defence 2014-15 budget phillip prior chief finance officer
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Defence 2014-15 Budget Phillip Prior Chief Finance Officer. Defence 2014-15 Budget. Summary of the Defence 2014-15 Budget $32.7 billion in total for 2014-15. $29.2 billion for Departmental. $3.4 billion for Administered. $30.7 billion in total for 2013-14. $27.0 billion for Departmental. - PowerPoint PPT PresentationTRANSCRIPT
Defence 2014-15 BudgetPhillip PriorChief Finance Officer
Defence 2014-15 Budget
Summary of the Defence 2014-15 Budget
• $32.7 billion in total for 2014-15.
– $29.2 billion for Departmental.
– $3.4 billion for Administered.
• $30.7 billion in total for 2013-14.
– $27.0 billion for Departmental.
– $3.7 billion for Administered.
Defence 2014-15 Budget
Defence Budget Over the 2014-15 Forward Estimates
Budget2013-14 2014-15 2015-16 2016-17 2017-18 Total FEs
$bn $bn $bn $bn $bn $bn
Departmental Budget 27.0 29.2 30.3 30.3 32.9 122.7
Administered Budget 3.7 3.4 3.6 3.8 4.0 14.8
Total Defence Budget 30.7 32.7 33.9 34.1 36.9 137.5
Forward Estimates
Summary of the Defence 2014-15 Budget (cont’d)
Defence 2014-15 Budget
Defence Budget as a % of GDP
Budget2013-14 2014-15 2015-16 2016-17 2017-18
% of GDP (2014-15 Budget) 1.71 1.79 1.77 1.69 1.75
% of GDP (2013-14 Budget) 1.57 1.63 1.63 1.63
Forward Estimates
Summary of the Defence 2014-15 Budget (cont’d)
Defence 2014-15 Budget
Defence Departmental Spend by Category ($m) - as at PBS 2014-15
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
20
00
-01
20
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20
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Year
$m
Capital Operating Employee
PBS 2014-15
Defence 2014-15 Budget
Defence Departmental Spend by Category (%) - as at PBS 2014-15
10%
15%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
20
00
-01
20
01
-02
20
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Year
Pe
rce
nta
ge
of
To
tal B
ud
ge
t
Capital Operating Employee
PBS 2014-15
Defence 2014-15 Budget
Defence 2014-15 Budget Measures – Departmental & Administered
2013-14$m
2014-15$m
2015-16$m
2016-17$m
2017-18$m
Total FEs$m
Departmental:
Operations 25.0 190.7 -33.1 18.5 176.1
Election Commitments 8.6 16.7 24.2 39.5 88.9
Other Budget Measures 545.5 337.9 595.2 75.8 -2,149.0 -1,140.1
Other Variations 93.4 253.3 157.8 150.6 197.2 759.0
Variation to Defence Departmental Funding 663.9 790.5 736.6 269.1 -1,912.2 -116.1
Administered:
Election Commitments 320.4 336.5 352.6 368.7 1,378.2
Other Budget Measures -156.9 -269.5 -426.4
Variation to Defence Administered Funding 320.4 336.5 195.7 99.2 951.8
Defence 2014-15 Budget
Operations
Middle East Area of Operations (MEAO)
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
56.0 -16.6 16.8 0.0 56.2
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
36.1 -9.4 1.7 0.0 28.3
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
36.0 -7.7 0.0 0.0 28.3
• Operation SLIPPER (Afghanistan).
• Operation MANITOU (MEAO).
• Operation ACCORDION (Gulf, Qatar, UAE)
Defence 2014-15 Budget
Operations (cont’d)
Operation RESOLUTE – Extension
Operation SOUTHERN INDIAN OCEAN
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
59.7 0.6 0.0 0.0 60.3
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
3.0 0.0 0.0 0.0 3.0
Defence 2014-15 Budget
Operations (cont’d)
ADF Support to the G20 Summit (Defence to absorb)
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
8.0 0.0 0.0 0.0 8.0
Defence 2014-15 Budget
Election Commitments
Reinstatement of the ADF Gap Year Programme
• Includes an additional 1,033 Average Funded Strength (mature state) for staff and participants.
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
18.3 37.5 57.5 78.5 191.8
Defence 2014-15 Budget
Election Commitments (cont’d)
Efficiency Dividend
• Efficiency dividend increase by 0.25% to 2.5% (11% of the Budget).
