1993 Defense Budget

GAO reviewed the justifications for the fiscal year 1993 budget requests of $1.7 billion for 13 missile systems. GAO identified $47.4 million in potential reductions and rescissions to five of the 13 missile programs: $22.2 million in potential reductions to the fiscal year 1993 requests for two systems, $17.8 million in potential rescissions from the fiscal year 1992 appropriation for two systems, and $7.4 million in potential rescissions from the fiscal year 1991 Operation Desert Shield/Desert Storm supplemental appropriation for one system. These reductions and rescissions are possible because: (1) requirements are questionable or have been reduced; (2) costs are less than anticipated; and (3) more current information indicates that decreases are possible. GAO found no potential reductions or rescissions for eight of the missile systems it reviewed. GAO did identify issues concerning two missile systems--the Javelin and the Extended Range Interceptor Technology program--that are important to the appropriation deliberations. These issues involve: (1) whether the advance procurement funding for the Javelin will be needed; and (2) whether, if appropriated, the total funding requested for the Extended Range Interceptor Technology program will be used for that purpose.

GAO found that: (1) potential reductions and rescissions to 5 of 13 missile system programs total $47.4 million, including a reduction of $22.2 million in 2 missile systems for fiscal year (FY) 1993, rescissions to two FY 1992 missile systems totalling 17.8 million, and a supplemental appropriation rescission totalling $7.4 million; (2) reasons for reductions and rescissions include requirement reduction and reassessment, lower than anticipated costs, and greater availability of current information; and (3) concerns over 2 missile systems include the need for the Javelin Missile System and funds management for the Javelin and the Extended Range Interceptor Technology Missile System.