Australia Boosts Defense Spending 6.1%, Cuts Foreign Aid and Pegs Future Growth to Inflation

[mota bhai 2,675]

As reported by Jane’s, “Australia’s defense spending for the 2014-15 financial year will rise by AUD2.3 billion (USD2.14 billion) to AUD29.3 billion, a real increase of 6.1%.” Jane’s also noted that this would constitute a .1 percent increase in defense spending as a percentage of GDP, from 1.7 percent to 1.8 percent.

...

In a speech to parliament earlier this week, Australia’s Treasurer, MP J. B. Hockey, said: “The Government is committed to building defense spending to two percent of GDP within a decade and by the middle of next year the Government will have a new strategic plan for the defense of the nation.”

The projected defense spending increases in the year ahead appear to be coming, at least in part, at the expense of other kinds of foreign affairs spending, most notably the aid budget. For example, over at the Lowy Interpreter, Alex Oliver notes:

“The aid budget has been dramatically shaved. We knew this was coming, and there will be more on this later in the week from development experts, but the top line is that Government will save $7.6 billion over five years ‘by maintaining official development assistance (ODA) at its nominal 2013-14 level of $5.0 billion in each of 2014-15 and 2015-16′. From then, it will be pegged to CPI, as foreshadowed by the Minister early this year. This will cut particularly deeply in 2017-18, where the savings will amount to more than $3.5 billion. These are deeper cuts than previously thought.”

http://thediplomat.com/2014/05/australia-boosts-defense-spending-6-1/

[spookyturtle 9,466]

As long as they continue to rank in the top 10 of the happiest countries, all is good.

[mota bhai 2,675]

As long as they continue to rank in the top 10 of the happiest countries, all is good.

Generally, the happiest countries are those with tiny defense budgets. Australia seems determined to be a real power in the region. They can say bye bye to happiness.

[luckytxn 2,265]

Be a real power with that meager increase?

Generally, the happiest countries are those with tiny defense budgets. Australia seems determined to be a real power in the region. They can say bye bye to happiness.

[mota bhai 2,675]

Be a real power with that meager increase?

In that region, yes. Look at who their neighbors are. Indonesia is pathetic. The closest rival is China and China's naval capabilities are pretty sad. The PLA's strength is the sheer number of boots they can put on the ground; Australia's a friggin' island!

[luckytxn 2,265]

Yes China has started spending a lot more to build up their navy. They plan on doing more. This meager increase will not offset their expansion. Australia expects the U.S. to offset their lack of spending.

In that region, yes. Look at who their neighbors are. Indonesia is pathetic. The closest rival is China and China's naval capabilities are pretty sad. The PLA's strength is the sheer number of boots they can put on the ground; Australia's a friggin' island!