PLN 35.9 Billion - Polish Defence Budget in 2016

The capital expenses are defined by an amount of PLN 10.59 billion which constitutes 29.5% of the general outlays, related to the national defence - as it was announced by the spokesman of the Polish Ministry of Defence, col. Jacek Sońta. Within the framework of the capital expenses, amount of PLN 9.689 billion was allocated to realize the modernization. Out of that amount PLN 5.647 billion is going to be used to realize the priority tasks of the modernization, within the scope of the operational programmes.

This year’s budget, according to the act on modernization, reconstruction and funding of the Armed Forces, was to be contained in an amount of PLN 33.024 billion. The outlays within the framework of the Act is going to be PLN 3 billion higher, which stems from the higher contribution of the GDP, according to the amendment of the Act and the expected growth of the real GDP and inflation.

READ MORE: Polish President Signs a Legal Act That Increases The Military Spending

More than PLN 38 billion was spent on defence this year, where more than 5 billion is used to pay back the instalments related to the F-16C/D Block 52+ fighters. The indicated amount was not the part of the defence spending in line with the Act related to reconstruction, modernization and financing of the Polish Armed Forces.

Staff expenditures are going to reach an amount of PLN 8.241 billion, pensions are going to be covered by an amount of PLN 6.958 billion - according to the spokesman for the Polish MoD, Col. Jacek Sońta. Purchases related to repair, health and remaining services, acquisition of materials, equipment, energy and food products are going to be realized with the use of the allocated amount of PLN 6.959 billion. Further items include benefits for the natural persons - PLN 0.810 billion, remaining ongoing expenditure - PLN 1.483 billion, and subsidies related to the defence-connected tasks - PLN 1.083 billion.

2.5% of the budget is going to be used to cover the research and development within the scope of the defence (0.899 billion zlotys), in line with the provisions of the amended budgetary act. In other parts of budget, the national defence section was covered with PLN 0.236 billion, including 0.175 billion for the research initiatives within the area of defence, amount of PLN 0.037 billion was used to cover the programme of the defensive preparations outside the military and to realize the tasks related to the Economy Mobilization Programme - 0.024 billion zlotys.

In 2016, the “basic” defence budget is going to be increased in comparison with 2015, however, the total load imposed on the public finances, resulting from the defence-related tasks, is going to be lower than the one in the current year. Considering the worsening overall situation, related to the national security, increase of the defence spending above the level of 2% of the GDP would be desirable, in order to reverse the cuts implemented between 2008 and 2013, and in order to reconstruct the reserves and the paramilitary forces.

At the same time, in 2015, total expenditure at the level of 2.2% of the GDP, did not overload the public financial system excessively. A similar situation should not be the case in the upcoming years.