Defence Update

Defence Budget Cuts Dig Deeper

The delayed 1987-88 Federal Budget brought down on September 15 implements the 4% reduction (to a minus 1% real growth) of $350 million in Defence spending as foreshadowed by the Treasurer, Mr Paul Keating in the May mini-Budget. The Budget provides for total defence expenditure of $7. 4 billion (9. 4% of total Federal outlays), which is not quite $200 million higher than the actual 1986-87 spending.

The Defence Minister, Mr Kim Beazley, naturally tried to put the best possible light on the confirmed financial provisions which mean a real cut of 918 (Army down 730) in the permanent forces of the Navy, Army and Air Force, although a new Personnel Resource Strategy which produces an average strength over a year implies otherwise. The confusing picture is that under this average strength system figuring the total strengths of the regular forces is estimated to rise by 312 in 1987- 88 to 70,015.

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