1996 Defense Budget

GAO reviewed the Defense Department's (DOD) fiscal year 1996 budget request and prior years' appropriations for research, development, test, and evaluation and procurement programs. Because of schedule delays, changes in program requirements, and issues that emerged after the budget request was developed, GAO identified opportunities to reduce the funding levels for fiscal year 1996 by about $956 million and rescind about $265 million from prior years' appropriations. GAO also found about $934 million that Congress can restrict from obligation until specified criteria are met to minimize risks in acquisition programs. Of these totals, GAO identified potential budget cuts of nearly $103 million to the fiscal year 1996 research, development, test, and evaluation budget request and potential rescissions of about $15 million to prior years' appropriations. GAO also identified about $27 million in obligational authority that can be restricted. GAO identified potential budget reductions of about $359 million to the fiscal year 1996 procurement budget request, potential rescissions of about $250 million to prior years' appropriations, and about $907 million in potential restrictions. GAO also found nearly $98 million in obligational authority expiring on September 30, 1995, including about $77 million in fiscal year 1994 research, development, test, and evaluation funds and about $19 million in fiscal year 1993 procurement funds.

GAO found that: (1) due to schedule delays, changes in program requirements, and issues that emerged since the budget request was developed, there are opportunities to reduce funding levels for FY 1996 by about $956.4 million and rescind about $265.2 million from prior years' appropriations; (2) Congress could restrict about $934.2 million from obligation until specified criteria are met to minimize risks in acquisition programs; (3) about $97.8 million in obligational authority expires on September 30, 1995; (4) of the totals, there are potential budget reductions of about $102.6 million to the FY 1996 research, development, test, and evaluation budget request, and potential rescissions of about $14.8 million to prior years' appropriations; and (5) there are about $27.4 million in obligational authority that can be restricted.