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DEFENCE BUDGET PRIORITIES IN 2016


The priorities of the defence budget for 2016 take into account the new requirements of the national defence and participation in collective defence as derived from the allied policy of adapting to the new security environment that has an impact on Romania. 

The proposed defence budget for 2016 represents 1.50 percent of the GDP of 2016 plus other expenditures that will reach 1.70 percent of the GDP.

As the 2015 budget would be 1.5 percent of the 2015 GDP, the next year’s budget is an intermediate realistic level that would allow:
- to continue the rising trend registered since the beginning of 2013, when the decrease of the defence budget was stopped;
- to accelerate carrying out major procurement programs;
- to make credible the increase to 2 percent of the GDP from 2017 on, according to the National Political Agreement on the increase of defence financing.

The budgetary priorities of the Ministry of National Defence follow the guidelines of the Program concerning the transformation, development and procurement of the Romanian Armed Forces by 2027 and further, taking into account mainly improving training level, procurement, readiness and continue participating in international missions. 

TRAINING
Improving the training level of the Romanian troops is one of the main priorities taken into account in the process of planning financial defence resources. As of 2014, the number of bilateral or multinational training exercises conducted in Romania increased with over 25 percent. In 2015 over 400 major exercises were conducted, of which 112 were bilateral and multinational.

Again, as of 2014, as a measure of the Readiness Action Plan of the Alliance, Romania included a significant number of multinational exercises in NATO program of exercises, some of which are linked to similar exercises conducted in other countries. 

The financial allottments forecast for 2016 will allow keeping the increase rhythm in the field concerning the complexity and number of participants in the exercise. 

PROCUREMENT
By allotting 28.8 percent of the defence budget for procurement, in 2016, Romania will observe NATO recommendations concerning procurement expenditures.

The budget proposed for 2016, will allow financing the major ongoing programs (mainly the Multirole Aircraft Program), initiating some critical procurement programs to achieve the assumend capabilities, such as:
- fixed and deployable communications and information systems for the Multinational Division Command South-East;
- modernizing frigates T-22 R – stage 2 (full operational capacity) and other Navy equipment;
- procuring/modernizing armored combat vehicles;
- multifunctional transport platforms;
- aircraft capital repairs.
The proposed budget will allow co-financing investment projects conducted through NATO Security Investment Program, including the implementation of projects ensuring conditions for pre-positioning NATO equipment on Romanian territory.

MILITARY EQUIPMENT
Participating in training missions and exercises demands, beside the necessary fuel, maintaining the necessary readiness of the military equipment. The 2016 budget brings the necessary funds for the maintenance of such equipment. The readiness of the structures available for NATO, in permanent combat service and for rapid reaction is a priority whether they participate or not in the planned exercises.

PARTICIPATION IN INTERNATIONAL MISSIONS
Next year’s budget takes into account the financial support of participation in military missions and operations abroad. The amount allotted will increase from 138.2 Mil. Lei in 2015 to 143.4 Mil. Lei in 2016, thus totally ensuring the expenditures in agreement with CSAT approval, mainly for NATO mission in Afghanistan, Resolute Support. 
The 2016 budget will allow covering the salary increase entirely, as established in 2015, as well as the expenditure represented by military pensions, while maintaining the priority of increasing the operational and procurement capacity with modern equipment. 

MoND Press Office

 

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Actualizare: 03.12.2016