Department of Defence 2004/05 Medium Term Expenditure Framework

11

Department of Defence

2004/05 Medium Term Expenditure Framework

Department of Defence

2004/05 Medium Term Expenditure Framework

22

SCOPESCOPE

AimAim

Expenditure HistoryExpenditure History

Defence ChallengesDefence Challenges

Policy & Budget PrioritiesPolicy & Budget Priorities

Budget SubmissionBudget Submission

Policy OptionsPolicy Options

Conclusion & DiscussionConclusion & Discussion

33

AIMAIM

To present the Department of Defence’s

Estimate of Expenditure for the 2004/05 MTEF

period to the Joint Standing Committee of

Parliament on Defence.

To present the Department of Defence’s

Estimate of Expenditure for the 2004/05 MTEF

period to the Joint Standing Committee of

Parliament on Defence.

44

Expenditure HistoryExpenditure History

ItemItemFinancial Year (R'000)Financial Year (R'000)

2000/012000/01 2001/022001/02 2002/032002/03

Defence VoteDefence Vote13,909,8413,909,84

3316,052,9516,052,95

0018,844,7318,844,73

44

Defence Defence ExpenditureExpenditure

13,900,1613,900,1666

16,044,6416,044,6477

18,835,8018,835,8011

Amount Amount SurrenderedSurrendered 9,6779,677 8,3038,303 8,9338,933

Percentage of Percentage of VoteVote 0.07%0.07% 0.05%0.05% 0.05%0.05%

55

Defence ChallengesDefence ChallengesDefence ChallengesDefence Challenges Affordable & SustainableAffordable & Sustainable Health & Age ProfileHealth & Age Profile Personnel RetentionPersonnel Retention Reserve ForcesReserve Forces Main Equipment ObsolescenceMain Equipment Obsolescence Infrastructure & FacilitiesInfrastructure & Facilities NEPAD SupportNEPAD Support Combat Readiness LevelsCombat Readiness Levels CriminalityCriminality Information SystemsInformation Systems Exchange & Inflation RatesExchange & Inflation Rates

66

Defence

Defence

Policy &

Policy &

Budget

Budget

Prioriti

es

Prioriti

es

77

Defence Support for Defence Support for Government’s Diplomatic Government’s Diplomatic Initiatives in AfricaInitiatives in Africa

Defence Support for Defence Support for Government’s Diplomatic Government’s Diplomatic Initiatives in AfricaInitiatives in Africa African Union StructuresAfrican Union Structures Common Africa Defence & Security Common Africa Defence & Security

PolicyPolicy SADC Security ManagementSADC Security Management High Profile NEPAD ProgrammesHigh Profile NEPAD Programmes

Sharing Experiences such as Sharing Experiences such as Disarmament, Demobilization etcDisarmament, Demobilization etc

Donating Excess EquipmentDonating Excess Equipment Sharing Learning OpportunitiesSharing Learning Opportunities Opening Military Attaché OfficesOpening Military Attaché Offices

88

Defence Support to Regional Defence Support to Regional SecuritySecurityDefence Support to Regional Defence Support to Regional SecuritySecurity

Potential deployments wrt Post Conflict Reconstruction

Commitment to OP MONUC II, Phase III in the DRC

Commitment to the establishment of an Africa Mission in Burundi

Emergent commitment for the establishment of an African Standby Force

99

Restoration of Defence Restoration of Defence CapabilitiesCapabilitiesRestoration of Defence Restoration of Defence CapabilitiesCapabilities

Renewal of HR CompositionRenewal of HR Composition Deployable Combat Readiness Deployable Combat Readiness LevelsLevels Rebuilding Mobilization ReservesRebuilding Mobilization Reserves Disposal of Surplus Stores & EquipmentDisposal of Surplus Stores & Equipment New Information Technology SystemsNew Information Technology Systems M&R of Defence Facilities & M&R of Defence Facilities &

