Philippine President Benigno S. Aquino III has approved the proposed 1.82 trillion pesos (41.85 billion U.S. dollars) national budget for 2012, a senior government official said on Thursday.
The proposed budget is 10.4 percent higher than the current year's, which reflects his commitment to fulfill his "social contract" with Filipinos, according to Budget Secretary Florencio Abad.
"This is a budget that is focused on achieving results: that the dividends of good governance reach the poor in a direct, immediate and substantial way," he said.
The proposed budget is focused on the five key result areas of the Social Contract: anti-corruption and good governance, poverty reduction and the empowerment of the poor, inclusive economic growth, just and lasting peace and the rule of law and integrity of the environment.
Abad said over 30 percent of the proposed budget will go to social services -- basic education, public health and the conditional cash transfer program. About 25 percent of the proposed budget will be alloted to the economic services sector to finance infrastructure and other capital outlays for agriculture, tourism and industrial development.
The general public services sector will receive 17.7 percent of the 2012 proposed budget, while the defense sector will receive 6. 1 percent.
To sustain fiscal consolidation efforts, the share of the debt burden on the national budget will decrease to 20.2 percent. A fiscal deficit of 286 billion pesos (6.58 billion U.S. dollars) or 2.6 percent of gross domestic product (GDP) is targeted in 2012.
Aquino will submit the budget to Congress on July 26, a day after de delivers the State of the Nation Address.
Monday, July 11, 2011
S Korea: MND requests 6.6% budget increase, 33.5T Won for 2012
The defense ministry said on Thursday it has requested an increased budget for next year to ensure better combat readiness for the armed forces.
In a news release, the ministry said it has called for an annual budget of 33.5 trillion won (US$29.1 billion) for 2012, a 6.6-percent increase from the 31.4 trillion won set for 2011.
According to the ministry, spending on operating troops and maintaining battle capabilities account for most of the increase.
"Our request was largely focused on building a military that's ready for battle and can win immediately," the ministry's statement said. "We will also try to improve the welfare of our troops and boost their morale, and to keep pushing for defense reform."
Of the 33.5 trillion won requested, 4.3 trillion won has been earmarked for fortifying the western islands to better shield them from potential North Korean provocations by bringing in the latest weaponry and improving guard posts. Last month, the military launched a new defense command to protect the five frontline islands.
Another 3.5 trillion has been set aside to improve the welfare of troops. The ministry said it plans to expand vaccination coverage for new trainees, to open new medical facilities and to improve medical equipment across units. Barracks for conscripted soldiers and off-base living quarters for officers will also be gradually improved.
The ministry allocated 1.9 trillion won to help avoid a potential security void in 2015, when South Korea takes over wartime operational control of its troops from the U.S.
"To prepare for the transfer of the wartime control, we will strengthen the command and control structure," the ministry said. "We will also help with the construction of the war game center."
The U.S. has held wartime command of South Korean troops since the beginning of the 1950-53 Korean War, which ended in an armistice, not a peace treaty. Seoul regained peacetime control of its military in 1994.
About 28,500 U.S. troops are stationed here as a deterrent against the North. When wartime operational control is handed over in 2015, the South's military will take charge with support from U.S. troops.
The ministry said more than 3.4 trillion won has been allocated to aid policy decisions as part of defense reform. It said the moves will include opening up new commands or reorganizing existing ones, and increasing spending on defense research and development.
A set of defense reform bills was approved by the Cabinet in May and was sent to the National Assembly for approval. The reform plans center on ensuring a more efficient command structure and giving the chairman of the Joint Chiefs of Staff more authority to control the Army, the Navy and the Air Force.
President Lee Myung-bak has asked for the parliament's cooperation in approving the reform bills. Defense reform has been a top policy goal for Lee, especially after the military's botched response to North Korea's two deadly attacks last year.
In a news release, the ministry said it has called for an annual budget of 33.5 trillion won (US$29.1 billion) for 2012, a 6.6-percent increase from the 31.4 trillion won set for 2011.
According to the ministry, spending on operating troops and maintaining battle capabilities account for most of the increase.
"Our request was largely focused on building a military that's ready for battle and can win immediately," the ministry's statement said. "We will also try to improve the welfare of our troops and boost their morale, and to keep pushing for defense reform."
Of the 33.5 trillion won requested, 4.3 trillion won has been earmarked for fortifying the western islands to better shield them from potential North Korean provocations by bringing in the latest weaponry and improving guard posts. Last month, the military launched a new defense command to protect the five frontline islands.
