Defense Spending Cuts Coming with the Economic DownturnNovember 04, 2008

 

The incoming president of the United States will preside over the first cuts in military spending the Pentagon has seen in nearly a decade.

Top Pentagon officials and defense contractors say military spending will feel a blow from the financial meltdown like any other government department or private organization, according to an article in the New York Times.

Budget planners at the various military services are meeting behind closed doors to analyze worst-case spending budget scenarios, which include deep freezes or major cuts, according to the article.

Programs likely to bear the brunt of the cuts include expensive new arms programs (many of which already suffer from cost overruns), including the following:

  • Advanced combat systems for the Army;
  • Joint Strike Fighter for the Air Force;
  • New destroyers for the Navy; and,
  • Ground-based missile defense systems.

The Defense Department now accounts for half of the U.S. government's total discretionary spending, according to the Times. The article explores how the next president will pay for national security without ceding U.S. military superiority. Defense Secretary Robert M. Gates and senior Pentagon officials are lobbying to keep military spending around 4% of gross domestic product.