The Costs of the Administration's Plan for the Navy through the Year 2010
Abstract
CBO estimated the budgetary implications of the Administration's plans and goals for the Department of the Navy, which includes the Marine Corps, through the year 2010. Through 1997, the figures are taken from the Administration's budget submitted in February 1991, including the adjustments submitted in April 1991, and its Future Years Defense Program (FYDP). Beyond 1997, the memorandum presents estimates based on assumptions about the Administration's plan. The Navy's budget would decline through 1997 under the Administration's plan. By 1997, the total Navy budget would be about $81 billion compared with $109 billion in 1990, a decline of 25 percent. (All costs in this memorandum are expressed in 1992 dollars of budget authority.) Beyond 1997, however, CBO estimates that the Navy would require substantial real increases in its budget even to maintain the smaller fleet envisioned under the Administration's plan. Because costs are uncertain, CBO presents lower and higher estimates. Under the lower estimate of costs that assumes that the Navy adopts policies to hold down procurement costs, the Navy would require annual real growth of about 0.9 percent in its budget in the 1997-2010 period. By 2010, the Navy budget would be about $91 billion compared to $81 billion in 1997. Under the higher estimate of costs, which assumes higher acquisition costs, the Navy would require annual real growth at a rate of 2.5 percent after 1997. By 2010, its budget would total $112 billion, about $31 billion a year more than the Administration's planned spending for 1997. The remainder of this staff memorandum describes the analysis that underlies these estimates. The memorandum focuses on estimates of procurement costs, because they have the greatest effect on the total budget, but also discusses personnel, operating, and other costs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1991
- Accession Number
- ADA529900
Entities
People
- Christopher P. Briem
- Deborah Clay-mendez
- Lane Pierrot
- Michael A. Miller
- Michael B. Berger
- Raymond J. Hall
- Robert Ahearne
- Steven V. Glazerman
- William P. Myers
Organizations
- Congressional Budget Office