Influences within Public Programs: the United States Defense Budget - Research Paper Example

?Influences within Public Programs: The United s Defense Budget The US defense or military budget is the fraction of the country’s federal budget that is dedicated to defense-related spending, especially by the Department of Defense. The defense budget among other things is used to pay salaries, healthcare, and training of both civilian and uniformed officers, maintain arms, facilities and equipment, fund operations, and purchase new equipment (Government Printing Office, 2011). In summary, the budget pays the expenditure of the five arms of the U.S. military including the Coast Guard, army, air force, navy, and Marine Corps. There are several other military related items that go beyond the Defense Department budget that are also included in the defense budget. Some of these include nuclear weapons research, production, maintenance and cleanup. Across the world, the U.S. is among the greatest spenders in military and defense endeavors. In 2010 fiscal year alone, the U.S. base budget for overseas contingency operations totaled about 664 billion U.S. dollars. The budget however reached 680 billion USD when it was finally enacted into law in October 2009 (US Federal Budget, 2012). Additionally, a supplemental budget of about $37 billion USD was organized in the same financial year. The federal government recently announced budget cuts running to billions of U.S. dollars over a span of ten years. One of the most affected sectors in this respect is defense. According to President Obama, a new military strategy will see a cut of close to 487 billion U.S. dollars in the next decade (Jay, 2012). The strategy will include limiting pay rises for military officers, the closure of a number of military bases in the U.S., and a rise in health insurance fees for retired military officers. Factors that Have Contributed to Proposed Budget Cuts One of the main factors that have contributed to the defense budget cuts relates to the country’s debt. Both sides of the political divide have participated in the budget defense cut debate in a bid to help reduce state debt. The 2013 fiscal year federal budget is estimated to have a deficit of 901 billion U.S. dollars (Government Printing Office, 2011). This deficit comes about considering that the government intends to spend about 3.8 trillion U.S. dollars but can only afford to generate revenue amounting to 2.9 trillion U.S. dollars. Through the proposed budget cuts, this deficit will be significantly reduced. The 2008 financial crisis has also been associated with the proposed budget cuts. The recession saw the country incur huge costs in stimulus packages (close to $787 billion). The stimulus packages saw ailing companies restored to stability, unemployment benefits extended, jobs created, taxes cut, and public projects funded. These expenditures were unforeseen and unbudgeted for. As the recession struck the country in 2008 and the economy tanked, the government’s revenue significantly reduced. The federal government therefore ended up with less income than what it projected to earn for the fiscal year. Yet another reason that may be associated with the budget cuts is the 9/11 attacks. Following the attack, the United States initiated a massive war on terror that saw military spending leap reach a record high, for the first time, of about $670billion in 2007. Although the government’s revenue declined over the next couple of years, expenditure on defense continued to rise steadily. During the recession, the government spent a lot in funding the Afghanistan and Iraq wars leading the government to incur great budget deficits (Government Printing Office, 2011). The government’s mandatory spending has continued to rise each new year. The government spends on Medicare, and social security among other mandatory programs huge amounts of money, estimated at $2.30 trillion per year. These expenses consume most of the government’s revenue. In the end, the government has little remaining to run all its programs adequately with great need to reduce budgetary allocations. The U.S. Congress recently declared that the budgetary cuts that affected the military were in order considering that close to 65 thousand military officers were no longer permanent employees following the U.S. military force’s withdrawal from Iraq and Afghanistan (Government Printing Office, 2011). Interaction among the Federal, State, and Municipal Levels Considering the vital task performed by the military as far as the country’s security is concerned, the federal government under the approval of senate plays a great role in establishing the defense budget. The department of defense is mandated to control its budget allocation so as to carry out its functions most effectively (Government Printing Office, 2011). While the department can ask for further allocations in special circumstances, it is required to stick within its budgetary allocations. Counties, states and other jurisdictions may contribute toward the budgetary allocation of the defense force especially by raising ideas and concerns relating to the same. With respect to the defense, most of the budgeting decisions are made at the federal level. The Congressional Budget Office, House and Senate Budget Committees play a significant role in establishing the amount of money allocated for defence purposes. Strategies by the agency and Politicians Use to Justify Increasing or Decreasing the Budget While policy makers agree to a large extent on budget cuts, some note that the budget cuts should come from elsewhere - not from the military budget. Several commentators have hinted that cutting the military budget could have adverse effects on the country’s capacity to defend itself against adversaries and maintain superpower status (Marvin, 2012). Senator Joe Lieberman recently stated that the looming budget cuts will put national security to unacceptably high risks (Marvin, 2012). The Secretary of defense, Robert Gates, a couple of years ago stated that the U.S. needs