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CBO: DoD’s Operations & Maintenance Spending Rose 47% From 2000 to 2012

BudgetA new Congressional Budget Office report says the Defense Department’s operation and maintenance funds for DoD-wide programs and agencies rose 7 percent from 1980 through 2000 and 5 percent between 2001 and 2015.

CBO said in a report released Friday that DoD saw a 47-percent increase in O&M spending from 2000 through 2012, driven by the Defense Health Program and combat forces-related activities.

Derek Trunkey, an analyst at CBO’s national security division, presented the report at the Western Economic Association International’s 91st annual conference in Portland, Oregon.

CBO classified the Pentagon’s O&M funding data into four categories that include purchased goods and services, activities supported and sources of products and services.

According to the report, activities in support of combat units accounted for 12 percent of $198 billion in total base budget O&M spending in 2012.

Maintenance, technical, transportation, medical and research services represented approximately $91 billion or nearly 50 percent of the total base budget O&M purchases in 2012, CBO said.

The report also noted that 66 percent, or $72.2 billion, of the total external revenues related to working capital funds in 2012 came from base budget and overseas contingency operations O&M funds.

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