InfrastructureInfrastructure

1010

Def

ence

Budget

Defen

ce B

udget

Submis

sion

Submis

sion

Def

ence

Budget

Defen

ce B

udget

Submis

sion

Submis

sion

1111

DOD MTEFDOD MTEF ALLOCATION: ALLOCATION: 2004/05 TO 2006/07 2004/05 TO 2006/07

(Nominal Terms)(Nominal Terms)

DOD MTEFDOD MTEF ALLOCATION: ALLOCATION: 2004/05 TO 2006/07 2004/05 TO 2006/07

(Nominal Terms)(Nominal Terms)

2004/05 2005/06 2006/07

R'000 R'000 R'000

20,257,326 22,123,617 22,360,684

1212

Defence Allocation per Main Programme: 2004/2005Defence Allocation per Main Programme: 2004/2005DoD Budget: R20 257 millionDoD Budget: R20 257 million

Joint SupportJoint Support2 303 million2 303 million(11,37%)(11,37%)

Military Health SupportMilitary Health Support1 306 million1 306 million (6,44%) (6,44%)

Maritime Defence Maritime Defence 1 093 million 1 093 million (5,39%)(5,39%)

Air Defence Air Defence 2 222 million 2 222 million (10,97%)(10,97%)

Landward DefenceLandward Defence3 326 million3 326 million(16,42%)(16,42%)

AdministrationAdministration720 million720 million(3,55%)(3,55%)

Special Defence AccountSpecial Defence Account8 368 million8 368 million(39,11%)(39,11%)

Command & ControlCommand & Control1 019 million1 019 million(6,02%)(6,02%)

Defence IntelligenceDefence Intelligence146 million146 million(0,72%)(0,72%)

1313

Allocation per Sub-Programme: Administration R720mAllocation per Sub-Programme: Administration R720m

Defence Foreign LiaisonDefence Foreign LiaisonR 49,4 million (6,9%)R 49,4 million (6,9%)

Political DirectionPolitical DirectionR 13,5 million (1,9%)R 13,5 million (1,9%)

Policy and PlanningPolicy and PlanningR 49,9 million (6,9%)R 49,9 million (6,9%)

Departmental DirectionDepartmental DirectionR 5,5 million (0,8%)R 5,5 million (0,8%)

HR Support ServicesHR Support ServicesR 256,9 million (35,7%)R 256,9 million (35,7%)

Inspection Services Inspection Services R 37,1 million (5,1%)R 37,1 million (5,1%)

Legal Services Legal Services R 65,5 million (9,1%)R 65,5 million (9,1%)

Religious ServicesReligious ServicesR 4,2 million (0.6%)R 4,2 million (0.6%)

SANDF Command and ControlSANDF Command and ControlR 6,3 million (0,9%)R 6,3 million (0,9%)

Financial Services Financial Services R 170,6 million (23,7%)R 170,6 million (23,7%)

Acquisition ServicesAcquisition ServicesR 31,0 millionR 31,0 million(4,3%)(4,3%)

Corporate CommunicationsCorporate CommunicationsR 20,3 millionR 20,3 million(2,8%)(2,8%)

Reserve ComponentReserve ComponentR 9,5 millionR 9,5 million(1,3%)(1,3%)

1414

CHANGESCHANGES

Inspection Services increased by 40 per Inspection Services increased by 40 per cent from 2003/04 to 2004/05 due to the cent from 2003/04 to 2004/05 due to the establishment of the Anti-Fraud Directorate establishment of the Anti-Fraud Directorate and extra funding allocated for Crime and extra funding allocated for Crime Prevention. Prevention.

