Budget

 Appropriations for National Defence in 2011

Appropriations of the Ministry of National Defence approved by the Law on the Approval of Financial Indicators of the State Budget and Municipal Budgets of 9 December 2010 of the Seimas of the Republic of Lithuania amounts to LTL 871.0m (including assignations for the Lithuanian Riflemen’s Union – LTL 1.5m), i.e., 0.85 percent of GDP (GDP projection of March 2011), or 3.3 percent of approved expenditures of the State Budget (LTL 26.380m, including the EU support assets - LTL 6.922m).

Appropriations approved for 2011 for the Ministry of National Defence as administrator of appropriations are increased to LTL 25.6m, or by 3 % in comparison to the implementation of the Budget in 2010. Appropriations are increased in relation to the adopted laws approving the duty to pay (as of 1 January 2011) additional fees of the assured for mandatory health insurance, the transfer of war service administration function to the Lithuanian Armed Forces from the municipalities, and an increase of appropriations in warfare training sector.

The major attention is paid to retaining military capabilities, fulfillment of international commitments, preparation and warfare training of troops. The priority activities to receive financing in the National Defence System are the following:

• to train for and continue participating in the ongoing multinational operations (with a special emphasis on the NATO-led operation in Afghanistan);

• conduct combat training of the regular divisions and personnel of the Lithuanian Armed Forces as well as of the National Defence Volunteer Force;

• to train for and conduct standby in NATO Response Force and the EU Battle Groups;

• to render Host Nation Support for the NATO Air Policing Mission in the Baltic States;

• to conduct military training (compulsory military service, training of cadets, and specialized courses for soldiers) at the military education institutions of the National Defence System;

• to conduct search and rescue in a designated area of responsibility;

• to conduct surveillance of airspace and territorial sea.

Expenditures according to sectors:

To maintain personnel – LTL 565.6m (65℅);

To maintain short- and long-term assets – LTL 161.4m (18.5 ℅);

For participation in multinational operations (PMO) – LTL 41.3 (4.7 ℅.);

For weapons and military equipment – LTL 11,9m (1.4 ℅);

For constructions and procurement – LTL 90.8m (10.4 ℅.).

Distribution of appropriations approved for the National Defence System (NDS) according to types:

for expenditures– LTL 768.3m (88.2 ℅);

investment – LTL 90.8m (10.4 ℅);

weapons and military equipment– LTL 11.9m (1,4 ℅);

Financing of the National Defence System programmes

After discontinuation of the Special Services Programme in 2011 there are nine National Defence System programmes.

The greater part of appropriations budgeted for the Ministry of National Defence as the administrator of the appropriations in 2011– LTL 629.3m (72.3 ℅) are assets for six programmes (Land, Special Operations, Air, Naval Forces, Military operations and Logistics) directly related to the scope of defence capability and involved in multinational operations.

Land Force Programme which ensures training capabilities participating in multinational operations and missions for armed defence of the national land area and formation of active reserve receives 24 ℅, Logistics Programme which ensures logistic support for units of the Lithuanian Armed Forces in Lithuania and beyond – 13.3℅ appropriations of the National Defence System.

The remaining part of the appropriations– LTL 241.7m (27.7 proc.) – is allocated from the MoND Budget for the National Defence System’s personnel administration, training and instruction, Centralized Services, formation of the National Defence Policy and organisation of its implementation programmes.

10.6℅ is allocated for the National Defence System’s Personnel Administration, Training and Instruction Programme aimed at training Lithuanian Armed Forces’ and active reserve personnel in accordance to the NDS needs (except the function of war service administration), Formation of the National Defence Policy and Organisation of its Implementation Programme aimed at completion of strategic planning and generation of an efficient administrational system receives 8.5℅, 3℅from which are administrational expenditures. Administrational expenditures are cut by 0.5℅ in 2011 in comparison to the implementation in 2010.

APPROPRIATIONS FOR NATIONAL DEFENCE IN 2010

In 2010 expenditures for national defence included the Budget and Expenditures for administration of war service and mobilization in municipalities.

Amended plan of national defence expenditures in 2010 amounted to LTL 854.5m, or 0.90 ℅ GDP (LTL 94 625. 3m according to the data of the Statistics Department of 28 February 2011):

For the Ministry of National Defence LTL 850.7m;

For administration of war service and mobilization in municipalities LTL 3.8m.

Expenditures of the Ministry of National Defence in 2010 (implementation of the Budget) were LTL 845.4m, or 0.89℅ DGP.

Proportions of expenditure distribution in line with NATO standards will be restored with regard to improving financial situation and increased financing of the National Defence System.

Appropriations for National Defence in 2009

In 2009 expenditures for national defence included the Budget and Expenditures for administration of war service and mobilization in municipalities.

Amended plan of national defence expenditures in 2009 amounted to LTL 1 005.6m, or 1.09℅ GDP (LTL 92 016.0m on the basis of projection of September 2010 of the Ministry of Finance):

• For the Ministry of National Defence as administrator of the appropriations - LTL 999.9m;

• For administration of war service and mobilization in municipalities LTL 5.7m..

In 2009 implementation of the Budget of the Ministry of National Defence amounted to LTL 994.2m or 1.08 ℅ GDP (LTL 92 016.0m on the basis of projection of September 2010 of the Ministry of Finance).