Analysis of DOD's Claimed Budgetary Savings Through Management Reforms

GAO reviewed the Department of Defense's (DOD) Economies and Efficiencies Program to determine whether: (1) the savings projected for fiscal years (FY's) 1981 through 1987 can be expected to accrue; (2) the savings claimed for FY 1981 and 1982 were realized; and (3) the projected savings are the result of DOD reform or congressional or Government-wide actions.

In general, GAO believes that the actions contained in the Economies and Efficiencies Program will reduce spending, but not to the extent that DOD claimed. GAO strongly supports the continuing DOD efforts to streamline and economize whenever possible. Some of the difficulties GAO experienced in grouping the projected savings contained in the FY 1983 package should be alleviated with the guidance issued in August 1982 for the FY 1984 package. GAO believes that not all the projected savings during FY's 1981 through 1987 were adequately supported. Consequently, to the extent to which these projected savings targets remain unfulfilled, DOD will have to either eliminate additional programs or request additional budget authority in the future.