to adjust its spending and priorities to address potential future threats (Marvin, 2012). In this respect, Gates opposed defense budgetary cuts. Those in favor of the military budget cuts claim that the country’s stock pile of nuclear weapons is enough to fight off aggressors and deter potential attackers. Furthermore, they claim that the current spending far exceeds the level needed to discourage aggression. Another Congressman, Barney Frank, joined the call for the defense budget cuts stating that only by adopting such a measure will the country be able to adequately finance its domestic activities. The Department of Defense argues that terrorists and rogue nations have one thing in common; they realize that they may not succeed in fighting the U.S. the conventional way. In this respect, they are getting more sophisticated and approach war and terror with greater tact and high level strategies. In order for the U.S defense force to overcome the new threats, its needs higher budgetary allocation especially for research, and training, and to develop better surveillance equipment (Comptroller.defense.gov, 2012). Limits of the Agency Budget Office and How it May Try to Compensate for these Limits As previously stated, the Department of Defense will be allocated about 23% of the U.S. budgeted expenditure. In the wake of budgetary cuts affecting the agency, a number of measures will be taken to ensure that its activities are not grossly affected. For one, the agency will see a number of domestic military bases closed to secure some savings. The Department will also shift its focus away from the maintenance of large-scale prolonged wars in a bid to save some of its allocations. The shift will be toward intelligence, reconnaissance and surveillance. In addition, the agency will see some weapons systems terminated in favor of new projects or programs. Present and Future Costs In 2012, 25% of the country’s budgeted expenditure was dedicated toward defense going by the federal government’s budget, equal to the allocation for 2011 (US Federal Budget, 2012). The 2013 budget however is a reduction of the total allocation, standing at 23% of the US budgeted expenditure. According to U.S. Federal Budget (2012), the 2014 defense budget will see a further reduction in the percentage allocation. This reduction trend is likely to persist in the years beyond 2014. Taking a budget of $1.415 trillion for 2012, the 2013 cost may be calculated as: 23/25 * 1.415 trillion = 1.3018 Trillion US Dollars Cost Control Applications In order to control costs, the Department of Defense can opt for various strategies. Among these include laying off workers or employing some workers on a temporary bases, restructuring the agency, and outsourcing some activities. The agency may also review its budget and cut down on redundant expenditures. Conclusion The United States Congress has proposed several budgetary cuts spanning far and wide. One of the affected departments in this respect is defense. The federal government has taken this measure in a bid to reduce national debt and overcome budgetary deficits running to billions of US dollars. There are various causes behind the budgetary cuts that are bound to affect the country’s defense system. Some analysts suggest that the recent financial crisis played a role in increasing the country’s debt as the government had to release stimulus packages in a desperate bid to restore positive growth. Yet another cause for the budgetary cut is the fact that the Iraq and Afghanistan wars are no longer cause for extra budgetary allocation. Yet again, the rise in mandatory spending has continued to grow without corresponding growth in federal revenues which has resulted in deficits that need to be reduced. Several arguments have been posted by various quarters arguing for or against the budgetary cuts that are bound to affect the country’s defense organs. Some claim that severe cuts will compromise the country’s security thereby predisposing it to attacks from terrorists and rogue countries. Others claim that the Department of Defense has for a long time been given excess money to run its operations without reasonable cause. Yet again, others argue that the Iraq and Afghanistan wars are over which means that the Department of Defense no longer needs money for the wars. Given the gravity with which the security of the U.S. is treated, the U.S. Defense may not diversify into performing non-defense activities for the purposes of revenue generation. However, the relevant agencies may cut down on costs by through restructuring, outsourcing, outlaying some workers, and focusing on surveillance as opposed to fighting large scale wars. While it is common practice for state and country representatives and citizens to play a role in determining the functioning and operations of government agencies, the country’s defense is to a great extent an exception considering the nature of its activities. While various spectators can post ideas and recommendations relating to military operations, most of the decisions are made at the federal level with contributions made by the various military organs, congress, senate, treasury and the president. References Comptroller.defense.gov (2012) United States Department of Defense Fiscal Year 2012 Budget Request. Retrieved from http://comptroller.defense.gov/defbudget/fy2012/FY2012_Budget_Request_Overview_Book.pdf Government Printing Office (2011) Budget of the U.S. Government, Fiscal Year 2012, Analytical Perspectives. Washington: Government Printing Office. Jay R. (2012) Pentagon Budget Cuts: A Cause For Concern?. Retrieved from http://www.max-security.com/max-spotlight/pentagonbudget.htm Marvin T. (2012) Cutting US Defense Spending is not a Threat to American Security. Retrieved from http://prospectjournal.ucsd.edu/index.php/2011/09/cutting-us-defense-spending-is-not-a-threat-to-american-security/ US Federal Budget (2012) FY12 Federal Budget Spending Estimates for Fiscal Years 2011 – 2012. Retrieved from http://www.usfederalbudget.us/federal_budget_detail_fy12bs12013n Read More