY1980 though FY2005.
Table 9. U.S. Military Force Structure, FY1980-2005
FiscalArmyMarineAir Force
YearDivisionsDivisionsNaval ForcesTactical Wings
Active Reserve Acti ve Reserve C arri ers Total A cti ve R eserve
1980168 31134772611
1981168 31134912611
1982168 31145132612
1983168 31145142512
1984169 31145242512
19851710 31145422512
19861810 31145562512
19871810 31155692512
19881810 31155662512
19891810 31155672512
19901810 31155462412
19911610 31155262213
19921410 31144661613
19931410 31134341611
1994128 3112387139
1995128 3111+1373138
1996108 3111+1365137
1997108 3111+1357137
1998 10 8 3 1 11+1 333 13 7
1999 10 8 3 1 11+1 317 13 7.2
2000 10 8 3 1 11+1 316 13 7.6
2001 10 8 3 1 11+1 316 12.6 7 .6
2002 10 8 3 1 11+1 315 12+ 7+
2003 10 8 3 1 11+1 296 12+ 7+
2004 10 8 3 1 11+1 292 12+ 7+
2005 10 8 3 1 11+1 290 12+ 7+
Sources: [http://www.defenselink.mil/pubs/almanac/]; U.S. Navy, Highlights of the Department of the Navy
FY2005 Budget, [http://navweb.secnav.navy.mil]; briefing materials accompanying the FY2005 budget request
and similar materials provided in prior years; CRS Report 90-401, U.S./Soviet Military Balance: Statistical
Trends, 1980-1989, RCO, by John M. Collins and Dianne E. Rennack; CRS Report 91-672, U.S. Armed Forces:
Statistical Trends, 1985-1990, by John M. Collins and Dianne E. Rennack; U.S. Department of the Navy
(Program Information Center), Listing of U.S. Naval Ship Battle Forces as of 30 September 1993, Washington
1993 and previous editions.
Notes: Figures for FY2004 and FY2005 are Administration projections.a
Air Force figures do not include a wing of F-117 aircraft prior to FY1990. b
Carrier figures exclude one auxiliary training carrier for FY1980-92 but include one operational reserve training
carrier (shown as+1) since FY1995.



Question 12: How Much Budget Authority Has Been Provided
to Each Service in Recent Years?
Table 10 shows Department of Defense budget authority by service from
FY1995-FY2005, and Figure 10 shows the Administration’s FY2005 request by
service as a percent of total Department of Defense budget authority.
Table 10. Department of Defense Budget Authority by Service, FY1995-
FY2005
(current year dollars in billions/percent of total)
Actual Actual Actual Actual Actual Actual Actual Actual Actual Est. Proj.
Fiscal Year:19951996199719981999200020012002200320042005
Army 63.3 64.5 64.4 64.0 68.4 73.2 77.0 85.9 121.1 132.9 97.0
% of DOD Total24.8%25.4%25.0%24.8%24.5%25.2%24.9%24.9%27.7%30.1%24.1%
Navy/M a rines 76.9 80.0 79.5 80.7 84.0 88.8 95.5 102.4 124.0 120.3 119.2
% of DOD Total30.1%31.4%30.8%31.2%30.2%30.6%30.8%29.6%28.3%27.2%29.6%
Air Force73.973.073.276.381.983.189.5100.2125.2124.0120.4
% of DOD Total28.9%28.7%28.4%29.5%29.4%28.6%28.9%29.0%28.6%28.1%29.9%
Defense Wide41.637.040.837.644.345.547.957.167.464.566.0
% of DOD Total16.3%14.5%15.8%14.5%15.9%15.7%15.4%16.5%15.4%14.6%16.4%
DOD Total255.7254.4258.0258.6278.6290.5309.9345.6437.7441.7402.6
Figure 10. Department of Defense Budget
Authority by Service, FY2005 Request
Source: Department of Defense Comptroller, National Defense Budget Estimates for FY2005, April
2004, [http://www.defenselink.mil/comptroller/defbudget/fy2005/fy2005_greenbook.pdf].



Part V: Appendix and Glossary
Part V provides additional data tables and a glossary of frequently used defense
budget terms.
