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Pentagon: White House Seeks $623 Billion In FY 2008 Defense Budget February 5, 2007

Posted by notapundit in Military News, US News, White House.
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WASHINGTON (Dow Jones)–The White House on Monday submitted $623 billion in requests for fiscal year 2008, along with a request for more war funding in the current fiscal year, according to Defense Department documents.

The 2008 defense request includes $481.4 billion in the base budget, plus $141.7 billion in extra funds related to the global war on terrorism. The base budget is about 11% above the enacted 2007 budget, or 8.6% more when adjusted for inflation, according to Pentagon projections.

Big weapons programs like Lockheed Martin Corp.’s (LMT) Joint Strike Fighter and Boeing Co.’s (BA) Future Combat Systems upgrade for the Army get big chunks of the 2008 request. But the military services each expect lots of unpaid bills and will campaign heavily for more money, while trying to maintain the appearance of Defense Department-wide cooperation.

Wartime spending has helped the big defense contractors post healthy fourth-quarter earnings with strong prospects for 2007. The new budget suggests the defense industry hasn’t yet peaked, analysts said.

“There’s no sign of a flagging in demand for military goods or services,” said Lexington Institute defense analyst Loren Thompson. “I continue to believe that we’re at a top, but you can’t find that in these numbers.”

Most big weapons programs saw their requested funding increase over 2007 levels. But the 2008 request includes a $500 million cut to missile defense programs.

Some weapons program requests in the new budget include:

– $27 billion for various aircraft programs, including $6.1 billion for the F-35 Joint Strike Fighter, $4.6 billion for the Lockheed Martin F-22 Raptor and $2.6 billion for the V-22 Osprey, made by Boeing Co. and Textron Inc.’s (TXT) Bell Helicopter unit.

– $3.7 billion for the Army’s Future Combat Systems

– $6.0 billion for satellite systems and other space programs

– $8.9 billion for missile defense programs

– $14.4 billion for shipbuilding programs, including $3 billion for the next generation DDG-1000 destroyer made by Northrop Grumman Corp. (NOC) and General Dynamics Corp. (GD)

-By Rebecca Christie, Dow Jones Newswires

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