Future Budget Requirements for the 600-Ship Navy
Abstract
When the Administration assumed office in January 1981, it inherited a fleet of about 479 Navy ships, including twelve deployable aircraft carrier battle groups. Considering this fleet inadequate for U.S. defense needs, the Administration has established higher force goals in almost every ship state category, with the objective of building up the total number of battle force ships to 600 by the end of the 1980s. Other key goals are to increase deployable carrier battle groups from 12 to 15 with a comparable increase in the aircraft to fly from these carriers. In addition to increasing numbers, the Administration plans to modernize the Navy with more advanced--and expensive--ships. Concerns have been raised in the Congress and elsewhere about the costs of attaining and maintaining this "600 ship Navy." Such concerns could be well-founded. From fiscal years 1980 through 1985, the total budget for the Department of the Navy (including the Marine Corps) grew at a real (inflation-adjusted), average annual rate of about 7.5 percent or from $69.9 billion in 1980 (adjusted for retirement accounting changes), to $100.3 billion in 1985. This study estimates that, over the next decade, the Navy's budget would have to continue to increase at a real rate of between 3 percent and 5 percent a year to meet the Navy's goals. Such sustained real growth would be unprecedented in peacetime and would double the Navy budgets (in constant dollars) between 1980 and 1994. Based on historical precedent and recent Congressional actions to hold down increases in defense spending, this study considers the effect on the Navy of limiting future budget growth.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1985
- Accession Number
- ADA530783
Entities
People
- Peter T. Tarpgaard
- Robert E. Mechanic
Organizations
- Congressional Budget Office