Table 11 provides the real growth/decline in national defense budget authority
and outlays from FY1940 to FY2009, in both current and constant FY2005 dollars.
Table 12 lists national defense outlays as a percentage of GDP from FY1910 to
FY2009. The amounts of defense discretionary spending, non-defense discretionary
spending, mandatory spending, and net interest that make up total federal outlays
from FY1962 to FY2009 are shown in Table 13, while Table 14 shows each of these
four categories as a percentage of total federal outlays from FY1962 to FY2009.



Table 11. Real Growth/Decline in National Defense Budget
Authority and Outlays, FY1940-FY2009
(current and constant FY2005 dollars in billions)
BUDGET AUTHORITYOUTLAYS
FISCAL
YEAR CurrentDo lla rs Co nst a ntFY2005 Rea lGr o w t h / CurrentDo lla rs Co nst a ntFY2005 Rea lGr o w t h /
Do lla rs Decline Do lla rs Decline
1940 1.7 30.0
1941 6.4 97.9 226.8%
1942 25.7 329.7 236.7%
1943 66.7 806.5 144.6%
1944 79.1 1 ,055.0 30.8%
1945 39.2 740.8 83.0 1 ,202.4 14.0%
1946 44.0 637.7 -13.9% 42.7 647.7 -46.1%
1947 9.0 138.4 -78.3% 12.8 182.7 -71.8%
1948 9.5 122.5 -11.5% 9.1 125.2 -31.5%
1949 10.9 149.0 21.60% 13.2 173.5 38.5%
1950 16.5 187.2 25.6% 13.7 170.3 -1.9%
1951 57.8 488.8 161.1% 23.6 261.0 53.3%
1952 67.5 594.3 21.6% 46.1 451.0 72.8%
1953 56.9 522.8 -12.0% 52.8 497.7 10.4%
1954 38.7 383.5 -26.7% 49.3 473.3 -4.9%
1955 32.9 326.7 -14.8% 42.7 408.1 -13.8%
1956 35.0 325.1 -0.5% 42.5 385.5 -5.5%
1957 39.4 348.8 7 .3% 45.4 390.6 1 .3%
1958 40.1 335.8 -3.7% 46.8 380.9 -2.5%
1959 45.1 352.8 5 .1% 49.0 380.0 -0.3%
1960 44.3 340.8 -3.4% 48.1 370.8 -2.4%
1961 45.1 344.5 1 .1% 49.6 369.9 -0.2%
1962 50.2 376.6 9 .3% 52.3 390.9 5 .7%
1963 52.1 382.6 1 .6% 53.4 395.3 1 .1%
1964 51.6 365.7 -4.4% 54.8 391.1 -1.0%
1965 50.6 350.6 -4.1% 50.6 359.0 -8.2%
1966 64.4 405.6 15.7% 58.1 383.1 6 .7%
1967 73.1 442.8 9 .2% 71.4 441.9 15.4%
1968 77.2 450.8 1 .8% 81.9 480.8 8 .8%
1969 78.5 440.8 -2.2% 82.5 469.5 -2.3%
1970 75.3 401.0 -9.0% 81.7 436.2 -7.1%
1971 72.7 365.7 -8.8% 78.9 398.1 -8.7%
1972 76.4 351.6 -3.9% 79.2 369.3 -7.2%
1973 79.1 335.6 -4.6% 76.7 336.9 -8.8%
1974 81.5 318.2 -5.2% 79.3 322.4 -4.3%
1975 86.2 307.6 -3.3% 86.5 315.0 -2.3%
1976 97.3 321.6 4 .6% 89.6 305.1 -3.1%
