Tuesday, January 3, 2012

Panetta to Offer Strategy for Cutting Military Budget

Defense Secretary Leon E. Panetta is set this week to reveal his strategy that will guide the Pentagon in cutting hundreds of billions of dollars from its budget, and with it the Obama administration’s vision of the military that the United States needs to meet 21st-century threats, according to senior officials.

In a shift of doctrine driven by fiscal reality and a deal last summer that kept the United States from defaulting on its debts, Mr. Panetta is expected to outline plans for carefully shrinking the military — and in so doing make it clear that the Pentagon will not maintain the ability to fight two sustained ground wars at once.

Instead, he will say that the military will be large enough to fight and win one major conflict, while also being able to “spoil” a second adversary’s ambitions in another part of the world while conducting a number of other smaller operations, like providing disaster relief or enforcing a no-flight zone.

Pentagon officials, in the meantime, are in final deliberations about potential cuts to virtually every important area of military spending: the nuclear arsenal, warships, combat aircraft, salaries, and retirement and health benefits. With the war in Iraq over and the one in Afghanistan winding down, Mr. Panetta is weighing how significantly to shrink America’s ground forces.

There is broad agreement on the left, right and center that $450 billion in cuts over a decade — the amount that the White House and Pentagon agreed to last summer — is acceptable. That is about 8 percent of the Pentagon’s base budget. But there is intense debate about an additional $500 billion in cuts that may have to be made if Congress follows through with deeper reductions.