Pentagon to scale down costs but overall defence spend grows

The Pentagon, trying to make savings in the face of a yawning US deficit, has unveiled a series of cost-cutting measures that…

The Pentagon, trying to make savings in the face of a yawning US deficit, has unveiled a series of cost-cutting measures that will shed thousands of jobs and shut down an entire military command.

Defence secretary Robert Gates said he hoped the shake-up would show Congress the Pentagon would spend tax dollars wisely during tough economic times and address long-standing concerns about wasteful expenditure.

But Mr Gates warned, in some of his strongest language yet, against any future effort to actually cut overall defence spending, which is still growing.

“My greatest fear is that in economic tough times people will see the defence budget as the place to solve the nation’s deficit problems,” Mr Gates said.

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“As I look around the world and see a more unstable world, more failed and failing states, countries that are investing heavily in their militaries . . . I think that would be disastrous.”

The US budget gap hit a record $1.41 trillion (€1.07 trillion) in the fiscal year 2009 and is poised to grow wider this year, unnerving many Americans grappling with unemployment at a lofty 9.5 per cent. Many of the proposed cuts are also almost certain to upset members of Congress, who face the potential loss of jobs in their home districts in an election year.

Pentagon officials are mindful that their budget will come under increased scrutiny as the United States winds down the war in Iraq. President Barack Obama has also announced plans to start withdrawing troops from Afghanistan starting in July 2011, conditions permitting.

Mr Gates said it was important not to repeat past mistakes where economic troubles or “the winding down of a military campaign leads to steep and unwise reductions in defense”. The cost-cutting initiatives include scaling back the number of generals across the military and slashing funds for contractors.