DoD understimates future costs, report says

Thursday - 7/12/2012, 10:27am EDT

The Defense Department is underestimating its future costs.

The Congressional Budget Office looked at the department's plans for the next five years. It said they would cost DoD $123 billion, or 5 percent more than the department thinks. That was because military pay and health care costs would go up significantly.

Lawmakers have rejected the Department's requests to raise premiums on beneficiaries. CBP also said the cost of upgrading weapons systems will rise dramatically about 26 percent.

This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.