U.S. Defense Secretary Gates announces Pentagon budget efficiencies

2011-01-07 15:31:51 GMT+7 (ICT)

WASHINGTON D.C. (BNO NEWS) -- U.S. Defense Secretary Robert Gates has announced that the Pentagon found $154 billion in budget efficiencies over the next five years.

These efficiencies will allow the Defense Department to invest $70 billion from that saved amount in 'more deserving' projects, Gates said. The efficiencies continued a process to reshape and re-balance the defense budget that has already saved $300 billion.

"It is important to not repeat the mistakes of the past by making drastic and ill-conceived cuts to the overall defense budget," the secretary said. "At the same time, it is imperative for this department to eliminate wasteful, excessive and unneeded spending."

The Defense Secretary added that, under his leadership, he wants every dollar invested in defense spent in the smartest manner and emphasized that the U.S. is currently facing a range of future security threats.

One of the programs that would be dismissed is the expeditionary fighting vehicle program, which its development has already cost $3 billion and needs an additional $12 billion to be built.

Gates also announced that the restructure of the F-35 joint strike fighter program, which has experienced significant testing issues, would be on two-year probation in order to have the short take-off and landing variant problems fixed.

Further, the military's medical program, TRICARE, will be changed by Secretary Gates after noticing that fees have not risen since its introduction in 1995. Gates will propose modest increases to fees for working-age military retirees.

These changes are expected to be included in the upcoming fiscal 2012 budget request. In addition, Gates is preparing changes in the defense intelligence apparatus, and will eliminate or downgrade general and flag officer positions.

The efficiencies will also eliminate the Office of the Assistant Secretary of Defense for Network Intelligence and Information, the Business Transformation Agency and the U.S. Joint Forces Command.

"To maintain the kind of military needed for America's leadership role requires not only adequate levels of funding, but also fundamentally changing the way our defense establishment spends money and does business," Gates added.

-- © BNO News All rights reserved 2011-01-07

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