1515

Allocation per Sub-Programme: Landward Defence (R3 Allocation per Sub-Programme: Landward Defence (R3 326m)326m)

Strategic Direction Strategic Direction R 180,4 million R 180,4 million (5,4%)(5,4%)

Infantry CapabilityInfantry CapabilityR 1 454,6 millionR 1 454,6 million(43,7%)(43,7%)

Armour CapabilityArmour CapabilityR 124,3 millionR 124,3 million(3,7%)(3,7%)

Artillery CapabilityArtillery CapabilityR102,9 millionR102,9 million(3,1%)(3,1%)

Engineering CapabilityEngineering CapabilityR 178,5 millionR 178,5 million(5,4%)(5,4%)

Air Defence Artilery CapabilityAir Defence Artilery CapabilityR 82,3 millionR 82,3 million(2,5%)(2,5%)

General Training CapabilityGeneral Training CapabilityR 149,6 millionR 149,6 million(4,5%)(4,5%)

1616

CHANGESCHANGESThe 8,7 per cent, 10,4 per cent and 14,6 per cent increase in the The 8,7 per cent, 10,4 per cent and 14,6 per cent increase in the Infantry, Armour and Air Defence Artillery capabilities respectively, is Infantry, Armour and Air Defence Artillery capabilities respectively, is mainly due to the multi-role force design training as to be able to mainly due to the multi-role force design training as to be able to additionally undertake force employment duties in support of internal additionally undertake force employment duties in support of internal operations (support to the SAPS). This is necessitated because of the operations (support to the SAPS). This is necessitated because of the Infantry capability that is deployed in Central Africa. Infantry capability that is deployed in Central Africa.

The 9,8 per cent increase in the Artillery capability is mainly due to the The 9,8 per cent increase in the Artillery capability is mainly due to the commissioning of the Artillery Targeting Acquisitioning System (GBAT)commissioning of the Artillery Targeting Acquisitioning System (GBAT)

The deployments in the DRC and Burundi also causes the Operational The deployments in the DRC and Burundi also causes the Operational Intelligence subprogramme to increase by 9,7 per cent.Intelligence subprogramme to increase by 9,7 per cent.

The Strategic Direction subprogramme decreases by 10,6 per cent due The Strategic Direction subprogramme decreases by 10,6 per cent due to the distribution of funds to other capabilities in order to sustain to the distribution of funds to other capabilities in order to sustain ongoing internal deployments.ongoing internal deployments.

1717

Allocation per Sub-Programme: Allocation per Sub-Programme: Air Defence (R2 222m)Air Defence (R2 222m)

Command Post Command Post R 34,0 million (1,5%)R 34,0 million (1,5%)

Strategic DirectionStrategic DirectionR 5,8 million (0,3%)R 5,8 million (0,3%)

Operational DirectionOperational DirectionR 27,6 million (1,2%)R 27,6 million (1,2%)

Helicopter CapabilityHelicopter CapabilityR 268,2 million (12,1%)R 268,2 million (12,1%)

Air Combat and Recce CapabilityAir Combat and Recce CapabilityR 196,8 million (8,9%)R 196,8 million (8,9%)

Transport and Maritime CapabilityTransport and Maritime CapabilityR 205,1 million (9,2%)R 205,1 million (9,2%)

Command and Control CapabilityCommand and Control CapabilityR 144,4 million (6,5%)R 144,4 million (6,5%)

Base Support CapabilityBase Support CapabilityR 521,6 million (23,5%)R 521,6 million (23,5%)

Training CapabilityTraining CapabilityR 226,6 million (10,2%)R 226,6 million (10,2%)

Technical Support ServicesTechnical Support ServicesR 489,2 million (22,0%)R 489,2 million (22,0%)

Ops Support and Int CapabilityOps Support and Int CapabilityR 103,0 million (4,6%) R 103,0 million (4,6%)

1818

CHANGESCHANGES

The decrease of 62,3 per cent in the Operational Direction is mainly The decrease of 62,3 per cent in the Operational Direction is mainly due to the distribution of funds for the incentive scheme to all relevant due to the distribution of funds for the incentive scheme to all relevant subprogrammes.subprogrammes.