Another 3.5 trillion has been set aside to improve the welfare of troops. The ministry said it plans to expand vaccination coverage for new trainees, to open new medical facilities and to improve medical equipment across units. Barracks for conscripted soldiers and off-base living quarters for officers will also be gradually improved.
The ministry allocated 1.9 trillion won to help avoid a potential security void in 2015, when South Korea takes over wartime operational control of its troops from the U.S.
"To prepare for the transfer of the wartime control, we will strengthen the command and control structure," the ministry said. "We will also help with the construction of the war game center."
The U.S. has held wartime command of South Korean troops since the beginning of the 1950-53 Korean War, which ended in an armistice, not a peace treaty. Seoul regained peacetime control of its military in 1994.
About 28,500 U.S. troops are stationed here as a deterrent against the North. When wartime operational control is handed over in 2015, the South's military will take charge with support from U.S. troops.
The ministry said more than 3.4 trillion won has been allocated to aid policy decisions as part of defense reform. It said the moves will include opening up new commands or reorganizing existing ones, and increasing spending on defense research and development.
A set of defense reform bills was approved by the Cabinet in May and was sent to the National Assembly for approval. The reform plans center on ensuring a more efficient command structure and giving the chairman of the Joint Chiefs of Staff more authority to control the Army, the Navy and the Air Force.
President Lee Myung-bak has asked for the parliament's cooperation in approving the reform bills. Defense reform has been a top policy goal for Lee, especially after the military's botched response to North Korea's two deadly attacks last year.
Wednesday, June 15, 2011
Bulgaria budget up 300M leva in 2011
Bulgaria may team up with Turkey, Romania and Croatia in buyng modern jet fighters. “If the relevant authorities reach consensus we may share the new fighters and have common training bases for pilots and technical personnel,” PM Boyko Borisov commented. Yesterday, the PM arrived in the Black Sea city of Varna together with NATO Secretary General Anders Fogh Rasmussen where they will attend the conference of the Alliance. Before the discussions started the two statesmen had a tete-a-tete for over one hour. During the meeting the NATO top official extended his thanks to Sofia for the Bulgarian participation in the NATO missions in Afghanistan and Libya. According to Rasmussen the NATO potential should be used more efficiently and interoperability of the member countries should be enhanced. He gave as an example of good cooperation the purchase of three C-17 by NATO countries that will be used jointly. He recommended that similar projects should be implemented in other spheres, too.
PM Boyko Borissov pointed out that in spite of the crisis last year the government has allotted 300M leva more for the defense budget. In his words currently Bulgaria is working with Romania, Croatia and Turkey on joint projects.
Regarding the anti-missile shield PM Borissov stated categorically his support for dislocating elements of the system in Bulgaria. “Our only requirement is the system to protect the entire territory of Bulgaria. From that point on – in which countries what part and what elements to be dislocated depends entirely on NATO technical and strategic decisions,” PM Borissov underlined.
PM Borissov appealed to NATO saying it should carefully consider Bulgaria's position regarding the situation in Libya. As of next week Sofia will take part in a contact group which takes political decisions connected with the military operation in Libya.
"My request is that the stand of Bulgaria's Foreign Minister be carefully listened to by the members of the contact group as Bulgaria has had the possibility to hold negotiations with Libya and know well part of the opposition in Libya which is presently in Benghazi," PM Borissov stated on the last day of the sitting of the NATO Parliamentary Assembly held in the Black Sea city of Varna, northeastern Bulgaria.
PM Borissov expressed his regret that the actions against Gaddafi had come late pointing that Libya held Bulgarian medics as hostages for many years before the eyes of the international community.
PM Boyko Borissov pointed out that in spite of the crisis last year the government has allotted 300M leva more for the defense budget. In his words currently Bulgaria is working with Romania, Croatia and Turkey on joint projects.
Regarding the anti-missile shield PM Borissov stated categorically his support for dislocating elements of the system in Bulgaria. “Our only requirement is the system to protect the entire territory of Bulgaria. From that point on – in which countries what part and what elements to be dislocated depends entirely on NATO technical and strategic decisions,” PM Borissov underlined.
PM Borissov appealed to NATO saying it should carefully consider Bulgaria's position regarding the situation in Libya. As of next week Sofia will take part in a contact group which takes political decisions connected with the military operation in Libya.
