WASHINGTON (Reuters) - Across-the-board spending reductions on January 2 would cut the Pentagon's funding by $54.7 billion in fiscal year 2013, slashing procurement accounts by $15.3 billion and funding for research and development programs by $7.48 billion, the White House budget office told Congress in a report on Friday.
It said the Defense Department would be able to shift funds to maintain war fighting and critical readiness capabilities, but the cuts would reduce the readiness of non-deployed units, delay investments in new equipment and facilities, cut funding for equipment repairs, and reduce research and development efforts.
Operations and maintenance accounts which fund the daily operations of the U.S. military would be cut by $26.4 billion, according to the report by the White House Office of Management and Budget.
(Reporting By Andrea Shalal-Esa; editing by John Wallace)
(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp