Defence appropriations increase slightly with large share of the budget allocated to materiel readiness
The draft budget of the administrative branch of the Ministry of Defence is EUR 3.16 billion for 2020, which is about EUR 24 million or 0.8 per cent higher than the 2019 budget. The administrative branch accounts for 1.26 per cent (1.30 per cent in 2019) of the anticipated GDP in 2020.
Operating costs of the Defence Forces remain nearly unchanged
Review of salaries and other costs increase expenditure in the administrative branch by EUR 33 million. On the basis of the Government programme, an increase of EUR 10 million is proposed for the Defence Forces’ operating expenditure appropriations; of these, EUR 7 million is allocated to establishing a hundred new jobs. It is also proposed that both reservist training and voluntary national defence training receive an increase of EUR 1.5 million.
Considerable share of the budget allocated to materiel readiness
A considerable share, about EUR 1.17 billion or 43 per cent, of the national defence appropriations (without value-added tax expenditure) will be used on materiel readiness. This includes procurement of defence materiel, equipping of troops by means of operating cost funding and materiel maintenance costs.
Separate appropriation to prepare for procurement of multi-role fighters
An appropriation of EUR 20 million is proposed for the preparatory process preceding the procurement of multi-role fighters. It is also proposed that the amount be transferred to budget year 2020 from the spending limits reserve of the HX programme for 2021.
Defence Forces receive two new authorisation orders
An authorisation order of EUR 54 million is proposed for the procurement of defence materiel; this expenditure is scheduled for 2020-2022. The authorisation order will be used among other things for upgrading armoured wheeled vehicles and procuring engineer materiel as well as explosive and battle effects simulation systems to be used in training. Additionally, it is proposed that an authorisation order of approximately EUR 132 million be added to the operating costs of the Defence Forces for 2020-2024 for procuring spare parts and concluding service and maintenance agreements for systems.
Increased support to voluntary national defence
In line with the Government Programme, sufficient resources for national defence organisations will be secured and the Act on Voluntary National Defence will be implemented.
The National Defence Training Association will receive an increase of EUR 2.8 million in state subsidy for 2020 through appropriation transfers within the defence administration. Also in line with the Government Programme, the Defence Forces' operating costs will be increased by EUR 1.5 million.
Military crisis management will focus on Lebanon, Iraq and Afghanistan
A total of EUR 60 million is proposed for equipment and administrative expenses in military crisis management. The maintenance expenses of Finnish crisis management troops (EUR 53 million) are included in the appropriations of the Ministry for Foreign Affairs. It is estimated that the overall strength of crisis management troops will be at the most 500 person-years.
Inquiries:Kristiina Olsson, Director of Finance, Ministry of Defence, tel. +358 295 140 220