"My request is that the stand of Bulgaria's Foreign Minister be carefully listened to by the members of the contact group as Bulgaria has had the possibility to hold negotiations with Libya and know well part of the opposition in Libya which is presently in Benghazi," PM Borissov stated on the last day of the sitting of the NATO Parliamentary Assembly held in the Black Sea city of Varna, northeastern Bulgaria.
PM Borissov expressed his regret that the actions against Gaddafi had come late pointing that Libya held Bulgarian medics as hostages for many years before the eyes of the international community.
Slovak Defense Minister Warns of Military Collapse Unless Funding Increases
Slovakia's defense minister, Lubomir Galko, recently warned that unless defense funding receives increased attention, the Slovak armed forces will begin to break down within a few years. Slovakia has underfunded its military for years, and with a year-old center-right government under Prime Minister Iveta Radicova implementing an austerity diet, the likelihood that an uptick in defense spending will be forthcoming is close to zero.
Successive Slovak governments have viewed defense funding as an afterthought, from the center-right Dzurinda government which promised to meet an annual level of 1.85 percent of GDP for defense under its Model 2015 (or Long-Term Development Plan 2015) defense modernization effort to the populist, leftist Fico government, which saw defense as an area to trim in favor of social welfare programs. The Model 2015 plan has since crawled to a standstill and the Slovak armed forces are now in a state of atrophy.
Defense Minister Galko informed the Slovak National Council (parliament) on March 24, 2011, that because of the limited level of funding they have received, the armed forces are now funded on an 86:14 personnel/modernization basis. That ratio, he warned, will widen to 90:10 in 2012 unless the slide of the defense budget is reversed.
Still, defense funding has slipped by nearly 10 percent in 2011, from EUR820 million last year to EUR740 million ($1.199 billion). Some 70 percent of the military equipment used by ground forces has reached the end of its operating life. If it is not modernized or replaced with new matériel, 90 percent of the ground forces' military equipment will be obsolescent by 2014. Moreover, in order to merely maintain the Slovak armed forces in the depleted shape they are in, Galko contends, the government would have to fund defense at a level of 1.56 percent of GDP - far below the 2 percent required of NATO Alliance members.
Successive Slovak governments have viewed defense funding as an afterthought, from the center-right Dzurinda government which promised to meet an annual level of 1.85 percent of GDP for defense under its Model 2015 (or Long-Term Development Plan 2015) defense modernization effort to the populist, leftist Fico government, which saw defense as an area to trim in favor of social welfare programs. The Model 2015 plan has since crawled to a standstill and the Slovak armed forces are now in a state of atrophy.
Defense Minister Galko informed the Slovak National Council (parliament) on March 24, 2011, that because of the limited level of funding they have received, the armed forces are now funded on an 86:14 personnel/modernization basis. That ratio, he warned, will widen to 90:10 in 2012 unless the slide of the defense budget is reversed.
Still, defense funding has slipped by nearly 10 percent in 2011, from EUR820 million last year to EUR740 million ($1.199 billion). Some 70 percent of the military equipment used by ground forces has reached the end of its operating life. If it is not modernized or replaced with new matériel, 90 percent of the ground forces' military equipment will be obsolescent by 2014. Moreover, in order to merely maintain the Slovak armed forces in the depleted shape they are in, Galko contends, the government would have to fund defense at a level of 1.56 percent of GDP - far below the 2 percent required of NATO Alliance members.
Friday, March 4, 2011
Ukraine cuts troop levels
NEWTOWN, Conn. - Following through with plans announced in July 2010, the Ukrainian Ministry of Defense reported on March 2 that the size of the armed forces will be reduced from 200,000 down to 192,000 by the end of 2011.
Plans call for the armed forces to be gradually reduced by 20 percent by 2015. The final goal is for a force of 150,000-160,000. The total personnel count of 200,000 comprises160,000 military personnel and 40,000 civilians. According to Ukrainian Defense Minister Mykhaylo Yezhel, of the 192,000 that will remain at the end of 2011, 144,000 will be military personnel.
The cuts are part of the military's reorganization strategy which also calls for defense spending to grow significantly in the coming years. In the short term, the MoD expects spending to increase by 15-20 percent by 2015, while long-term spending will to climb to $4.2 billion by 2023. Currently, the defense budget totals around $1.1 billion, with an additional $584 million available from a special fund.
