WAND Fact Sheet

FY03 Federal Budget

$48 Billion in Increased Military Spending

In his proposed $2.13 trillion FY 2003 budget, President Bush is requesting $396.1 billion in defense spending (budget authority). This is a $48 billion increase from FY 2002, and represents the largest defense increase in two decades, returning the country to peak Cold War military spending levels. Between 1946 and 1989, the United States spent an average of $343 billion a year on defense (in fiscal 2003 dollars).

So, the $396.1 billion proposed military budget is 15% higher than the average Cold War budget.

Some point out that defense spending accounts for a smaller portion of our nation's gross domestic product (GDP) than in years past. Though this is true, it says more about the post-WWII growth of our economy than about our military strength. A more accurate gauge of military spending over time, in terms of real dollars spent, shows that spending has not considerably decreased.

FY 2003 National Defense budget authority (Function 050)    $379.3 billion -- Pentagon    $15.5 billion -- Department of Energy nuclear weapons activity + $1.2 billion -- other (Coast Guard) = $396.1 billion TOTAL military spending

How much of the $396.1 billion goes to fighting terrorism? Congressional analysts estimate that less than 10 percent of the total FY 2003 Department of Defense budget is directly related to the war on terrorism or homeland security. About half of the proposed military budget increase, or $19.7 billion, goes to homeland security and the war on terrorism.

Where does the rest of the $396.1 billion go? As in years past, the bulk of military spending goes toward buying conventional weapons and maintaining a force structure designed during the Cold War. Secretary of Defense Donald Rumsfeld has said that the military must be "transformed" to better reflect modern threats, like terrorism. But this year's increase, which continues Cold War policies and priorities, means that the Pentagon will further delay the necessary transformation.

Within the FY2003 defense budget, spending requests are allocated as follows: Operations & Maintenance -- $150.2 billion (18% increase) Military Personnel -- $94.2 billion (15% increase) Procurement -- $68.7 billion (12% increase) Research & Development -- $53.9 billion (11% increase) Military Construction -- $4.8 billion (27% decrease) Housing -- $4.2 billion (2% increase) The proposed budget requests $7.8 billion for national missile defense research and testing, plus an additional $815 million for developing space-based sensors that detect missile launches. The total ballistic missile defense request is $8.6 billion.

How much is $48 billion?

The proposed military spending increase -- $48 billion -- is more than three times the combined defense budgets of Iran, Iraq, North Korea, Libya, Cuba, Sudan and Syria, those nations traditionally regarded as “rogue nations” or “states of concern.” Clearly, the United States dwarfs the rest of the world in military spending: the proposed increase is larger than the entire defense budget of every other country, except Russia ($60 billion).
Source: Center for Defense Information

“The new administration mantra is that war and homeland defense are the central responsibilities of government, and almost everything else will have to fight for a place at the table, especially now that budget deficits have returned.” (“Bush to Seek Domestic Cuts to Pay for National Security, CQ Weekly 1/19/02)

Military spending makes up more than half of the entire discretionary budget, the money that Congress and the administration can control. For FY 2003, military spending comprises 53% of all discretionary spending ($755 billion). This is an increase from the FY 2001 proportion of 48%. More money will be spent on the military next year than on all discretionary social programs combined.

Cuts In Domestic Programs

Though the ongoing recession and terrorist attacks have increased demand for government programs and services, many domestic programs face steep cuts. Overall, non-defense domestic programs face cuts of 6.2% over the next year. Proposed cuts affect a variety of programs, such as workplace safety, heating assistance for the poor, and public housing.

According to William Gale, former Senior Staff Economist for the President’s Council of Economic Advisers, the FY 2003 budget “financ[es] the war on terrorism on the backs of those who are low and middle income,” in the form of cuts in social programs. At a time when unemployment is high, the budget proposes cutting $9.2 billion in highway funding, which may force states to abandon or postpone job-creating highway projects.

The Centers for Disease Control and Prevention’s non-bioterrorism budget is to be cut by $340 million, including a $57 million cut in chronic disease prevention and health promotion programs and a $10 million cut in spending on infectious disease control -- despite concerns about new infectious threats.

Large Budget Deficits

The once large surplus is gone, and the federal budget is expected to run large deficits over the next several years. According to the White House Office of Management and Budget, we can expect a $106 billion deficit for fiscal year 2002 and an $80 billion deficit in fiscal year 2003.

 

For more information, contact WAND at (202) 544-5055 or wand@wand.org

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