Pentagon prepares to cut defence budget by 8% annually for 5 years

US Secretary of Defence Pete Hagel has instructed the Pentagon and Armed Forces to develop a plan to cut the defence budget by 8% annually over the next five years.

Here's What We Know

The Washington Post reports that operations on the southern border of the United States, nuclear weapons modernisation, missile defence, and the purchase of kamikaze drones and ammunition will not be cut. Funding for the Indo-Pacific, Northern and Space Commands will also be maintained, while the European, Central and African Command is not included in the list.

The Pentagon's budget for 2025 is about $850 billion. There is a political consensus in the US that significant military spending is needed to deter China and Russia. If the proposed cuts are adopted in full, they will amount to tens of billions of dollars annually for five years.

Earlier, it was reported that the Pentagon was preparing for possible budget cuts amid inspections by the newly created Department of Government Effectiveness (DOGE), headed by Elon Musk. And in February, it became known that the US Army is considering reducing redundant drones and ground vehicles, and the Navy is reviewing the future of the Littoral Combat Ship (LCS) programme.

Musk has been an outspoken critic of the US defence industry, claiming that bureaucratic inertia and inefficient procurement have led to inflated prices for outdated weapons systems. Experts are divided on the budget cuts, with some saying they are necessary to optimise costs, while others warn that excessive cuts could undermine the army's combat readiness.

Source: The Washington Post