Reading a Defense Budget Request: Key Terms

A budget document with a magnifying glass

This article is a general, nonpartisan explainer. It describes the United States unless stated otherwise, and details change over time, so check official sources for the latest.

A defense budget request can run to thousands of pages. A short list of terms makes it much easier to navigate.

Appropriation titles

  • Military personnel: pay and allowances.
  • Operation and maintenance (O&M): day-to-day costs, such as training, fuel, repairs, and civilian pay.
  • Procurement: buying weapons, vehicles, ships, and aircraft.
  • Research, development, test and evaluation (RDT&E): developing new systems.
  • Military construction: facilities and bases.

Other useful terms

  • Topline: the total amount requested.
  • Baseline or base budget: the regular budget for ongoing needs.
  • Future Years Defense Program (FYDP): a plan for several years ahead.
  • Fiscal year: the twelve-month budget period, which in the U.S. starts October 1.
  • Program of record: a system formally approved and funded.
  • Unfunded priorities: items services say they want but that are not in the request.

Constant and current dollars

Current dollars are not adjusted for inflation, while constant dollars are. Comparing spending across years only makes sense in constant dollars.

Tips

  • Start with the summary and overview volumes.
  • Check the numbers in tables and footnotes.
  • Compare with the previous year’s request.
  • Use independent sources such as the Government Accountability Office and the Congressional Research Service.

With a little practice, even a long document becomes manageable.