Monday. 23.09.2019
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Budget: 3.16 billion for defence, with focus on equipment and materiel readiness

A considerable share, about 1.17 billion euros or 43% of the national defence appropriations will be used on materiel readiness. This includes procurement of defence materiel, equipping of troops by means of operating cost funding and materiel maintenance costs. 54 million euros will be used for upgrading armoured vehicles, procuring engineer material, as well as explosive and battle effects simulation systems for training.
Finnish soldiers training. Photo: Maavoimat/The Finnish Army.
Finnish soldiers training. Photo: Maavoimat/The Finnish Army.
Budget: 3.16 billion for defence, with focus on equipment and materiel readiness

The draft budget of the administrative branch of the Ministry of Defence is 3.16 billion euros for 2020, which is about 24 million euros or 0.8 per cent higher than the 2019 budget, informed today Finnish Ministry of Defence in a press release.

The administrative branch accounts for 1.26% of the anticipated gross domestic product (GDP) in 2020 (in 2019 it was 1.30%).

7 millions to establish new jobs

Review of salaries and other costs increase expenditure in the administrative branch by 33 million euros. On the basis of the Government programme, an increase of 10 million euros is proposed for the Defence Forces' operating expenditure appropriations; of these, 7 million euros is allocated to establishing a hundred new jobs.

It is also proposed that both reservist training and voluntary national defence training receive an increase of 1.5 million euros.

Considerable budget to materiel readiness

A considerable share, about 1.17 billion euros or 43%, of the national defence appropriations (without value-added tax expenditure) will be used on materiel readiness. This includes procurement of defence materiel, equipping of troops by means of operating cost funding and materiel maintenance costs.

An appropriation of 20 million euros is proposed for the preparatory process preceding the procurement of multi-role fighters. It is also proposed that the amount be transferred to budget year 2020 from the spending limits reserve of the HX programme for 2021.

Two new authorisation orders

An authorisation order of 54 million euros is proposed for the procurement of defence materiel; this expenditure is scheduled for 2020-2022.

The authorisation order will be used among other things for upgrading armoured wheeled vehicles and procuring engineer materiel as well as explosive and battle effects simulation systems to be used in training.

Additionally, it is proposed that an authorisation order of approximately 132 million euros be added to the operating costs of the Defence Forces for 2020-2024 for procuring spare parts and concluding service and maintenance agreements for systems.

Increased support to voluntary national defence

In line with the Government Programme, resources for national defence organisations will be secured and the Act on Voluntary National Defence will be implemented.

The National Defence Training Association will receive an increase of 2.8 million euros in state subsidy for 2020 through appropriation transfers within the defence administration. Also, the Defence Forces' operating costs will be increased by 1.5 million euros.

Military crisis management

A total of 60 million euros is proposed for equipment and administrative expenses in military crisis management.

The maintenance expenses of Finnish crisis management troops (53 million euros) are included in the appropriations of the Ministry for Foreign Affairs. It is estimated that the overall strength of crisis management troops will be at the most 500 person-years.

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