September 12, 1981

Memorandum for the Secretary of Defense, the Director of the Office of Management and Budget

Subject: Defense Budget Outlay Ceilings

I am pleased that following our meetings on this subject, your further discussions have resulted in agreed defense budget outlay ceilings for fiscal years 1982-84. I hereby approve your agreement and direct that defense planning and programming be consistent with these outlay ceilings:

Revised defense outlay ceiling:

          Fiscal year:
                   1982 .... 181.8
                   1983 .... 214.9
                   1984 .... 242.6

I appreciate the spirit in which you have reached this agreement, and firmly believe that we have struck the balance necessary to assure both an increasingly strong defense and the economic health on which defense and wellbeing depend.

Ronald Reagan