1977 110.2 334.5 4 .0% 97.2 307.4 0 .8%
1978 117.2 329.8 -1.4% 104.5 307.5 0 .0%
1979 126.5 328.1 -0.5% 116.3 316.9 3 .1%
1980 143.9 333.6 1 .7% 134.0 324.9 2 .5%
1981 180.0 370.8 11.1% 157.5 339.5 4 .5%
1982 216.5 410.0 10.6% 185.3 362.6 6 .8%
1983 245.0 442.7 8 .0% 209.9 391.0 7 .8%
1984 265.2 462.5 4 .5% 227.4 406.7 4 .0%
1985 294.7 493.9 6 .8% 252.7 433.2 6 .5%
1986 289.1 474.9 -3.8% 273.4 455.1 5 .0%
1987 287.4 460.2 -3.1% 282.0 456.5 0 .3%



BUDGET AUTHORITYOUTLAYS
FISCAL Current Co nst a nt Rea l Current Co nst a nt Rea l
YEAR Do lla rs FY2005 Gr o w t h / Do lla rs FY2005 Gr o w t h /
Do lla rs Decline Do lla rs Decline
1988 292.0 451.3 -1.9% 290.4 454.9 -0.4%
1989 299.6 445.5 -1.3% 303.6 456.0 0 .3%
1990 301.2 435.2 -2.3% 297.9 435.3 -4.5%
1991 296.2 411.5 -5.4% 296.7 417.1 -4.2%
1992 287.7 390.8 -5.0% 286.1 389.0 -6.7%
1993 281.1 374.2 -4.2% 283.9 376.1 -3.3%
1994 263.3 343.2 -8.3% 278.9 360.8 -4.1%
1995 266.4 340.0 -0.9% 271.0 345.0 -4.4%
1996 266.2 332.5 -2.2% 265.2 331.0 -4.1%
1997 270.4 330.3 -0.7% 270.5 328.9 -0.6%
1998 271.3 323.1 -2.2% 268.5 318.9 -3.0%
1999 292.3 339.5 5 .1% 274.9 320.3 0 .4%
2000 304.1 344.2 1 .4% 294.5 333.5 4 .1%
2001 335.5 368.9 7 .2% 305.5 335.6 0 .6%
2002 362.1 387.6 5 .1% 348.6 372.3 10.9%
2003 456.2 476.0 22.8% 404.9 422.5 13.5%
2004 460.5 469.7 -1.3% 453.7 462.1 9 .4%
2005 448.1 448.1 -4.6% 469.4 469.4 1 .6%
2006 444.0 433.7 -3.2% 441.0 431.3 -8.1%
2007 464.8 443.0 2 .1% 447.9 427.9 -0.8%
2008 485.8 451.5 1 .9% 467.4 435.7 1 .8%
2009 508.2 460.5 2 .0% 487.4 443.2 1 .7%
Sources: Current dollar budget authority figures for FY1940-FY1975 from Department of Defense
Comptroller, National Defense Budget Estimates for FY1982, March 1983; all other current dollar
figures from U.S. Office of Management and Budget, Historical Tables: Budget of the United States
Government, Fiscal Year 2005, February 2004, [http://www.whitehouse.gov/omb/budget/fy2005/
pdf/hist.pdf]; constant dollar figures calculated by CRS using FY2005 deflators from Department of
Defense Comptroller.
Note: CBO outlay estimates for $25 billion budget amendment for Iraq and Afghanistan included in
FY2005 outlay figures. FY2006-FY2009 outlay estimates for the amendment were not available at
the printing of this report.



