Sec. 6281. Comparative studies on defense budget transparency of the People's Republic of China, the Russian Federation, and the United States
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Not later than 270 days after the date of the enactment of this Act, the Secretary of Defense, acting through the Director of the Defense Intelligence Agency, in consultation with the Under Secretary of Defense (Comptroller), the Director of the Office of Cost Assessment and Program Evaluation, the Director of the Office of Net Assessment, the Assistant Secretary of Defense for Indo-Pacific Security Affairs, and the Assistant Secretary of Defense for International Security Affairs, shall complete a comparative study on the defense budgets of the People's Republic of China, the Russian Federation, and the United States.
Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall offer to enter into an agreement with not more than two entities independent of the Department to conduct a comparative study on the defense budgets of the People's Republic of China, the Russian Federation, and the United States, to be completed not later than 270 days after the date of the enactment of this Act. Not fewer than one entity described in subparagraph
(A)shall be a federally funded research and development center. The goal of the studies required by subsection
(a)shall be to develop a methodologically sound set of assumptions to underpin a comparison of the defense spending of the People's Republic of China, the Russian Federation, and the United States. Each study required by subsection
(a)shall do the following: Develop consistent functional categories for spending, including— defense-related research and development; weapons procurement; operations and maintenance; and pay and benefits. Consider the effects of purchasing power parity and market exchange rates, particularly on nontraded goods. Consider differences in the relative prices of goods and labor within each subject country. Compare the costs of labor and benefits for the defense workforce of each subject country. Account for discrepancies in the manner in which each subject country accounts for certain functional types of defense-related spending. Explicitly estimate the magnitude of omitted spending from official defense budget information. Evaluate the adequacy of the United Nations database on military expenditures. Exclude spending related to veterans’ benefits. Not later than 30 days after the date on which the studies required by subsection
(a)are completed, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the results of each study, together with the views of the Secretary on each study. The report required by subsection
(d)shall be submitted in unclassified form, but may include a classified annex.