12.5: Defense Spending
Fund an adequate defense. Other Information:
Funding an Adequate Defense. The most important core function of the federal government is ensuring America's national security,
but it needs to be accomplished as economically and efficiently as possible. The Defense Department will focus on identifying
and addressing its significant levels of wasteful spending and initiating significant reforms and efficiencies in logistics
and acquisition processes so that those funds can be reprioritized into the most important uses to protect America and our
allies by maintaining a strong, modern, and effective military. The war on terrorism has increased defense spending to approximately
5 percent of GDP, yet it remains well below the 9 percent spent during in the 1960s and the 6 percent spent during the 1980s.
While the Heritage plan recognizes that predicting precise funding requirements for overseas contingency operations is impossible,
it is reasonable to expect that the phasedown in those efforts will permit reducing defense spending to approximately 4 percent
of GDP and maintaining it at that level. Ultimately, of course, defense spending will have to be whatever it takes to protect
America and its interests around the globe. While this proposal for maintaining sufficient levels of defense spending assumes
that future military personnel will be brought under the broader proposals for health care and retirement reform outlined
in this report, it also provides for tailored transition options for current military personnel and retirees. Importantly,
reforms in compensation and benefits must maintain effective recruitment and retention of, and honor reasonable commitments
to, members of the armed forces.
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