Table 12. National Defense Outlays as a Percentage of GDP,
FY1910-FY2009
(current year dollars in billions)
FiscalNationalDefenseGNP/aOutlaysas % ofFiscalNationalDefenseGNP/Outlaysas % of
Year Outl ay s GDP GNP / GDP Year Outl ay s GDP GNP / GDP
1910 0.3 35.3 0 .8% 1960 48.1 518.9 9 .3%
1911 0.3 35.8 0 .8% 1961 49.6 529.9 9 .4%
1912 0.3 39.4 0 .7% 1962 52.3 567.8 9 .2%
1913 0.3 39.6 0 .7% 1963 53.4 599.2 8 .9%
1914 0.3 38.6 0 .8% 1964 54.8 641.4 8 .5%
1915 0.3 40.0 0 .7% 1965 50.6 687.5 7 .4%
1916 0.3 48.3 0 .6% 1966 58.1 755.8 7 .7%
1917 0.6 60.4 1 .0% 1967 71.4 810.2 8 .8%
1918 7.1 76.4 9 .3% 1968 81.9 868.5 9 .4%
1919 13.5 84.0 16.1% 1969 82.5 948.3 8 .7%
1920 4.0 91.5 4 .4% 1970 81.7 1 ,012.9 8 .1%
1921 2.6 69.6 3 .7% 1971 78.9 1 ,080.3 7 .3%
1922 0.9 74.1 1 .3% 1972 79.2 1 ,176.9 6 .7%
1923 0.7 85.1 0 .8% 1973 76.7 1 ,311.0 5 .9%
1924 0.6 84.7 0 .8% 1974 79.3 1 ,438.9 5 .5%
1925 0.6 93.1 0 .6% 1975 86.5 1 ,560.8 5 .5%
1926 0.6 97.0 0 .6% 1976 89.6 1 ,738.8 5 .7%
1927 0.6 94.9 0 .6% 1977 97.2 1 ,974.4 5 .6%
1928 0.7 97.0 0 .7% 1978 104.5 2 ,218.3 5 .3%
1929 0.7 103.1 0 .7% 1979 116.3 2 ,502.4 5 .2%
1930 0.7 97.4 0 .8% 1980 134.0 2 ,725.4 4 .9%
1931 0.7 83.8 0 .9% 1981 157.5 3 ,058.6 5 .1%
1932 0.7 67.6 1 .0% 1982 185.3 3 ,225.5 5 .7%
1933 0.6 57.6 1 .1% 1983 209.9 3 ,442.7 6 .1%
1934 0.5 61.2 0 .9% 1984 227.4 3 ,846.7 5 .9%
1935 0.7 69.6 1 .0% 1985 252.7 4 ,148.9 6 .1%
1936 0.9 78.5 1 .2% 1986 273.4 4 ,406.7 6 .2%
1937 0.9 87.8 1 .1% 1987 282.0 4 ,654.4 6 .1%
1938 1.0 89.0 1 .2% 1988 290.4 5 ,011.9 5 .8%
1939 1.1 89.1 1 .2% 1989 303.6 5 ,401.7 3 .1%
1940 1.7 96.8 1 .7% 1990 299.3 5 ,737.0 5 .2%
1941 6.4 114.1 5 .6% 1991 273.3 5 ,934.2 4 .6%
1942 25.7 144.3 17.8% 1992 298.4 6 ,240.6 4 .8%
1943 66.7 180.3 37.0% 1993 291.1 6 ,578.4 4 .4%
1944 79.1 209.2 37.9% 1994 281.6 6 ,964.2 4 .1%
1945 83.0 221.3 37.5% 1995 272.1 7 ,325.1 3 .7%
1946 42.7 222.7 19.2% 1996 265.8 7 ,697.4 3 .5%
1947 12.8 233.2 5 .5% 1997 270.5 8 ,186.6 3 .3%
1948 9.1 256.7 3 .6% 1998 268.5 8 ,626.3 3 .1%
1949 13.2 271.3 4 .8% 1999 274.9 9 ,127.0 3 .0%
1950 13.7 273.2 5 .0% 2000 294.5 9 ,708.4 3 .0%
1951 23.6 320.3 7 .3% 2001 305.5 10,040.7 3 .0%
1952 46.1 348.7 13.2% 2002 348.6 10,373.4 3 .4%
1953 52.8 372.6 14.1% 2003 404.9 10,828.3 3 .7%
1954 49.3 377.1 13.1% 2004 453.7 11,466.0 3 .9%
1955 42.7 395.9 10.8% 2005 469.4 12,042.4 3 .9%
1956 42.5 427.0 9 .9% 2006 441.0 12,641.1 3 .5%
1957 45.4 450.9 10.1% 2007 447.9 13,279.1 3 .4%
1958 46.8 460.0 10.2% 2008 467.4 13,972.6 3 .3%
1959 49.0 490.2 10.0% 2009 487.4 14,701.6 3 .3%
Sources: Outlays, FY1910-FY1939, and GNP/GDP, FY1910-FY1939, from U.S. Department of
Commerce, Historical Statistics of the United States (Washington: GPO, 1975); outlays, FY1940-
FY2009, and GDP, FY1940-FY2009, from U.S. Office of Management and Budget, Historical
Tables: Budget of the United States Government, Fiscal Year 2005, February 2004, pp. 110, 184-185.
a Figures for FY1910-FY1929 were calculated in gross national product (GNP) rather than GDP.



