With inflation now at 7.5%, the Defense Department is being squeezed. Former budget official Maj. Gen. John Ferrari (U.S. Army, ret.), senior fellow at the American Enterprise Institute, recommends a topline defense budget of $816 billion for fiscal year 2023.
- Ferrari said the needed service member pay raise and effect of inflation on the operating accounts funding readiness lead to approximately this number.
- He said he recommends a 7% pay raise but that initial reporting from the Office of Management and Budget suggests it will be around 4.6%, which will not cover inflation.
- Ferrari said an additional $20 billion for force readiness would keep it the same with rising costs of fuel and spare parts.