The 57,1 decrease in the Command Post subprogramme is attributed The 57,1 decrease in the Command Post subprogramme is attributed to the closing down of the forward Air Command Posts (FACP) as well to the closing down of the forward Air Command Posts (FACP) as well as the closing down of the Air Operations Teams (AOT). These as the closing down of the Air Operations Teams (AOT). These personnel will be incorporated under the Base Support capability, personnel will be incorporated under the Base Support capability, hence the increase of 22,8 per cent increase in this subprogramme.hence the increase of 22,8 per cent increase in this subprogramme.

The increase of 61,7 per cent in the Strategic Direction subprogramme The increase of 61,7 per cent in the Strategic Direction subprogramme is mainly due to the relocation of the Defence Research Centre is mainly due to the relocation of the Defence Research Centre contract of Rm 2 from the Air Combat subprogramme.contract of Rm 2 from the Air Combat subprogramme.

1919

Allocation per Sub-Programme: Allocation per Sub-Programme: Maritime Defence (R1 093 million)Maritime Defence (R1 093 million)

Maritime Direction CapabilityMaritime Direction CapabilityR 220,9 millionR 220,9 million(20,2%)(20,2%)

Maritime Logistic Support CapabilityMaritime Logistic Support CapabilityR 167,9 millionR 167,9 million(15,4%)(15,4%)

Base Support CapabilityBase Support CapabilityR 282,6 millionR 282,6 million(25,9%)(25,9%)

Maritime Training CapabilityMaritime Training CapabilityR 140,7 millionR 140,7 million(12,9%)(12,9%)

Maritime Combat CapabilityMaritime Combat Capability R 280,5 millionR 280,5 million (25,7%)(25,7%)

2020

CHANGESCHANGESThe immediate focus of the Navy is to allocate resources to The immediate focus of the Navy is to allocate resources to the operating budget in preparing for the acceptance of the the operating budget in preparing for the acceptance of the 3 Patrol Corvettes. This is evident in the 15 per cent 3 Patrol Corvettes. This is evident in the 15 per cent increase in the Maritime Combat capability subprogramme increase in the Maritime Combat capability subprogramme over the medium term.over the medium term.

The decrease of 17 per cent in the Maritime Logistic The decrease of 17 per cent in the Maritime Logistic Support capability subprogramme is attributed mainly to Support capability subprogramme is attributed mainly to the realignment of the personnel allocation due to the the realignment of the personnel allocation due to the closing down of Fleet Maintenance Unit (Durban) and closing down of Fleet Maintenance Unit (Durban) and Naval Armament Depot (Durban). Naval Armament Depot (Durban).

The Maritime Training capability subprogramme increase The Maritime Training capability subprogramme increase of 15,8 per cent is mainly attributed to the incorporation of of 15,8 per cent is mainly attributed to the incorporation of the maritime reserve units into this capability (Rm 10).the maritime reserve units into this capability (Rm 10).

2121

Allocation per Sub-Programme: Allocation per Sub-Programme: Military Health Support (R1 306 million) Military Health Support (R1 306 million)

Military Health TrainingMilitary Health TrainingR 99,2 millionR 99,2 million(7.6%)(7.6%)

Strategic DirectionStrategic DirectionR 90,4 millionR 90,4 million(6,9%)(6,9%)

Military Health SupportMilitary Health SupportR 43,8 millionR 43,8 million(3,4%)(3,4%)

Area Mil Health ServicesArea Mil Health ServicesR 442,5 millionR 442,5 million(33,9%)(33,9%)

Specialist Health ServicesSpecialist Health ServicesR 523,03 millionR 523,03 million(40,1%)(40,1%)

Product Support CapabilityProduct Support CapabilityR 49,3 millionR 49,3 million(3,8%)(3,8%)

Base Support CapabilityBase Support CapabilityR 57,4 millionR 57,4 million(4,4%)(4,4%)

2222

CHANGESCHANGESThe average increase of 42,8 per cent per year over the medium term The average increase of 42,8 per cent per year over the medium term in the Product Support capability is due to the upkeep of medical stock in the Product Support capability is due to the upkeep of medical stock and equipment at medical depots, which is mainly utilised for and equipment at medical depots, which is mainly utilised for deployment purposes.deployment purposes.

