Expenditures for DOD military functions decreased from 9.3 percent of the gross national product in fiscal 1968 to 8.6 percent in fiscal 1969, and are estimated to decrease to 7.0 percent in fiscal year 1971.

TABLE 2-FEDERAL GOVERNMENT EXPENDITURES AND GROSS NATIONAL PRODUCT-COMPARISON WITH
NATIONAL DEFENSE PROGRAMS AND MILITARY FUNCTIONS EXPENDITURES, FISCAL YEARS 1939-71

(1)

Gross

national Expenditures/

Expenditures/

outlays (m1111ons)

Bureau of the Budget "Nationel Defense Programs" include Department of Defense military functions, military assistance, atomic energy activities, stockpiling of strategic and critical materials, defense production expansion, Selective Service System, and emergency preparedness activities.

2/ Amounts are adjusted for comparability with current coverage of military functions.

3/ For explanation of conceptual differences between "Administrative Eudzet" and "Unified
Budget", see Special Analysis A, page 454 of the Budget of the United States Government, 1969.
Source: OASD(Comptroller)

Table 3, when compared to Table 4, reflects a decrease of 74,999 military personnel and an increase of 15,888 civilian employees between June 30, 1968, and June 30, 1969. The increase in civilian employment is due to a change in reporting approximately 40,000 National Guard technicians who were classified as Federal employees on January 1, 1969. Table 5, when compared to Table 6 reflects an increase of $735 million in military pay costs and $1, 143 million in civilian employee These increases are pay costs between fiscal years 1968 and 1969. attributable almost entirely to increased rates of pay approved by the Congress.