Australian Defence Budget on Track to Meet 2% GDP Target

Australia’s defence spending for fiscal year (FY) 2018/19 will rise by AUD1.2 billion (USD900 million) or 1.4% to AUD36.4 billion, the government announced in its annual budget statement on 8 May. Expenditure as a share of gross domestic product (GDP) will reach 1.9%: broadly in line with the government’s target of defence funding reaching 2% of...

Australia’s defence spending for fiscal year (FY) 2018/19 will rise by AUD1.2 billion (USD900 million) or 1.4% to AUD36.4 billion, the government announced in its annual budget statement on 8 May.

Expenditure as a share of gross domestic product (GDP) will reach 1.9%: broadly in line with the government’s target of defence funding reaching 2% of GDP in FY 2020/21.

Funding over the forward estimates – the three years beyond the new budget – will total AUD160.7 billion, with the 2020/21 estimate set at AUD41.2 billion.

In a joint statement Defence Minister Marise Payne and Minister for Defence Industry Christopher Pyne said that the budget continues to deliver on the long-term plans set out in the 2016 Defence White Paper to secure Australia’s interests in the coming decades, despite growing global uncertainty and complexity.

Source: www.janes.com