The increase of 173,2 per cent in the Base Support Capability id due to The increase of 173,2 per cent in the Base Support Capability id due to the establishment of the General Support Base Thaba Tshwane North. the establishment of the General Support Base Thaba Tshwane North. This causes the decrease of 14,4 per cent in the Strategic Direction This causes the decrease of 14,4 per cent in the Strategic Direction subprogramme, because the base was previously provide for in this subprogramme, because the base was previously provide for in this subprogramme.subprogramme.

The increase in the Military Health Training subprogramme of 24,9 per The increase in the Military Health Training subprogramme of 24,9 per cent is due to the renewal drive to train support personnel within the cent is due to the renewal drive to train support personnel within the SAMHS to be able to provide an acceptable level of medical service.SAMHS to be able to provide an acceptable level of medical service.

2323

Allocation per Sub-Programme: Allocation per Sub-Programme: Defence Intelligence (R146 million)Defence Intelligence (R146 million)

Defence Intelligence Support Defence Intelligence Support R 134,2 million R 134,2 million (92,0%)(92,0%)


OperationsOperationsR 11,5 millionR 11,5 million(7,89%)(7,89%)

2424

CHANGESCHANGES

The decrease of 94,7 per cent (Rm 2,7) in the Strategic Direction The decrease of 94,7 per cent (Rm 2,7) in the Strategic Direction subprogramme is mainly due to the fact that all foreign related visits subprogramme is mainly due to the fact that all foreign related visits are incorporated under the Special Defence Account.are incorporated under the Special Defence Account.

The decrease of 41,5 per cent the Operations subprogramme is The decrease of 41,5 per cent the Operations subprogramme is attributed to the fact that Defence Intelligence relocated all sensitive attributed to the fact that Defence Intelligence relocated all sensitive activities as well as foreign visits to the Special Defence Account.activities as well as foreign visits to the Special Defence Account.

The increase of 8,8 per cent in the Defence Intelligence Support The increase of 8,8 per cent in the Defence Intelligence Support Services subprogramme is mainly due to the increased effort by Services subprogramme is mainly due to the increased effort by Defence Intelligence to upgrade the South African Intelligence College Defence Intelligence to upgrade the South African Intelligence College (SADIC) and the satellite training facility at Fontana as well as the (SADIC) and the satellite training facility at Fontana as well as the upgrade of the highly deteriorated HQ facility.upgrade of the highly deteriorated HQ facility.

2525

Allocation per Sub-Programme: Allocation per Sub-Programme: Defence Intelligence (R146 million)Defence Intelligence (R146 million)


Joint Logistic ServicesJoint Logistic ServicesR 622,1 millionR 622,1 million(27,06%)(27,06%)

CMI ServiceCMI ServiceR 816,4 millionR 816,4 million(35,44%)(35,44%)

Military PolicingMilitary PolicingR 213,3 millionR 213,3 million(9,26%)(9,26%)

Service CorpsService CorpsR 49,7 millionR 49,7 million(2,16%)(2,16%)

Acquisition ServicesAcquisition ServicesR 2,5 millionR 2,5 million(0,11%)(0,11%)

Joint TrainingJoint TrainingR 101,1 millionR 101,1 million(4,33%)(4,33%)

Departmental SupportDepartmental SupportR 348,7 million (21,42%)R 348,7 million (21,42%)

AssistanceAssistanceR 0,35 million (0,02%)R 0,35 million (0,02%)

2626

CHANGESCHANGES

The decrease in the Joint Support Management The decrease in the Joint Support Management subprogramme of 21,4 per cent is mainly due to the subprogramme of 21,4 per cent is mainly due to the reallocation of activities to the Joint Logistic Services reallocation of activities to the Joint Logistic Services subprogramme.subprogramme.