Table 13. Allocation of Federal Outlays by Budget Enforcement
Act Category, FY1962-FY2009
(current year dollars in billions)
FiscalDefenseDiscretionaryNon-DefenseDiscretionaryMandatoryNet InterestTotal Federal
Year Outl ay s Outl ay s Outl ay s Outl ay s
1962 52.6 19.5 27.9 6 .9 106.8
1963 53.7 21.6 28.3 7 .7 111.3
1964 55.0 24.1 31.2 8 .2 118.5
1965 51.0 26.8 31.8 8 .6 118.2
1966 59.0 31.1 35.0 9 .4 134.5
1967 72.0 34.5 40.7 10.3 157.5
1968 82.2 35.8 49.1 11.1 178.1
1969 82.7 34.6 53.6 12.7 183.6
1970 81.9 38.3 61.0 14.4 195.6
1971 79.0 43.5 72.8 14.8 210.2
1972 79.3 49.2 86.7 15.5 230.7
1973 77.1 53.3 98.0 17.3 245.7
1974 80.7 57.5 109.7 21.4 269.4
1975 87.6 70.3 151.1 23.2 332.3
1976 89.9 85.7 169.5 26.7 371.8
1977 97.5 99.6 182.2 29.9 409.2
1978 104.6 114.1 204.6 35.5 458.7
1979 116.8 123.2 221.4 42.6 504.0
1980 134.6 141.7 262.1 52.5 590.9
1981 158.0 149.9 301.6 68.8 678.2
1982 185.9 140.0 334.8 85.0 745.7
1983 209.9 143.4 365.2 89.8 808.4
1984 228.0 151.4 361.3 111.1 851.9
1985 253.1 162.7 401.1 129.5 946.4
1986 273.8 164.7 415.9 136.0 990.4
1987 282.5 161.7 421.3 138.6 1 ,004.1
1988 290.9 173.5 448.2 151.8 1 ,064.5
1989 304.0 184.8 485.8 169.0 1 ,143.6
1990 300.1 200.4 568.2 184.3 1 ,253.2
1991 319.7 213.6 596.6 194.4 1 ,324.4
1992 302.6 231.2 648.5 199.3 1 ,381.7
1993 292.4 247.0 671.4 198.7 1 ,409.5
1994 282.3 259.1 717.5 202.9 1 ,461.9
1995 273.6 271.3 738.8 232.1 1 ,515.8
1996 266.0 266.7 786.8 241.1 1 ,560.5
1997 271.7 275.6 810.0 244.0 1 ,601.2
1998 270.2 281.9 859.4 241.1 1 ,652.6
1999 275.5 296.5 900.1 229.8 1 ,701.9
2000 295.0 319.9 951.0 223.0 1 ,788.8
2001 306.1 343.3 1 ,008.3 206.2 1 ,863.8
2002 348.9 385.4 1 ,105.7 171.0 2 ,011.0
2003 404.9 420.8 1 ,178.9 153.1 2 ,157.6
2004 451.6 456.6 1 ,254.4 156.3 2 ,318.8
2005 467.0 465.8 1 ,307.9 177.9 2 ,399.8
2006 434.6 457.7 1 ,367.6 213.4 2 ,473.3
2007 445.6 458.8 1 ,441.5 246.2 2 ,592.1
2008 465.5 457.4 1 ,526.7 274.6 2 ,724.3
2009 485.6 456.7 1 ,612.0 299.1 2 ,853.5
Source: Office of Management and Budget: Budget of the United States Government, Fiscal Year
2005: Historical Tables, February 2004, p. 125, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/
hist.pdf].



