Pentagon likely to go for dire cuts
US: The US Defense Department officials should be prepared for
more budget cuts in case the government fails to approve further savings
by the end of year, a new report warns. “Given the abruptness of the
cuts imposed under the trigger and the real possibility that congress
may not be able to reach a deficit reduction compromise in time to avoid
the trigger, department of defense should immediately begin contingency
planning for how to handle such reduction,” the report by Todd Harrison
Center for Strategic and Budget Assessment wrote.
The debt ceiling legislation, which was signed into law on Tuesday by
US President Barack Obama, contains USD 350 billion in defense cuts.
The bill allows the USD 14.3 trillion borrowing ceiling to rise by up
to USD 2.4 trillion and also envisages USD 900 billion in savings, USD
350 billion of it in defense.
The Defense Department could be hit with another round of USD 500
billion in spending cuts if Congress misses the yearend deadline to
approve further government savings.
Should the congress fail, the pentagon budget would revert to its
2007 level of around USD 472 billion.
Leon Panetta, the United States Defense Secretary, has already warned
that the second round of potential defense cuts were “completely
unacceptable” and would damage US security, and the ability to protect
the nation.
Many experts agree that there is waste and duplication in the
Pentagon’s budget — but also say there’s not enough slack in the system
for sustained cuts over a decade. The Pentagon’s budget for fiscal year
2010 was USD 680 billion, a reminder of the vast size and reach of
America’s global military power. PessrTV |