Budgeting for Defense Inflation

Abstract

In recent years, the budget request for the Department of Defense (DoD) has included funds to cover anticipated increases in prices. These allowances are based on Administration estimates of inflation in coming years. Since 1982, the estimates have exceeded actual increases in prices so that DoD has received more funds than it needed to compensate for inflation. This excess funding in a period of fiscal austerity, coupled with uncertainty as to exactly how much extra money remains, has prompted questions about how to budget for defense inflation. Better forecasting methods might be of some help. But since no method can be expected to forecast inflation precisely, the Congress might wish to develop ways of adjusting appropriations to correct for the inevitable errors in forecasting.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1986
Accession Number
ADA530949

Entities

People

  • Barbara Hollinshead
  • R. W. Thomas

Organizations

  • Congressional Budget Office

Tags

Communities of Interest

  • Air Platforms
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Aircrafts
  • Budget Estimates
  • Budgets
  • Commerce
  • Congress
  • Contracts
  • Department Of Defense
  • Economic Analysis
  • Governments
  • Military Budgets
  • Military Personnel
  • Money
  • National Security
  • Personnel Management
  • Procurement

Readers

  • Public Financial Management and Budgeting
  • Regression Analysis.
  • Strategic Security Studies