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CBO Projects Defense Costs to Rise 20% Through FY 2030

budget analysis reviewThe Congressional Budget Office has projected the costs of the Defense Department‘s 2015 budget plans to reach $598 billion in 2030 from $497 billion in 2015 — an increase of up to 20 percent when adjusted for inflation.

CBO examined the Pentagon’s five-year future years defense program plan and released two projections of the base-budget costs of the department’s  long-term plans in a report released Thursday.

Operation and support accounts for nearly two-thirds of the implementation costs for DoD’s 2015 plans and acquisition represents nearly one-third of the plan’s cost, CBO said.

DoD’s base-budget plans between 2015 and 2019 is also projected by CBO to exceed the costs for DoD’s plans from 1980 to 2014 by $64 billion annually.

Both CBO and DoD estimate the cost of DoD’s plans will grow at an average annual rate of 1 percent from 2015 to 2030 minus inflation.

Operations and support costs are also projected to increase by 1 percent each year minus the inflation and the acquisition costs by 32 percent from 2015 to 2022.

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