The FY 2013 budget request projects nearly zero real growth in the base defense budget over the coming years and a gradual shift in resources to focus more on air and sea power.
Sequestration would alter virtually every aspect of DoD’s planning by forcing a uniform reduction in budget authority of roughly 10.3 percent across all accounts other than military personnel.
Outlays, however, lag behind budget authority and would only be reduced by 4.6 percent in FY 2013.
The delayed effect between budget authority and outlays means that defense contractors would not feel the full effect of sequestration immediately.
Sequestration would, however, force layoffs of DoD civilian employees soon after it takes effect. Base closures are specifically prohibited under sequestration, and because the president has exempted military personnel accounts, no uniformed military personnel would be separated from the service or receive a cut in pay because of sequestration.
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