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
-7.4 -16.5 -24.8 -27.0 -75.8
Defence 2014-15 Budget
2013-14$m
2014-15$m
2015-16$m
2016-17$m
2017-18$m
Total FEs$m
Total$m
Savings and Efficiencies 173.3 214.6 251.8 557.0 1,196.7
Sales of Property and Housing 45.5 37.9 45.2 13.5 14.1 110.6
AMCIP Reprogramming 200.0 800.0 1,000.0
DCP Reprogramming 700.0 700.0
Total Funding Available for Reinvestment 45.5 211.2 259.7 465.3 2,071.1 3,007.3 3,053
Other Budget Measures
Summary of Budget Measures for Reinvestment
Defence 2014-15 Budget
2013-14 2014-15 2015-16 2016-17 2017-18 Total FEs Beyond FEs Total$m $m $m $m $m $m $m $m
AMCIP 500.0 300.0 200.0 500.0
ICT 210.1 274.0 214.5 14.1 712.7
MCF 300.0 360.0 58.0 718.0
I & S 0.6 15.6 20.1 36.4
Navy - Rizzo 20.0 20.5 21.0 61.5 44.7
Portfolio - Capital/Other 45.5 -42.0 -42.0 475.3
Total Reinvestment 545.5 510.7 809.6 615.1 51.1 1,986.5 520.0 3,053
Other Budget Measures (cont’d)
Total Reinvestment (Government to finalise)
Defence 2014-15 Budget
Other Budget Measures (cont’d)
Savings and Efficiencies for Reinvestment
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
2014-15 - 500 APS, 300 Contractors 92.9 96.6 99.9 103.7 393.1
2015-16 - 400 APS 47.2 47.2 47.2 141.6
2016-17 - 300 APS 35.4 35.4 70.8
Consultants (10% reduction in budget) 6.0 6.0 6.0 6.0 24.0
Major Savings 41.1 38.9 37.0 337.7 454.8
Minor Savings 33.3 25.9 26.3 27.0 112.4
Total Savings 173.3 214.6 251.8 557.0 1,196.7
Defence 2014-15 Budget
Other Budget Measures (cont’d)
New Military Superannuation Scheme
• MSBS closed and a new superannuation scheme for new members from 1 July 2016.
• Employer contributions will be 15.4% and 18% for periods of war-like service.
• Death and disability will be the same
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
0.0 0.0 -87.6 -143.1 -230.7
Defence 2014-15 Budget
Other Budget Measures (cont’d)
US Force Posture Initiative
• The cost will be met from within the existing Defence budget and are still under negotiation.
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
Indicative Costs -14.2 -76.8 -218.4 -761.5 -1,070.9
Major Capital Facilities Offsets 14.2 76.8 218.4 761.5 1,070.9
Defence 2014-15 Budget
Other Budget Variations
Foreign Exchange
• Foreign Exchange is provided to Defence on a no-win, no-loss basis.
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
223.9 125.7 117.4 162.6 629.6
Defence 2014-15 Budget
Election Commitments - Administered
Fair indexation of Defence Superannuation
• From 1 July 2014, DFRB and DFRDB improved indexation arrangements.
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
320.4 336.5 352.6 368.7 1,378.2
Defence 2014-15 Budget
Growing the Defence Budget to 2% of GDP Within a Decade
• The Government remains committed to growing the Defence budget to 2% of GDP within a decade.
Defence 2014-15 Budget
Questions?
Defence 2014-15 Budget
Other Budget Measures (cont’d)
Major Savings
2014-15 2015-16 2016-17 2017-18 Total FEs$m $m $m $m $m
Army - Clothing Procurement 7.8 7.8 7.8 7.8 31.2
Army - B Vehicle Sustainment 15.0 15.0 15.0 15.0 60.0
DSRG - Single LEAP Phase 3 300.0 300.0
CFOG - Smart Sustainment 18.3 16.1 14.2 14.9 63.6
Total Major Savings 41.1 38.9 37.0 337.7 454.8
Defence 2014-15 Budget
Other Budget Measures (cont’d)
Minor Savings2014-15 2015-16 2016-17 2017-18 Total FEs
$m $m $m $m $m
VCDF - Non-progression of Duntroon MCU 1.5 6.8 1.1 9.4
VCDF - PPOC Project 0.5 0.5 0.5 0.6 2.1
Air Force - Reduction in Removals 2.3 2.3 2.4 2.4 9.3
Army - Military Employee Savings 11.0 11.0
Army - Exercise Program 0.1 0.1 0.2
DMO - ICT Support Activities 0.8 2.3 2.1 2.2 7.4
DSRG - Property Leases 2.3 8.2 9.8 20.3
Navy - Minor Capital Equip Program 5.0 5.0 5.0 5.0 20.0
CIOG - Reduce ICT Project Delivery 10.0 10.0
CDG - Devt Programs and ICT services 0.4 0.4 0.4 0.4 1.4
DSTO - DSTO Savings 0.3 0.4 0.4 1.0
DPG - Payroll-Personnel Admin Reform 1.7 1.7
DSRG - DHA Cost Reduction 6.0 6.2 6.3 18.5
Total Minor Savings 33.3 25.9 26.3 27.0 112.4