DoD Inflation: Budgeting and Monitoring Inflation Funding in the Department of Defense

Abstract

DOD includes amounts in its proposed budgets to cover anticipated increases in prices for most appropriation accounts. These amounts, however, are not separately shown in the proposed budgets nor are they separately appropriated. The amounts (except for pay and fuel accounts) are based on projections of the Gross National Product (GNP) implicit price deflator provided by the Office of Management and Budget. For estimates of price changes in fuel purchases, DOD uses estimates of the oil refiners acquisition cost. GAO estimates that since 1982 DOD received about $55 billion more for anticipated inflation than was warranted by the inflation that subsequently occurred. This happened as the country transitioned from very high inflation (1978 through 1981) to declining inflation (1982 to 1986). According to DUD, most of the inflation dividends were cut by congressional action, spent on additional defense programs, or lapsed and returned to the Treasury.

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Document Details

Document Type
Technical Report
Publication Date
Apr 01, 1988
Accession Number
AD1150528

Entities

People

  • Frank C. Conahan

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Aircrafts
  • Budget Estimates
  • Budgets
  • Business Administration
  • Combat Vehicles
  • Commerce
  • Comptrollers
  • Congress
  • Costs
  • Department Of Defense
  • Economic Analysis
  • Financial Management
  • Law
  • Money
  • National Security
  • Procurement
  • Test And Evaluation
  • United States
  • Weapon Systems

Readers

  • Economics
  • Public Financial Management and Budgeting