Table 14. Percentage Allocation of Federal Outlays by
Budget Enforcement Act Category, FY1962-FY2009
(percentage of total outlays)
Fiscal Defens eDi screti onary Non- Defens eDi screti onary M a ndat o r y Net Defens eShare
Year Outl ay s Outl ay s Outl ay s Interest Di screti onary
1962 49.2 18.3 26.1 6 .4 73.0
1963 48.3 19.4 25.4 7 .0 71.3
1964 46.4 20.3 26.3 6 .9 69.5
1965 43.1 22.6 26.9 7 .3 65.6
1966 43.9 23.2 26.0 7 .0 65.5
1967 45.7 21.9 25.9 6 .5 67.6
1968 46.1 20.1 27.5 6 .2 69.7
1969 45.0 18.8 29.2 6 .9 70.5
1970 41.9 19.6 31.2 7 .4 68.1
1971 37.6 20.7 34.6 7 .1 64.5
1972 34.4 21.3 37.6 6 .7 61.7
1973 31.4 21.7 39.9 7 .1 59.1
1974 30.0 21.3 40.7 8 .0 58.4
1975 26.4 21.2 45.5 7 .0 55.4
1976 24.2 23.1 45.6 7 .2 51.2
1977 23.8 24.3 44.5 7 .3 49.5
1978 22.8 24.9 44.6 7 .7 47.8
1979 23.2 24.4 43.9 8 .5 48.7
1980 22.8 24.0 44.4 8 .9 48.7
1981 23.3 22.1 44.5 10.1 51.3
1982 24.9 18.8 44.9 11.4 57.0
1983 26.0 17.7 45.2 11.1 59.4
1984 26.8 17.8 42.4 13.0 60.1
1985 26.7 17.2 42.4 13.7 60.9
1986 27.6 16.6 42.0 13.7 62.4
1987 28.1 16.1 42.0 13.8 63.6
1988 27.3 16.3 42.1 14.3 62.6
1989 26.6 16.2 42.5 14.8 62.2
1990 24.0 16.0 45.3 14.7 59.9
1991 24.1 16.1 45.0 14.7 59.9
1992 21.9 16.7 46.9 14.4 56.7
1993 20.7 17.5 47.6 14.1 54.2
1994 19.3 17.7 49.1 13.9 52.1
1995 18.0 17.9 48.7 15.3 50.2
1996 17.0 17.1 50.4 15.4 49.9
1997 17.0 17.2 50.6 15.2 49.7
1998 16.4 17.1 52.0 14.6 48.9
1999 16.2 17.4 52.9 13.5 48.2
2000 16.5 17.9 53.2 12.5 48.0
2001 16.4 18.4 54.1 11.1 47.1
2002 17.4 19.2 55.0 8 .5 47.5
2003 18.8 19.5 54.6 7 .1 49.0
2004 19.5 19.7 54.1 6 .7 49.7
2005 18.7 19.4 54.5 7 .4 49.1
2006 17.6 18.5 55.3 8 .6 48.7
2007 17.2 17.7 55.6 9 .5 49.3
2008 17.1 16.8 56.0 10.1 50.4
2009 17.0 16.0 56.5 10.5 51.5
Source: Office of Management and Budget: Budget of the United States Government, Fiscal Year
2005: Historical Tables, February 2004, p. 127, [http://www.whitehouse.gov/omb/budget/fy2005/pdf/
hist.pdf].



Glossary
The definitions that follow are taken from Office of Management and Budget
and Department of Defense publications.
Accrual Accounting — as applied to military retired pay, a method of recording
costs designed to reflect the liability of the federal government for the future
retirement costs of military personnel currently on active or reserve duty. First
used in FY1985 in DOD, this method of accounting represents a change from
the earlier practice in which the cost of military retirement was measured in
terms of actual payments to current retirees.
Appropriation — one form of budget authority provided by Congress for the
funding of an agency, department, or program for a given amount of time. An
appropriation provides funds for purposes specifically designated by Congress.
Funds will not necessarily all be spent in the year in which they are initially
provided.
Authorization — establishes or maintains a government program or agency by
defining its scope. Authorizing legislation is normally a prerequisite for
appropriations and may set specific limits on the amount that may be
appropriated for the specified program or agency. An authorization, however,
does not make money available, and sometimes appropriations are made
without having been authorized.
Budget Authority — legal authority for an agency to enter into obligations for the
provision of goods or services. It may be available for one or more years. An
appropriation is one form of budget authority.
