Back on Feb. 15, when the Department of Defense released its budget request, the world and the United States looked a lot different. The NBA was coming out of its All-Star game, college basketball was gearing up for March Madness, and offices and highways were packed.
That the Covid-19 pandemic will have an impact on defence ministries is beyond doubt, but can governments and defence ministries find a way to deal with the possible effects on military spending and resource allocations?
Defense budget cuts are looming as the coronavirus pandemic places pressure on the federal budget across various agencies.
So the COVID stimulus will be around $3 trillion or ~4X the current defense budget. Cuts would be absolute maximum of $75 billion or 2.5% of stimulus spending to gut the defense budget and as the article says it’s not to cut spending as that money will go to other programs.
So no cuts in total spending, no reduction of the deficit but defense is drastically cut.
The government’s $3 trillion effort to rescue the economy from the coronavirus crisis is stirring worry at the Pentagon. Bulging federal deficits may force a reversal of years of big defense spending gains and threaten prized projects like the rebuilding of the nation’s arsenal of nuclear weapons.
Opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense’s budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and...
China, facing what it sees as increasing military pressure from the United States, is likely to shrug off the pall hanging over its economy from the novel coronavirus and increase its defence budget again this year.
“I've heard some people talk about [going] back to a BCA [Budget Control Act] level of funding,” Gen. Murray says, referring to the steep cuts also known as sequestration. “And I've heard some people say that it's even going to be worse than BCA.”