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.
Friday, March 4, 2011
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.
Thursday, February 17, 2011
Brazil cuts 2011 budget 6.5%
Brazilian Defense Minister Nelson Jobim announced today (15/02) the probable size of the cut in the defense budget for 2011. In all, must contingence R 4.024 billion reals (approx. $2.41 billion), which corresponds to a decrease of 26.5% compared to the 15.165 billion reals earmarked for the defense portfolio in the Annual Budget Law (LOA).
The cut will occur in the discretionary portion of the Ministry’s budget, which includes operating expenditures and maintenance projects of the Armed Forces and other defense-related agencies. This was originally budgeted at 10.292 billion reals. The 4.873 billion difference between the discretionary balance and the Ministry’s total budget refers to the amount set in the budget law that cannot be reduced, such as spending on airspace control.
The announcement of the budget cut was made after Jobim’s meeting this afternoon with the Ministers of Finance, Guido Mantega, and Planning, Miriam Belchior. The minister did not specify which projects will be affected by the budget reduction, but said that the measure will impact the advancement of ongoing activities in most fields related to the Ministry portfolio, some of which may be frozen altogether.
Jobim avoided commenting on the size of the budget cut, which he attributed to the current situation of the economy. "It depends on the outcome of the economy, on economic conditions," he said.
In the coming days, the minister and his staff will review the consequences of the funding cut on the projects of the Armed Forces. The idea is to review the new budget, after the new cuts, to reconcile the needs of central government, of the Armed Forces Command and of defense related agencies such as the National Civil Aviation Agency (ANAC).
FX-2
Jobim said the budget cut will not necessarily impact the decision due this year on the FX-2 project, which calls for the purchase of new combat aircraft and a related technology package for the Air Force.
A report on the issue, which states the Defense Ministry’s position, has been delivered by Jobim to incoming President Dilma Roussef, who will take the final decision on the purchase after consulting the National Defense Council (NDC).
According to the minister, even if the President decides this year, the financial and budgetary effects of the aircraft purchase will only be felt in the budgets for 2012 or 2013. Jobim has reiterated that, after the selection of the winning competitor, negotiations on the purchase, including preparation of the related contracts, should last about a year, as happened with the submarines purchased under the navy’s Prosub project.
Jobim recalled that the decision of the President of the Republic will follow a legal process which includes the submission of the selected proposal to the NDC. It is only after the Council has evaluated on the proposal, and the subsequent decision by the President, that negotiations will begin between representatives of the Brazilian government and the company chosen by this process.
The cut will occur in the discretionary portion of the Ministry’s budget, which includes operating expenditures and maintenance projects of the Armed Forces and other defense-related agencies. This was originally budgeted at 10.292 billion reals. The 4.873 billion difference between the discretionary balance and the Ministry’s total budget refers to the amount set in the budget law that cannot be reduced, such as spending on airspace control.
The announcement of the budget cut was made after Jobim’s meeting this afternoon with the Ministers of Finance, Guido Mantega, and Planning, Miriam Belchior. The minister did not specify which projects will be affected by the budget reduction, but said that the measure will impact the advancement of ongoing activities in most fields related to the Ministry portfolio, some of which may be frozen altogether.
Jobim avoided commenting on the size of the budget cut, which he attributed to the current situation of the economy. "It depends on the outcome of the economy, on economic conditions," he said.
In the coming days, the minister and his staff will review the consequences of the funding cut on the projects of the Armed Forces. The idea is to review the new budget, after the new cuts, to reconcile the needs of central government, of the Armed Forces Command and of defense related agencies such as the National Civil Aviation Agency (ANAC).
FX-2
Jobim said the budget cut will not necessarily impact the decision due this year on the FX-2 project, which calls for the purchase of new combat aircraft and a related technology package for the Air Force.
A report on the issue, which states the Defense Ministry’s position, has been delivered by Jobim to incoming President Dilma Roussef, who will take the final decision on the purchase after consulting the National Defense Council (NDC).
