The US Defence Modernisation 2008-2013 report reveals funding for military personnel, operations and maintenance costs fuelled by the GWOT are gobbling up an increasing share of defence resources.

The Global War on Terrorism (GWOT) has replicated the challenges and concerns faced by India for decisionmakers in the US. The US Defence Modernisation 2008-2013 report compiled by the Aerospace Industries Association gives indications of US defence planners experiencing dilemmas similar to that of India. With the defence budget increasingly focussing on conflicts across the borders, war on terrorism and increasing manpower costs, India’s military establishment’s modernisation plans have for long been adversely hit. The US, apparently, is now in the same boat. A look at some of the key elements highlighted by the report.

Emerging national security challenges of the 21st century require renewed national focus on the relevance of air power

Aerospace Industries Association’s (AIA) concerns that will affect decision-makers response to long-deferred defence modernisation and recapitalisation needs and requirements are inexorable growth in operations and maintenance costs; rising personnel expenditures, including future costs of recent increases in active duty end strength and simultaneous needs for reset and recapitalisation. For several generations US’s national security has depended heavily on sustained military superiority, especially in aerospace systems which is fast degrading as the existing fleet is aging rapidly. The US has in the past also allocated defence budget at much higher levels than its current 4 per cent share of Gross Domestic Product (GDP).

Congressional Budget Office analysis indicates the need for steady procurement funding of $120–150 billion per year, in constant dollars, to modernise the current force

AIA believes that while the investment resources proposed in the fiscal 2008-2013 Future Years Defence Program (FYDP) represent a modest start, the FYDP itself doesn’t effectively address growing structural challenges within the US defence budget or the mounting modernisation and recapitalisation bills coming due as a result of years of deferred investment. Since then, there have been moderate increases in investment spending, heavily influenced recently by growth in RDT&E and transformational programmes. Congressional Budget Office analysis indicates the need for steady procurement funding of $120–150 billion per year, in constant dollars, to modernise the current force.