R6 billion in SDA budget

1150

The National Treasury has allocated around R6 billion to the Department of Defence for the Special Defence Account (SDA). This will remain stagnant in the medium term, rising to R6.5 billion by March 2014.

“The special defence account receives R6 billion … to acquire and upgrade main weapon systems and technology. R820.9 million will be transferred to Armscor for acquisition, maintenance and disposal services of defence matériel, the Estimates of National Expenditure says.

SDA spending is decreasing as Strategic Defence Package (SDP) payments wind down. The last is scheduled to be paid by March next year. Minister of Defence and Military Veterans Lindiwe Sisulu in January said the final estimated cost of the SDP that saw South Africa acquire 50 fighter aircraft, 30 helicopters, four frigates and three submarines, would be R47.225 billion. She added that by October 14 last year R42 362 053 814 had been spent “and the projected cost for the finalisation of the programme is R47 225 627 631.

This compares with the R47 401 billion in the National Treasury’s February 2008 Estimates of National Expenditure (ENE) and R47 483 billion in the 2007 ENE. It also contrasts with media reports that as recently as August last year persistently put the price at R60 billion, based. The 2008 ENE figure was the last publicly available figure until the release of the new figure in an answer to a Parliamentary question. Sisulu did not mention the 2007 or 2008 figures or expand on the reason for the fluctuations. Treasury ascribed the 2007-8 variance to the strengthening Rand. It is likely the latest figure reflects the same trend.

Audited

Revised estimate

Estimated

FY2007/8

FY2008/9

FY2009/10

FY2010/11

FY2011/12

FY2012/13

FY2013/14

Force Employment

R0.111bn

R0.152bn

R0.156bn

R0.129bn

R0.186bn

R0.194bn

R0.201bn

Landward Defence

R2.065bn

R2.016bn

R2.286bn

R0.414bn

R2.233bn

R2.539bn

R2.823bn

Air Defence

R4.537bn

R4.924bn

R5.167bn

R1.407bn

R2.418bn

R2.802bn

R2.290bn

Maritime Defence

R0.840bn

R0.213bn

R0.249bn

R0.249bn

R0.252bn

R0.183bn

R0.428bn

Military Health Support

R0.001bn

R0.001bn

R0.001bn

R0.024bn

R0.007bn

R0.035bn

R0.042bn

Defence Intelligence

R0.296bn

R0.332bn

R0.391bn

R0.396bn

R0.406bn

R0.413bn

R0.432bn

General support

R0.274bn

R0.405bn

R0.365bn

R0.438bn

R0.467bn

R0.439bn

R0.372bn

Total

R8.127bn

R8.046bn

R8.619bn

R3.060bn

R5.973bn

R6.607bn

R6.590bn



Pic: The M6 60mm long-range mortar being acquired for the SA Army under Project Acrobat