According to the minister, even if the President decides this year, the financial and budgetary effects of the aircraft purchase will only be felt in the budgets for 2012 or 2013. Jobim has reiterated that, after the selection of the winning competitor, negotiations on the purchase, including preparation of the related contracts, should last about a year, as happened with the submarines purchased under the navy’s Prosub project.
Jobim recalled that the decision of the President of the Republic will follow a legal process which includes the submission of the selected proposal to the NDC. It is only after the Council has evaluated on the proposal, and the subsequent decision by the President, that negotiations will begin between representatives of the Brazilian government and the company chosen by this process.
Monday, January 3, 2011
Large Hike in Russia defense spending for 2011
The Russian government confirmed a massive hike in defense spending in a bid to make its Cold War-era forces leaner and meaner. Russia will spend $63 billion, or roughly one-fifth of its overall budget, on national security and defense in 2011, Defensenews.com cited Russian Finance Minister Alexei Kudrin as saying at a meeting Monday with Prime Minister Vladimir Putin.
The figure is much higher than the previously announced $49 billion and a sharp increase from the $42 billion Russia is to spend on defense and security this year. Around $15 billion will go directly into arms purchases, Russia's Vedomosti newspaper reports.
Russia's Deputy Prime Minister Sergei Ivanov recently said that Russia plans to spend as much as $730 billion during the next decade to modernize the weaponry used by its armed forces and other armed government-paid forces.
Observers say much of the money will go into innovative military research and the structural reform of the armed forces, with Moscow planning to radically the cut the number of officers and overall troops to create a more modern and mobile force.
In a bid to allocate that money efficiently, Russian President Dmitry Medvedev reportedly wants to create an agency modeled after the U.S. Defense Advanced Research Projects Agency. A direct response to the launch of the Soviet Sputnik satellite, DARPA was launched in 1958 to coordinate and push technological modernization of the U.S. defense portfolio. It reports directly to senior Department of Defense management.
"I think our country also needs an effective organization to work on placing orders for breakthrough research and development in the interests of our defense and security, including promising new research that in some cases can be very risky," Medvedev was quoted as saying by the RBC Daily in September.
Eager to completely overhaul the Russian armed forces and to replace its Soviet-era equipment, the Kremlin has in the past voiced its frustration with the domestic industry. Arguing that some of the Russian-made products aren't up to date, Moscow has urged firms to step up their product portfolio and internal procedures to become more competitive.
Russian Defense Minister Anatoly Serdyukov said last month Russia might have to buy weapons abroad and could even purchase equipment from its former Cold War foe United States.
Russia is locked in negotiations with France over one or several Mistral class helicopter carriers with the price tag for one vessel reportedly at $380 million.
It has to be noted, however, that Russia still is one of the world's most successful arms exporters, with Russian-made tanks and helicopters among the best-sold products.
The costly overhaul of the Russian military comes as forces in Europe face severe budget cuts because of the recession.
The figure is much higher than the previously announced $49 billion and a sharp increase from the $42 billion Russia is to spend on defense and security this year. Around $15 billion will go directly into arms purchases, Russia's Vedomosti newspaper reports.
Russia's Deputy Prime Minister Sergei Ivanov recently said that Russia plans to spend as much as $730 billion during the next decade to modernize the weaponry used by its armed forces and other armed government-paid forces.
Observers say much of the money will go into innovative military research and the structural reform of the armed forces, with Moscow planning to radically the cut the number of officers and overall troops to create a more modern and mobile force.
In a bid to allocate that money efficiently, Russian President Dmitry Medvedev reportedly wants to create an agency modeled after the U.S. Defense Advanced Research Projects Agency. A direct response to the launch of the Soviet Sputnik satellite, DARPA was launched in 1958 to coordinate and push technological modernization of the U.S. defense portfolio. It reports directly to senior Department of Defense management.