The final payment for the relocation of the San community The final payment for the relocation of the San community from Schmidtsfrift to Platfontein of Rm 3,6 was done in from Schmidtsfrift to Platfontein of Rm 3,6 was done in 2003/04. This is evident in the decrease of 91,1 per cent in 2003/04. This is evident in the decrease of 91,1 per cent in the Assistance subprogramme.the Assistance subprogramme.

2727

Allocation per Sub-Programme:Allocation per Sub-Programme: Command & Control (R1 219 million) Command & Control (R1 219 million)

Peace Missions in AfricaPeace Missions in AfricaR500,0 millionR500,0 million(57,43%)(57,43%)

Operational Command and Control Operational Command and Control R 108,3 million R 108,3 million (8,89%)(8,89%)

Special OperationsSpecial OperationsR 135,4 millionR 135,4 million(11,11%)(11,11%)

Conventional OperationsConventional OperationsR 275,2 million R 275,2 million (22,58%)(22,58%)

2828

Allocation per Sub-Programme:Allocation per Sub-Programme: SDA (R7 924 million) SDA (R7 924 million)

Procurement ServicesProcurement ServicesR 1 835,2 million R 1 835,2 million (23,16%)(23,16%)

Strategic Defence ProcurementStrategic Defence ProcurementR 5 501,9 millionR 5 501,9 million(69,44%)(69,44%)

Intelligence RelatedIntelligence RelatedR 65,4 millionR 65,4 million(0,83%)(0,83%)

OperatingOperatingR 521,1 million R 521,1 million (6,58%)(6,58%)

2929

CHANGESCHANGES

Procurement Services subprogramme increase by 24.4 per cent, and Procurement Services subprogramme increase by 24.4 per cent, and this can be attributed to the following:this can be attributed to the following:

-- Additional allocation of Rm 143 for Additional allocation of Rm 143 for the Combat Support Helicopters.the Combat Support Helicopters.

-- Additional allocation of Rm 70 for the upgrade Additional allocation of Rm 70 for the upgrade of Casspir armoured personnel carriers.of Casspir armoured personnel carriers.

-- Additional allocation of Rm 170 for the new Additional allocation of Rm 170 for the new portable ground to air missiles.portable ground to air missiles.

The increase of 29,2 per cent in the Intelligence Related The increase of 29,2 per cent in the Intelligence Related subprogramme is mainly due to the fact that Defence Intelligence will subprogramme is mainly due to the fact that Defence Intelligence will conduct all foreign related visits and certain sensitive activities under conduct all foreign related visits and certain sensitive activities under the Special Defence Account.the Special Defence Account.

3030

Allocation per Main Item:Allocation per Main Item: DoD Budget (20 257 million) DoD Budget (20 257 million)

Compensation of EmployeesCompensation of EmployeesR 7 770 millionR 7 770 million(38,36%)(38,36%)

Payments for Capital Assets (Buildings)Payments for Capital Assets (Buildings)R 67 millionR 67 million(0,33%)(0,33%)

Goods and ServicesGoods and ServicesR 4 188 millionR 4 188 million(20,67%)(20,67%)

Transfer PaymentsTransfer PaymentsR 8 233 millionR 8 233 million(40,64%) (40,64%)

3131

Allocation per Cost Category Including Strategic Defence Allocation per Cost Category Including Strategic Defence Packages:Packages:

DoD Budget (R20 257 million) DoD Budget (R20 257 million)

Personnel ExpenditurePersonnel ExpenditureR 7 770 millionR 7 770 million(38,36)(38,36)

Armament AcquisitionArmament AcquisitionR 2 422 millionR 2 422 million(16,41%)(16,41%)

Operating ExpenditureOperating ExpenditureR 4 497 millionR 4 497 million(30,47%)(30,47%)

Capital ExpenditureCapital ExpenditureR 67 millionR 67 million(0,45%)(0,45%)