Current/Constant Dollars — the cost of goods or services in current dollars is the
value in terms of prices current at the time of purchase — current dollars are
also referred to simply as “dollars” or as “then-year dollars.” The cost of goods
or services in constant dollars is the value adjusted to eliminate the effects of
changes in prices (usually due to inflation). Constant dollars, expressed in
terms of a selected reference year (generally the most recent fiscal year), are
determined by dividing current dollars by a “deflator” based on the prices in the
reference year. Constant dollars are used to assess changes in funding of
programs independently of the effects of inflation. Growth rates in constant,
inflation-adjusted dollars are referred to as “real growth” rates.
Deficit — in the federal budget, the amount by which total federal budget outlays for
a given fiscal year exceed total federal revenues for that year.
Fiscal Year — a fiscal year in the federal government begins on October 1 and ends
on September 30 and is designated by the calendar year in which it ends. Thus,
FY2005 begins on October 1, 2004 and will end on September 30, 2005. (Note
that the federal fiscal year ran from July 1 to June 30 until FY1977.)



National Defense Budget Function — one of the categories of the federal budget.
It consists of the Department of Defense (DOD) budget, which funds all direct
DOD military programs, and a number of defense-related activities administered
by other agencies. These activities include atomic energy defense activities
funded through the Department of Energy, civil defense programs administered
by the Federal Emergency Management Agency, and the Selective Service
System. The DOD budget constitutes more than 95% of the National Defense
Budget Function.
Obligation — an order placed, contract awarded, service agreement undertaken, or
other commitments made by federal agencies during a given period which will
require outlays during the same or some future period.
Outlays — money spent by a federal agency from funds provided by Congress.
Outlays in a given fiscal year are a result of obligations that in turn follow the
provision of budget authority.
Unexpended Funds — budget authority that has been appropriated by Congress, but
remains unspent, representing future outlays. Unexpended funds, whether
obligated or as yet unobligated, are formally appropriated by Congress for
specific programs.
Unobligated Funds — budget authority that has been appropriated by Congress for
specific programs but that has not yet been pledged or obligated by contract.



CRS Defense Reports
CRS annually prepares a number of issue briefs and reports on specific weapons
systems and other defense issues that impact the defense budget. For updated lists
of CRS products on defense-related issues, congressional offices should go to
[ h ttp://www.crs.gov/products/browse/is-defense.shtml] .
Selected defense-related products include:
CRS Report RL32305, Authorization and Appropriations for FY2005: Defense, by
Stephen Daggett and Amy Belasco.
CRS Issue Brief IB85159, Military Retirement: Major Legislative Issues, by Robert
L. Goldich.
CRS Issue Brief IB93103, Military Medical Care Services: Questions and Answers,
by Richard A. Best, Jr.
CRS Issue Brief IB10089, Military Pay and Benefits: Key Questions and Answers,
by Robert L. Goldich.
CRS Report RS20851, Naval Transformation: Background and Issues for Congress,
by Ronald O’Rourke.
CRS Report RS21059, Navy DD(X) Destroyer Program: Background and Issues for
Congress, by Ronald O’Rourke.
CRS Report RS21195, Evolutionary Acquisition and Spiral Development in DoD
Programs: Policy Issues for Congress, by Gary J. Pagliano and Ronald
O’Rourke.
CRS Issue Brief IB92115, Tactical Aircraft Modernization: Issues for Congress, by
Christopher Bolkcom.
CRS Report RL31872, Unmanned Aerial Vehicles: Background and Issues for
Congress, by Christopher Bolkcom.
CRS Report RS20859, Air Force Transformation, by Christopher Bolkcom.
CRS Report RL30802, Reserve Component Personnel Issues: Questions and
Answers, by Lawrence Kapp.
CRS Report RL32141, Funding for Military and Peacekeeping Operations: Recent
History and Precedents, by Jeffrey Chamberlin.
CRS Report RL32321, Policing in Peacekeeping and Related Stability Operations:
Problems and Proposed Solutions, by Nina M. Serafino.
CRS Report RS21822, Military Base Closures: DoD’s 2005 Internal Selection
Process, by Daniel Else