Sweden's Ministry of Defense (MoD) has told the military chiefs to pursue greater economic efficiencies within all core military areas while Defense Minister Sten Tolgfors also announced a defense budget increase next year of $37.4 million. The increase will be largely generated by reducing funding to defense support areas such as research-and-development programs.
"We are adding an important increase to the military's budget for core operating activities, while savings will be made by buying more combat-ready weapons from abroad," Tolgfors said. The 2012 budget plan includes a provision to spend $1.36 billion on equipment and facilities procurement, the minister said.
Under the 2012 budget plan, the Swedish armed forces will receive core funding of $6 billion. This includes the $37.4 million increase. Moreover, a further $835 million has been allocated to defense support functions and services, including military intelligence, the State Defense Export Agency and crisis management planning. This brings the total 2012 defense budget to $6.82 billion.
The 2012 budget will provide more funding for training and exercises with a focus on international missions and deployment, as well as additional monies to core military units under the ongoing Military Reform Program.
The goal is to create practical, available modular combat units, complete with air and naval support if necessary, that can be mobilized and deployed at short notice.
The budget increase happens against a backdrop where the Swedish government is forecasting the country's GDP will decline from 4.8 percent in the current year to 1.5 percent in 2012.
Furthermore, the surplus in Sweden's public finances will be wiped out next year because of a downturn in exports, the general global economy and capital investment. Defense is one of the few areas that will see an actual increase spending in 2012.
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