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INTERNET AVAILABILITY: This document is available online at http://www.defense.gov SUMMARY OF THE DOD FISCAL 2012 BUDGET PROPOSAL PRINCIPAL OBJECTIVES The fiscal 2012 budget supports the department’s security strategy and builds on the changes introduced by the fiscal 2010 defense budget and the fiscal 2011 budget. As in recent years, the budget for fiscal 2012 is organized around four major themes: 1. Reaffirming and strengthening the nation’s commitment to care for the all-volunteer force, the military’s greatest strategic asset. 2. Balancing America’s defense posture, between capabilities to prevail in current wars and preparing for future conflicts. 3. Continuing the department’s support for troops in the field. 4. Advancing Gates’ agenda to reform the way DoD does business and shifting resources from the defense tail to tooth. Taking Care of People The fiscal 2012 budget includes $142.8 billion in military personnel funding for the pay and allowances of 2.3 million servicemembers. The budget request also supports personnel through the $204.4 billion operation and maintenance (O&M) funding for readiness, training, support for base operating costs, and administrative and headquarters costs. The request reflects the department’s highest priority, which is to provide support for DoD people, whose service ensures the security of the United States and its interests. The President’s Budget for fiscal 2012 includes the following personnel-related highlights: Pay Raise . The fiscal 2012 budget includes a military basic pay increase of 1.6 percent. The pay raise is equal to the full increase in the Employment Cost Index, as prescribed by law, and it will keep military pay in line with raises in the private sector. BAH / BAS . Under the budget, Basic Allowance for Housing (BAH) will increase 4.2 percent, and Basic Allowance for Subsistence (BAS) will increase 3.4 percent. Military Healthcare . The fiscal 2012 budget request includes $52.5 billion to fully fund the military health system (including $32.2 billion for the Defense Health Program), which currently serves 9.6 million eligible beneficiaries -- active duty service members and their families, military retirees and their families, dependent survivors, and certain eligible reserve component members and their families. The proposed budget continues to fund the highest quality care and service, while supporting the department’s ongoing effort to manage costs responsibly. Care for Wounded Warriors . Recognizing that the department has no greater concern than to care for wounded, ill, and injured (WII) servicemembers, the fiscal 2012 budget includes
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