I used to work for the U.S. Department of Defense and can confidently approve of massive defense budget cuts and merging of several military branches. This is only a single and relatively minor anecdote, but it is a small piece of a much larger problem and is one I can share from personal experience:

I used to be the government lead for a highly successful defensive capability that only consisted of myself and 2-3 defense contractors. We outperformed several long-standing projects that had 10x the staff, 100x the budget, and had been around for approx 10 years without going operational ("operational" in this case meaning that intelligence analysts are authorized to provide actionable intelligence derived solely from the tool). My team released 3 operational releases within 1 calendar year from the start of contract.

I don't say this to disparage the staff of the other project(s), but rather to highlight how the government can afford to cut long-standing under-performing projects and become more lean and efficient. The government funding allocation is often in the realm of $300k/yr for a single FTE. Multiply that by a team of 20-30 that works on a project that is shelfware after 8-10 years.

My same project was approached by numerous branches of the US and FVEY military community. Branch A offered tons of money to put it on a ship; branch B offered even more money to put it in the back of reconnaissance aircraft or fighter jet; branch C offered money to make it man-packable for ground troops. US taxpayers already paid for this capability once (my team and myself) and we made it as unclassified (i.e. disseminable) and modular as possible (it was literally designed to run on a general host computer running Linux), yet each branch was willing to fork over tens of millions of dollars for something they could have installed on a $2k computer using some internal software repository. And that's what I suggested they do.

Again, this is just one minor anecdote. How often does this happen where taxpayers are forced (being that they have absolutely no control over how the defense budget is organized) to pay for the same (perhaps MUCH more expensive) tools e.g. 5-10 times because military branch A, B, C, etc, want their own flavor of the same thing? Why does the military often have pissing matches of authority when there is so much overlap between some of them? Take away their stick by taking away some of their funding, and force them to share and cooperate.