Plans call for the armed forces to be gradually reduced by 20 percent by 2015. The final goal is for a force of 150,000-160,000. The total personnel count of 200,000 comprises160,000 military personnel and 40,000 civilians. According to Ukrainian Defense Minister Mykhaylo Yezhel, of the 192,000 that will remain at the end of 2011, 144,000 will be military personnel.
The cuts are part of the military's reorganization strategy which also calls for defense spending to grow significantly in the coming years. In the short term, the MoD expects spending to increase by 15-20 percent by 2015, while long-term spending will to climb to $4.2 billion by 2023. Currently, the defense budget totals around $1.1 billion, with an additional $584 million available from a special fund.
Singapore Ups Defense Budget 5.4% for 2011
SINGAPORE - Singapore, which has one of Asia's best-equipped militaries, has raised its national defense budget by 5.4 percent this year, according to government data released Feb. 18.
The government plans to spend S$12.08 billion ($9.5 billion) on defense in the 2011 fiscal year, up from S$11.46 billion the year before.
Singapore's navy, army and air force will get S$11.53 billion to buy and maintain military equipment, for the upkeep of camps and for payment of salaries.
The city-state currently has a population of more than 5 million, a quarter of whom are foreigners.
Singapore's economy grew 14.5 percent in 2010, the fastest in Asia. The defense budget is about 5 percent of gross domestic product.
The government plans to spend S$12.08 billion ($9.5 billion) on defense in the 2011 fiscal year, up from S$11.46 billion the year before.
Singapore's navy, army and air force will get S$11.53 billion to buy and maintain military equipment, for the upkeep of camps and for payment of salaries.
The city-state currently has a population of more than 5 million, a quarter of whom are foreigners.
Singapore's economy grew 14.5 percent in 2010, the fastest in Asia. The defense budget is about 5 percent of gross domestic product.
Tuesday, March 1, 2011
India 2011-12 Defense Budget up 8.4%
India has allocated $44.4 billion to defense for the fiscal year beginning April 1, up by 8.4% from the current fiscal year.
Of this, defense services will receive $35.74 billion, which includes capital procurement of $15 billion, an increase of 13.75% over this year.
India’s defense spending will represent about 2.72% of the country’s GDP — up from last year’s 2.41% — as figured in the budget announced Feb. 28. However, the budget falls short of reaching at least the 3% of the GDP that many were expecting. Investment in the sector also has lagged as a result of limited foreign direct investment in Indian defense ventures, which remains capped at 26%.
With an increased emphasis on homeland security following the Mumbai terrorist attacks of November 2008, budgets have steadily increased for police and paramilitary forces performing border and coastal surveillance. The allocation for homeland security is $10.17 billion, up from $8.75 billion this year. “There is no limit to the homeland security budget. Whatever is asked for, it is given,” an official said a few months ago.
“The total defense budget accounts for about 13.07% of the total central government expenditure,” says Nidhi Goyal, Deloitte’s director in India. “If the scope of national defense is enlarged to [include] national security, it would include expenses for civil defense, security aspects of the department of space, expenditurse of the ministry of home affairs, [and] research and development, which account for about 21.03% of [the] total government budget.”
Total defense services spending in India from 2001-11 has been increasing by a nominal compound average growth rate of 11.37% per year, Goyal adds.
Of this, defense services will receive $35.74 billion, which includes capital procurement of $15 billion, an increase of 13.75% over this year.
India’s defense spending will represent about 2.72% of the country’s GDP — up from last year’s 2.41% — as figured in the budget announced Feb. 28. However, the budget falls short of reaching at least the 3% of the GDP that many were expecting. Investment in the sector also has lagged as a result of limited foreign direct investment in Indian defense ventures, which remains capped at 26%.
With an increased emphasis on homeland security following the Mumbai terrorist attacks of November 2008, budgets have steadily increased for police and paramilitary forces performing border and coastal surveillance. The allocation for homeland security is $10.17 billion, up from $8.75 billion this year. “There is no limit to the homeland security budget. Whatever is asked for, it is given,” an official said a few months ago.
“The total defense budget accounts for about 13.07% of the total central government expenditure,” says Nidhi Goyal, Deloitte’s director in India. “If the scope of national defense is enlarged to [include] national security, it would include expenses for civil defense, security aspects of the department of space, expenditurse of the ministry of home affairs, [and] research and development, which account for about 21.03% of [the] total government budget.”
Total defense services spending in India from 2001-11 has been increasing by a nominal compound average growth rate of 11.37% per year, Goyal adds.
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