"I think our country also needs an effective organization to work on placing orders for breakthrough research and development in the interests of our defense and security, including promising new research that in some cases can be very risky," Medvedev was quoted as saying by the RBC Daily in September.
Eager to completely overhaul the Russian armed forces and to replace its Soviet-era equipment, the Kremlin has in the past voiced its frustration with the domestic industry. Arguing that some of the Russian-made products aren't up to date, Moscow has urged firms to step up their product portfolio and internal procedures to become more competitive.
Russian Defense Minister Anatoly Serdyukov said last month Russia might have to buy weapons abroad and could even purchase equipment from its former Cold War foe United States.
Russia is locked in negotiations with France over one or several Mistral class helicopter carriers with the price tag for one vessel reportedly at $380 million.
It has to be noted, however, that Russia still is one of the world's most successful arms exporters, with Russian-made tanks and helicopters among the best-sold products.
The costly overhaul of the Russian military comes as forces in Europe face severe budget cuts because of the recession.
Wednesday, December 22, 2010
Ireland cuts budget for 2011
“In 2011 the Department of Defence and the Defence Forces, like all areas of the public service, will operate on a reduced budget. The gross allocation in 2011 for Defence and Army Pensions combined is EUR 933m, an overall reduction of 4% on the 2010 allocation. Defence spending at EUR 725m (including capital spending) will be down by EUR 30m (4%) on the 2010 Estimate. The provision for Army Pensions (Vote 37) for 2011 is EUR 208m, which is a non-discretionary expenditure. Vote 36 (Defence) and 37 (Army Pensions)
The expenditure reductions will be delivered through the reduction in participation in overseas peacekeeping, particularly the withdrawal from Chad and the reductions in numbers serving in Kosovo and Bosnia- Herzegovina. Savings will also be achieved through the postponement of expenditure on equipment and capital works across the Defence Forces.
There are currently 2 aircrafts available for the Ministerial Air Transport Service. The Gulfstream IV aircraft is in service for almost 20 years and no provision has been made in the Estimates for a replacement or for any major structural repair. The Learjet aircraft will continue in operation.
While there have been reductions in the overall Defence budget, steady investment since 2000 means that the Defence Forces are well placed in addressing the challenges for 2011 and the adjustments required under the National Recovery Plan.
The procurement of two new naval vessels will continue within the reduced allocation for Defence spending.
All of the main savings indentified in the Special Group on Public Service Numbers and Expenditure Programmes have already been implemented or alternative savings identified.”
“The priority in the coming year will be on maintaining the capability of the Defence Forces to deliver effective services across all of the roles assigned by Government.
Ireland remains open to participation in peace keeping operations with such participation reflecting the reduced budgetary resources. The Defence Forces retain the capacity to deploy overseas. No decisions have been made by the Government in relation to new peace keeping operations.” added Minister Killeen.
Friday, December 10, 2010
Sri Lanka Spending $1.9B in 2011
COLOMBO, Sir Lanka -The Sri Lanka government has allocated SLR215 billion ($1.92 billion) for defense for 2011, amounting to 20 percent of the national budget and representing an increase of 6 percent over last year's budget. Much of this budget is due to large installment payments on military hardware bought over the years. These will continue to dominate the military budget for some time.
As usual, the 200,000-strong Sri Lanka Army will absorb just over half of the entire defense spending to maintain its personnel. A substantial proportion of this will be spent on new bases and cantonments needed to accommodate troops in the northern and eastern provinces, replacing the existing makeshift shelters.
Also acting to increase the defense budget is the consolidation of a number of paramilitary budgets from other ministries into the Ministry of Defense.
As usual, the 200,000-strong Sri Lanka Army will absorb just over half of the entire defense spending to maintain its personnel. A substantial proportion of this will be spent on new bases and cantonments needed to accommodate troops in the northern and eastern provinces, replacing the existing makeshift shelters.
Also acting to increase the defense budget is the consolidation of a number of paramilitary budgets from other ministries into the Ministry of Defense.
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