President Barack Obama’s choice of expert budget-cutter Leon Panetta to lead the Defense Department is a clear signal that the White House perceives the nation’s deficit crisis, not the wars in Iraq and Afghanistan, as its toughest challenge/…/As OMB chief, Panetta calculated how much money each agency and department would get. Todd Harrison of the Center for Strategic and Budgetary Assessment sees him as a potential advocate for the Pentagon. “I think having him on the DOD side of the budget battle now will be a real asset to DOD. He knows how OMB works, knows the inner workings of the budget process at the White House. So I think he will be better equipped to negotiate DOD’s top line budget than any of the other candidates” who were considered, Harrison said. Harrison said it is “kind of an unknown” what Panetta’s views are on some of the major budget decisions that he’ll face at the Pentagon. “It remains to be seen how he’s going to favor people, force structure, modernization” or weapons programs, Harrison said of Panetta, who served as a first lieutenant in the Army from 1964-66.