But after adjusting for inflation, Federal obligations for research will rise slightly, by under 1 percent. The estimated obligations provided in this report are subject to change as Federal agencies' budgets are updated to reflect approved programs. DoD's obligations drop on average 1 percent annually. In constant dollars, its funding decreases at an estimated annualized rate of 4 percent over this eight-year period. Advanced technology includes development for military and nondefense applications.
Major systems includes testing and evaluation of mostly defense-related systems.
This Federal Funds volume is the third report to include such statistics on development funding. However, three of these four DoD funders expect decreases in major systems development in FY 1998-Army and Navy expect declines of 1 percent and 3 percent, respectively, and BMDO is slated to drop 23 percent. The share of Federal obligations for basic research has been increasing slowly since FY 1992. That percentage increased slightly each year and reaches 21 percent in FY 1998, according to preliminary estimates. Change in the applied research share has been similar to that for basic research throughout this period.