RESOURCES
In the decade preceding 2001-02, Defence funding remained relatively stable in 'real' terms. Increases over this period, evident in graph 4.3, reflect maintenance of the Defence funding base after taking account of inflationary and foreign exchange influences.
Defence funding was increased in the 2001-02 budget and forward estimates to address a number of specific priorities detailed in the Defence White Paper 2000. The White Paper provided a funding commitment for Defence of around $28.9 billion (b) in 2005-06 dollars, over the decade from 2001-02. This funding injection equates to an increase of some 3% of average real growth per year over the period.
In addition to the implementation of the White Paper, the Australian Government has given Defence a number of specific directions to meet emerging strategic priorities. Key 2005-06 budget measures include:
- supplementation of $448 million (m) for the conduct of ADF operations including:
- the continued ADF contribution to stabilisation and reconstruction activities in Iraq (an additional $205.3m over two years)
- the ADF deployments to the Al Muthanna Province ($215.2m over three years)
- continued border protection operations ($16.4m)
- the ADF contribution to the Australian Government effort to provide assistance to people affected by the December 2004 tsunami disaster ($11.1m)
- funding for enhancements to Australia’s security including for enhanced protective security and North-West Shelf surveillance ($192m over four years)
- supplementation for Defence’s contribution to Australia’s hosting of the Asia Pacific Economic Cooperation (APEC) forum in 2007 ($19.7m).
Graph 4.4 reflects the significance of both employee costs and the investment in specialist military equipment and infrastructure in delivering Defence capability. The increased share for investment is consistent with progress towards acquiring the equipment capabilities outlined in the Defence White Paper. Longer-term projections indicate increases in personnel costs due to growth towards a larger ADF as specified in the White Paper.
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