Bloomberg News

Panetta Said Ready to Release First Budget Numbers Jan. 26

January 11, 2012

(Updates with budget request schedule and numbers beginning in second paragraph.)

Jan. 11 (Bloomberg) -- Defense Secretary Leon Panetta is scheduled Jan. 26 to release the first details of the Obama administration’s fiscal 2013 defense budget, according to a U.S. defense official.

The date might change and the venue and level of detail haven’t been settled, said the official, speaking on condition of anonymity in advancement of an announcement. The entire Pentagon budget, along with the rest of the administration’s federal spending blueprint, is due to be released Feb. 6 and sent to Congress.

Defense spending in 2013 would be reduced 1 percent from this year’s initial $525.3 billion request before growing annually 1.8 percent in 2014, 2.3 percent in 2015, dropping to 1.9 percent in 2016 and increasing 2.2 percent in 2017, according to a Nov. 29 Office of Management and Budget document.

The administration plans $82.54 billion in funding for the Afghanistan and Iraq wars for 2013, according to OMB.

The basic defense-only “topline” numbers are currently projected at: $523.8 billion in 2013; $533.0 billion in 2014; $545.5 billion in 2015; $555.9 billion in 2016 and $567.9 billion in 2017, according to OMB.

The percentage increases are expressed in “nominal growth,” not adjusted for inflation. The OMB numbers apply only to Pentagon spending and not to non-Defense Department security agencies such the Energy Department, which maintains the nation’s nuclear weapons.

The 2012-2021 defense plan calls for $5.652 trillion in spending. OMB calculated that the total Budget Control Act- mandated defense cut over those years is $488 billion -- or about an 8.5 percent total decrease.

The OMB data outlined the distribution of the initial $261 billion in reductions mandated by the Budget Control Act: $27.5 billion in fiscal 2012; $46.8 billion in fiscal 2013; $53.3 billion in 2014; $52.7 billion in 2015; $54.6 billion in 2016 and $53.5 billion in 2017.

--Editors: Steven Komarow, Larry Liebert

To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net


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