©graphs/blotty-dreamstime.com Electronics Production | January 30, 2012
Major defense companies affected by budget cuts
The Pentagon's new 2013 budget plan would cut $487 billion in spending over ten years, impacting top suppliers Lockheed Martin, Boeing, General Dynamics, Northrop Grumman and Raytheon.
A preview of the budget, to be made public on February 13, shows that the pentagon will request a $525 billion base budget for the 2013 fiscal year, compared to this year’s approved budget of $531 billion. The budget is the first since the Budget Control Act was passed by Congress , requiring the Pentagon to cut $487 billion over the next decade. With the decrease in spending, the budget will limit the purchase of weapons such as Lockheed's F-35 Joint Strike Fighter, as well as other vehicles.The new budget will cut nearly 10 percent of fighter jet squadrons. Despite the decrease in spending in the plan however, congress is able to intervene in the pentagon's budget and make amendments. ----- Source: Reuters