DEF-34 LIMIT MILITARY PAY RAISES

                                   Annual Savings                 Cumulative
                                (Millions of dollars)              Five-Year
Savings from         -----------------------------------------      Savings
CBO Baseline         1994     1995      1996     1997     1998
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Savings in Total Federal Budget

Budget Authority      530      700       720      740      760       3,450

Outlays               500      690       720      730      750       3,390

Savings in Defense Budget

Budget Authority      720      950       970      990     1,010      4,640

Outlays               680      930       960      980     1,010      4,560
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NOTE:  Savings in the federal and Department of Defense budgets differ
       because of the effects of accrual accounting for military retirement
       and other pay costs that are offset in the federal budget.

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