[Appendix, Budget of the United States Government, Fiscal Year 1998]
[Page 111-113]

 
                         MILITARY SALES PROGRAMS

                              Federal Funds

Public enterprise funds:

                    Special Defense Acquisition Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-4116-0-3-155      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
10.00 Total obligations (object class 
        25.2)...........................                       2           7
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.90 Unobligated balance available, 
        start of year: Fund balance.....         343         194         194
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                       2           1
22.40 Capital transfer to general fund..        -149
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         194         196         195
23.95 New obligations...................                      -2          -7
24.90 Unobligated balance available, end 
        of year: Fund balance...........         194         194         188
----------------------------------------------------------------------------

    New budget authority (gross), detail:
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         173         166         106
68.27   Capital transfer to general fund        -173        -166        -106
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total).....................
----------------------------------------------------------------------------

    Change in unpaid obligations:
72.90 Unpaid obligations, start of year: 
        Obligated balance: Fund balance.         111          75          43
73.10 New obligations...................                       2           7
73.20 Total outlays (gross).............         -36         -32         -22
73.45 Adjustments in unexpired accounts.                      -2          -1
74.90 Unpaid obligations, end of year: 
        Obligated balance: Fund balance.          75          43          27
----------------------------------------------------------------------------

    Outlays (gross), detail:
86.98 Outlays from permanent balances...          36          32          22
----------------------------------------------------------------------------

    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -173        -166        -106
----------------------------------------------------------------------------

    Net budget authority and outlays:
89.00 Budget authority..................        -173        -166        -106

[[Page 112]]

90.00 Outlays...........................        -137        -134         -84
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    This fund shows the financing transactions related to the transfer 
of defense articles and services to foreign countries and international 
organizations. This program is being phased out.


                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   11-4116-0-3-155    1995 actual    1996 actual     1997 est.      1998 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         454            269           237            215
        Investments in US securities:
1106      Receivables, net..............          25             34            25             25
1802  Other Federal assets: Inventories 
        and related properties..........         204            138            52             37
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         683            441           314            277
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................                          1
      Non-Federal liabilities:

2201    Accounts payable................                          1
2207    Other...........................         161            239           280            277
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         161            241           280            277
    NET POSITION:
3200  Invested capital..................         522            200            34
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         522            200            34
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         683            441           314            277
-----------------------------------------------------------------------------------------------

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                               Trust Funds

                    Foreign Military Sales Trust Fund

              Unavailable Collections (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8242-0-7-155      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
    Balance, start of year:
01.99 Encumbered future receipts, start 
        of year.........................     -18,788     -19,340     -20,100
    Receipts:
02.01 Deposits, advances, foreign 
        military sales..................      14,747      13,760      13,400
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...      -4,041      -5,580      -6,700
    Appropriation:
05.01 Foreign military sales trust fund.     -15,299     -14,520     -13,490
07.99 Total balance, end of year........     -19,340     -20,100     -20,190
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               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8242-0-7-155      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Reimbursable activity:

00.01   Military personnel..............          96          91          84
00.02   Operations and maintenance......         292         277         257
00.03   Procurement.....................      13,020      12,338      11,498
00.04   Research, development, test, and 
          evaluation....................          23          21          20
00.05   Special defense acquisition fund         173         166         106
00.06   Revolving and mgt funds.........       1,201       1,140       1,059
00.07 Construction......................         139         132         123
00.08 Other.............................         355         355         343
                                           ---------   ---------  ----------
09.00   Sub-total, Reimbursable 
          Obligations...................      15,299      14,520      13,490
                                           ---------   ---------  ----------
10.00   Total obligations (object class 
          25.3).........................      15,299      14,520      13,490
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    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      15,299      14,520      13,490
23.95 New obligations...................     -15,299     -14,520     -13,490
----------------------------------------------------------------------------

    New budget authority (gross), detail:
60.27 Appropriation (trust fund, 
        indefinite).....................      14,747      13,760      13,400
60.49 Portion applied to liquidate 
        contract authority..............     -14,747     -13,760     -13,400
                                           ---------   ---------  ----------
63.00   Appropriation (total)...........
66.15 Contract authority (indefinite)...      15,299      14,520      13,490
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      15,299      14,520      13,490
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    Change in unpaid obligations:
      Unpaid obligations, start of year:

        Obligated balance:
72.40     Appropriation.................       5,462       5,887       5,987
72.49     Contract authority............      18,788      19,340      20,100
                                           ---------   ---------  ----------
72.99     Total unpaid obligations, 
            start of year...............      24,250      25,227      26,087
73.10 New obligations...................      15,299      14,520      13,490
73.20 Total outlays (gross).............     -14,323     -13,660     -13,280
      Unpaid obligations, end of year:

        Obligated balance:
74.40     Appropriation.................       5,887       5,987       6,107
74.49     Contract authority............      19,340      20,100      20,190
                                           ---------   ---------  ----------
74.99     Total unpaid obligations, end 
            of year.....................      25,227      26,087      26,297
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    Outlays (gross), detail:
86.97 Outlays from new permanent 
        authority.......................       1,647       1,571       1,527
86.98 Outlays from permanent balances...      12,676      12,089      11,753
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      14,323      13,660      13,280
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    Net budget authority and outlays:
89.00 Budget authority..................      15,299      14,520      13,490
90.00 Outlays...........................      14,323      13,660      13,280
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            Status of Contract Authority (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8242-0-7-155      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------
0100  Balance, start of year............      18,788      19,340      20,100
    Contract authority:
0200  Contract authority................      15,299      14,520      13,490
0400  Appropriation to liquidate 
        contract authority..............     -14,747     -13,760     -13,400
0700  Balance, end of year..............      19,340      20,100      20,190
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    This trust fund facilitates government-to-government sales of 
defense articles, defense services, and design and construction 
services. Estimates of sales used in this budget are (in millions of 
dollars):

                                     1996 actual  1997 est.   1998 est.
Estimates of new orders (sales).....      10,339      10,555      10,544

    Orders placed through this trust fund can be combined with 
procurement for U.S. military departments. The savings are shared by the 
United States and foreign governments. The net impact of foreign 
military sales on the budget is (in thousands of dollars):

                                     1996 actual  1997 est.   1998 est.
Obligations of the fund.............      15,299      14,520      13,490
Receipts from foreign governments 
(appropriation).....................     -14,747     -13,760     -13,400
                                    ------------------------------------
    Net budget authority............         562         760          90
                                    ====================================
Payments from the fund (outlays)....      14,322      13,660      13,280
Receipts from foreign governments 
(appropriation).....................     -14,747     -13,760     -13,400
                                    ------------------------------------
    Net outlays.....................        -425        -100        -120
                                    ====================================

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                 Kuwait Civil Reconstruction Trust Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 11-8238-0-7-155      1996 actual   1997 est.   1998 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance available, 
        start of year: Uninvested 
        balance.........................           3           3
22.30 Unobligated balance expiring......                      -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3
24.40 Unobligated balance available, end 
        of year: Uninvested balance.....           3
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[[Page 113]]



    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
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    This trust fund was established to show the U.S. costs in helping 
the Government of Kuwait survey and assess the cost of repairing its 
civil infrastructure. The Government of Kuwait reimburses the United 
States with its own funds for all incurred expenses. Any unused funds 
will be returned to the Government of Kuwait.


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