Defence allocation from National Treasury for 2018/19 down on previous year


The budget unveiled by Finance Minister Malusi Gigaba on Wednesday showed again that defence is one of the poor relations in the government family. In real terms the amount of money allocated to the Department of Defence and Military Veterans (DoDMV) has declined by six percent.

This must be galling for Minister Nosiviwe Mapisa-Nqakula who last May informed the National Assembly of the formation of a task team from her department and National Treasury. The team, she said, would look at the serious mismatch between defence funding and expectations placed on the SA National Defence Force (SANDF).

Four months later, Siphiwe Dlamini, Department of Defence head of communications, told defenceWeb positive meetings had been held where “intense discussions” took place and there was “appreciation and understanding by both parties around matters on the table”.

Sadly, this did not turn into a windfall of any sort when Minister Gigaba delivered his maiden budget speech in the National Assembly on Wednesday.

The total defence budget for the 2018/19 financial year is R47.9 billion, already down on the R48.9 billion allocated for the 2017/18 financial year. When inflation is taken into account defence should have been given R51.49 billion by National Treasury just to keep tread with inflation. This can be described as a real decrease of just under seven percent, an avid military aviation and history enthusiast pointed out.

The defence portion of the budget document states, in part, “in 2017/18, the department expects to maintain its personnel establishment at 75 500. However, to remain within the government’s expenditure ceiling for compensation of employees, the department plans to reduce its personnel establishment to 74 660 by 2020/21, mainly by means of natural attrition”.

Add to this that compensation of employees – wages and salaries – amounts to 56.5% of the R48.9 billion defence budget and it appears the DoD/National Treasury task team did not really make meaningful headway.

In number terms, the national budget for 2018/19 allocates R6.416 billion to air defence (R6.78 billion the previous year), R4.425 billion to maritime defence (R4.42 billion the previous year) and R16.234 billion to landward defence (R16.23 billion the previous year).