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Late breaking news:
• $1.1 billion has been ‘rephrased’ from 2015-16 and 2016-17:
• 2013-14 budget increased by $360 million
• 2014-15 budget increased by $304 million
• 2015-16 budget decreased by -$89 million
• 2016-17 budget decreased by -$1 billion
• extra $1.8 billion over four years for forex
Net Cost (Cash)
Budget
Estimate
Revised
Estimate Difference
Employee payments 10,727,745 10,701,344 -26,401
Supplier payments 9,305,856 9,689,400 383,544
Purchase of Specialist Military Equipment 3,179,327 3,853,037 673,710
Purchase of inventory 1,054,362 1,069,603 15,241
Purchase of land property, plant and equipment 1,492,844 1,595,427 102,583
Other cash used 1,515,708 1,595,994 80,286
Own Source Receipts -1,940,798 -2,166,230 -225,432
Net Cost 25,335,044 26,338,575 1,003,531
Late breaking news:
• $1.1 billion has been ‘rephrased’ from 2015-16 and 2016-17:
• 2013-14 budget increased by $360 million
• 2014-15 budget increased by $304 million
• 2015-16 budget decreased by -$89 million
• 2016-17 budget decreased by -$1 billion
Total -$425 million
• extra $1.8 billion over four years for forex
Within a decade, the budget surplus will be 1 per cent of GDP,
defence spending will be 2 per cent of GDP, the private health
insurance rebate will be fully restored, and each year,
government will be a smaller percentage of our economy.
Fiscal problems represent political
rather than economic constraints
on the government’s freedom of action.
Nonetheless…
Fiscal problems represent political
rather than economic constraints
on the government’s freedom of action.
There is no fundamental economic reason why Australia
cannot afford to maintain a defence force of the size
and shape it has today out to at least 2050, or build a larger
force if need be.
It’s just a question of accepting the opportunity cost in:
• public goods (health, education, welfare)
• private consumption (plasma TVs, holidays, cars)
…the Government is committed to
increasing Defence funding towards a
target of 2 per cent of GDP.
1.6% GDP (2012-13)
…the Government is committed to
increasing Defence funding towards a
target of 2 per cent of GDP.
1.6% GDP (2012-13)
Funding only adequate for
1.65% GDP in 2022