Singapore to Increase the Defense Budget in the 2016-2017 Fiscal Year by 6.4%

01 April 2016

SAF army (photo : mediacorp)

TSAMTO 31 March. According to information published by the Ministry of Finance of Singapore, the country's defense budget for fiscal year 2016-2017 (Begins on April 1) will be 13.97 billion. SGD. USD. ($ 10.2 bln. dollars).

Thus, defense spending will increase by 6.4% compared to the budget for the 2015-2016 fiscal year This is the largest increase in defense spending since 2011. On average over the past five years, the growth was 3.5% per year.

In addition, according to "Jane difenz Industry", the second consecutive year, the share of defense spending in relation to GDP. It will amount to 3.4% of GDP. Earlier in the period from 2009-2010 to 2014-2015 fiscal year the share of defense spending in relation to GDP has gradually decreased.

The defense budget will be about 19% of public expenditure.

The growth of the defense budget to a level of 3.4% of GDP corresponds to a long-term strategy in Singapore at a gradual increase in defense expenditure. Singapore's defense budget increases every year since FY2006, when it stood at 9.63 billion. SGD. dollars. Despite the fact that the share of defense spending in relation to gross domestic product exceeds the world average of 2%, it still remains well below the authorized limit of the Singapore government in 6%.

It is estimated that in the Asia-Pacific region, the rise of defense by an average of 4-6% of expenditure in the year. After the global financial crisis during the period 2009-2014. growth slowed down (to 2.5%), but now the situation is changing in the direction of increasing growth.

The growth of the defense budget should also provide the opportunity to finance the purchase of modern weapons for the Armed Forces of Singapore. Among the planned acquisitions should be called the replacement of obsolete designs multipurpose helicopters AS-332M «Super Puma" armored vehicles and V-200 with the wheel formula 4x4. Also, the "Fokker 50" require replacement aircraft C-130 BTA "Hercules" and maritime patrol aircraft. In addition, the possibility of buying the F-35 fighter "Lightning 2".

Currently being implemented acquisition program NNS "Type-218SG», as well as the coastal patrol ships LMV zone (Littoral Mission Vessel) National Company "the ST Marin» (ST Marin), multi-role tanker transports-A-330 MRTT and modernization of fighters F- 16C / D Blok.52.

(Armstrade)