3232

Allocation per Cost Category Excluding Strategic Allocation per Cost Category Excluding Strategic Defence Packages:Defence Packages:

DoD Budget (R14 755 million) DoD Budget (R14 755 million)

Personnel ExpenditurePersonnel ExpenditureR 7 770 millionR 7 770 million(52,66%)(52,66%)

Operating ExpenditureOperating ExpenditureR 4 497 millionR 4 497 million(30,47%)(30,47%)

Capital ExpenditureCapital ExpenditureR 67 millionR 67 million(0,45%)(0,45%)

Armament AcquisitionArmament AcquisitionR 2 422 millionR 2 422 million(16,41%)(16,41%)

3333

3000

3500

4000

4500

5000

5500

94 95 96 97 98 99 00 01 02 03 04 05 06

Operating FundsOperating Funds

3434

Defence Policy

Options

Defence Policy

Options

3535

Options Recommended by the National Treasury

Options Recommended by the National Treasury

Program & Policy optionDEPT BE DEPT BE DEPT BE

1. Peace SupportDRC 315,549 125,000 322,325 129,000 328,825 132,000 Burundi 564,378 373,000 577,044 385,000 599,953 394,000 Medical Consumables 37,950 - 40,040 - 42,040 - Obsolete main medical equipment 43,500 - - - - - Medical mobilisation unit 18,220 - 10,550 - 11,080 - Medical task team 15,000 - 15,830 - 16,620 - Airbase infrastructure 37,500 - - - - - Special Forces brigade 8,190 - 5,130 - - - Sub-total 1,040,287 498,000 970,919 514,000 998,518 526,000 2. Military skills development 260,400 - 596,500 - 768,800 - 3. Helicopter systemsMaritime 03/04 projection 391989* 413733* 438,557 Maritime 04/05 projection 260,291 -131,698 216,949 -196,784 448,402 9,845 Maritime Operate - - - - 15,000 - Rooivalk 301,000 301,000 313,000 313,000 268,000 268,000 Rooivalk Operate 78,000 - 85,000 - 92,000 - Sub-total 379,000 301,000 398,000 313,000 375,000 277,845 4. Diplomatic initiativeAttaché offices 33,890 - 19,910 - 22,290 - Presidential aircraft, operate 11,000 - 23,210 - 24,370 - VVIP hospital ward 10,000 - 3,500 - 3,680 - Sub-total 54,890 - 46,620 - 50,340 - General capacity - - 1,000,000 Total excl SDP 1,734,577 799,999 2,012,039 827,000 2,192,658 1,803,845 SDP 03/04 projection 5,620,744 6,696,685 4,608,293 SDP 04/05 projection 5,342,103 6,045,815 4,018,711 Deficit/savings -278,641 -651,870 -589,582

2004/05 (RM) 2005/06 (RM) 2006/07 (RM)

300000300000 300000300000 300000300000

200000200000 200000200000 200000200000

300000300000

3636

Changes in the DOD’s allocation Changes in the DOD’s allocation since the previous presentationsince the previous presentation

2004/05 (RM)

Peace Support Operations 500

Maritime Helicopter 04/05 projection -129

Treasury's contribution to SDPs 03/04 projection 5,620Treasury's contribution to SDPs 04/05 projection 4,788Deficit/Savings -832

DOD's contribution to SDPs 03/04 projection 944DOD's contribution to SDPs 04/05 projection 715Deficit/Savings -229

Reduction in Defence's contribution to SDPs 229

Helicopter Systems (Rooivalk) 200

Netto change in allocation -261

Distribution of RM 229 - Normal Armament Acquisition 75 - 1800 MHz Bandwidth Migration 10 - Information Technology 100 - Medical Consumables 44

229

3737

ConclusionConclusion

Defence requires a stable Medium Term

Expenditure Allocation to:

Finance its ordered commitments

Rebuild capacity

Renew IT systems

Department of Defence 2004/05 Medium Term Expenditure Framework

Documents