Financial Management

Budgeting Cycle

Note: The DoD is back on an annual budgeting cycle.

In 2003, the DoD adjusted its planning, programming, and budgeting procedures to support a two-year cycle that results in two-year budgets. The revised process is described in Management Initiative Decision (MID) 913, dated May 22, 2003. The concept in MID 913 is consistent with submission of a biennial DoD budget that is part of the President’s Budget request to Congress for even-numbered fiscal years (FY) (e.g., the FY 2010 President’s Budget, submitted to Congress in February 2009, contained justification material for both FY 2010 and FY 2011). In this cycle, the even-numbered years are called on-years, while the odd-numbered years are called off-years. [3]

On Year
The On-year (Even Years) will see the release of the Program Objective Memorandums (POM).  Also released is Guidance for Development of the Force (GDF) and Joint Programming Guidance (JPG) covering Fiscal Year (FY) 2014-2019. In August of an even-numbered year, each Military Department and Defense Agency submits a combined POM/Budget Estimate Submission (BES) to the Secretary of Defense (SECDEF). [1]

The Off-Year (Odd Years) is focused on submitting budget changes to program baselines. Also, the Guidance for Development of the Force (GDF) and Joint Programming Guidance (JPG) are issued only at the discretion of the SECDEF. [2]

The below figure represents the PPBE Biennial Cycle for Off-Years. [3]

PPBE Cycle

AcqLinks and References:

Updated: 7/19/2017

Leave a Reply