Brazil MoD requests 63.7B Real for 2012

The Brazilian military has requested BRL63.7 billion (USD34.9 billion) for a 2012 defence budget that includes more than BRL8 billion (USD4.38 billion) in procurement funds, marking an 18 per cent increase in procurement on last year's budget.

The funding request must be approved by Congress, which traditionally changes or augments the budget.

In the 2012 budget Brazil's Ministry of Defence (MoD) would administer BRL900 million for its intra-service H-XBR medium-lift helicopter programme, which comprises local production of 50 EC 725s, as well as a new satellite communications system (SISCOMIS) valued at BRL7 million.

The Brazilian Air Force's (FAB's) request would fund the BRL544 million development of a multirole KC-390 tanker/transport, BRL309 million air surveillance and defence system (SISCEAB) and BRL716 million would pay for a number of comprehensive upgrade projects for its legacy aircraft fleets.

The FAB's budget request does not include any funding for the long-delayed F-X2 multirole fighter programme, which is an indication that a decision on the platform will likely be further postponed.

The Brazilian Navy's budget focuses mainly on its submarine infrastructure programme and includes BRL1.2 billion for a new submarine base. The navy is also seeking BRL930 million for continued work on its nuclear and conventional submarine fleets.

Other budget items include BRL73 million for the next phase of the NAPA-500 littoral patrol vessel and BRL65 million to begin the NAPA-1800 programme that is expected to see an existing offshore patrol vessel design selected in 2012. There is no mention of funding for the 11-ship Surface Warfare Programme.

Naval aviation would receive BRL222 million to fund comprehensive upgrades for 14 aircraft, including recently acquired C-1A Traders and long-serving AF-1 Skyhawks.

The army has requested BRL231 million for an initial 64 VBTP-MR Guarani 6x6 armoured personnel carriers, about BRL97 million for continued construction and equipment for its new border system (SISFRON), BRL55 million for light weapons and munitions and BRL90 million for the country's new cyber-defence centre.

France 2012 ups defense 1.6% to 31.7B Euro

PARIS - France increased its 2012 defense budget 1.6 percent to 31.7 billion euros ($43.1 billion) from 31.1 billion euros in 2011, helped by exceptional revenues of 1.1 billion euros from the sale of radio frequencies and property, the Defense Ministry said Sept. 29.
The headline equipment budget rose 3 percent to 16.5 billion euros from 16 billion euros, which includes maintenance and infrastructure. Some 10 billion euros have been earmarked for equipment procurement, said the financial affairs director for the secretary general.

The annual defense budget was 300 million euros short of the multiyear military budget law, but represented a "notable effort" given the financial difficulties, the official said.
Louis Gautier, international relations professor at Lyons University, said the budget was a notional one, a "trompe l'oeil," as presidential and parliamentary elections starting in May mean a new government will implement the budget. A government of right or left would likely "tighten the budgetary screws," he said.
A report on the 2011 defense budget by the French Senate finance committee, published October 2010, pointed to a likely funding gap of up to 36 billion euros by 2020, referring to missions in the 2008 defense white paper. An absence of exceptional revenues would cause the financial shortfall, the report said. The white paper is being updated, with the revised version to be published in 2012.

Germany 2012 Defense Spend to rise to EUR 31.7B (+133M)

BERLIN - German defense spending would rise to 31.7 billion euros ($44.5 billion), up 133 million euros, under a 306 billion-euro 2012 federal budget presented to Parliament on Sept. 7.
Thomas de Maizière said during the parliamentary debate Sept. 7 that the budget would shrink to 30.4 billion euros by 2015.

Personnel costs in 2012 would account for about 10.3 billion euros, less than one-third of the total and down nearly 1.7 billion from this year.
The budget includes 200 million euros to help recruit service members into a military that suspended conscription in July, de Maizière said.
"Germany needs combat-ready and serviceable armed forces, which in quality of equipment and training match the international significance and weight of our country," he said.
The secretary said he has reviewed ongoing procurement programs and will talk to industry, potentially to renegotiate existing contracts.
The 2012 budget contains 1.08 billion euros for Germany's current nine operations abroad, up 30 percent from this year's.
Now the accordant committees of the parliament and the Bundesrat, the parliament's upper house, will discuss the 2012 budget and case final ballots in December.

Finland 2012 Defense Budget Cut $130M

HELSINKI - Finland's Armed Force's Command (AFC) has proposed making significant cuts in peacetime strength and wartime mobilization levels, with defense chief Gen. Ari Puheloinen warning that low defense spending has forced the AFC to abandon plans to establish a Home Guard.
Proposals include reducing the length of military service as a cost-saving measure, rotating reservists out of forces earmarked for frontline service at a younger age, and reducing military exercises, training and refresher courses for reservists.

"These cutbacks will be necessary if we are to adapt to the level of funding in the future, and protect our defense capability," Puheloinen said.
The proposals are intended to accommodate a likely $130 million cut in its budget for 2012. Spending on defense in 2011 will run to $4.2 billion.
The AFC's cost-savings proposal includes the closure of some military bases by 2013. This will be done as part of the ongoing National Defense Reform Program, which will also see the introduction of a more centralized leadership structure and the discontinuation of the existing four Provincial Command military districts.
These measures will also force the AFC to reduce the number of professional soldiers across all ranks and will also lead to the layoff of administrative civilian personnel in the military.

$6.82B for Sweden Defense in 2012

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.