A study of the effects that implementation of biennial budgeting has on the Department of the Navy's POM development and budget formulation processes

Abstract

A trend towards biennial budgeting at the Federal level may be developing. In 1982, expanded multiyear procurement procedures in the acquisition of major weapons systems were made available to DOD by the Congress and Major Milestone Funding is under discussion. In 1986, DOD became the first Federal agency to submit a biennial budget (for FY 1988 & FY 1989) . The purpose of this thesis is to study the effects that these changes are causing on the POM development and budget formulation within the Department of the Navy. The potential benefits that a biennial budget offers to those formulating and executing the budget vary considerably depending upon the specific form that the biennial budget takes. Favorable characteristics from DOD's perspective are identified.