Defence 2014-15 Budget Slideshow

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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.
– $3.7 billion for Administered.
Defence 2014-15 Budget
Summary of the Defence 2014-15 Budget (cont’d)
Defence Budget Over the 2014-15 Forward Estimates
2013-14
$bn
Budget
2014-15
$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
30.7
32.7
33.9
34.1
36.9
137.5
Total Defence Budget
Forward Estimates
2015-16
2016-17
2017-18
$bn
$bn
$bn
Total FEs
$bn
Defence 2014-15 Budget
Summary of the Defence 2014-15 Budget (cont’d)
Defence Budget as a % of GDP
2013-14
Budget
2014-15
Forward Estimates
2015-16
2016-17
2017-18
% of GDP (2014-15 Budget)
1.71
1.79
1.77
1.69
% of GDP (2013-14 Budget)
1.57
1.63
1.63
1.63
1.75
Capital
Operating
Year
Employee
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
$m
Defence 2014-15 Budget
Defence Departmental Spend by Category ($m) - as at PBS 2014-15
16,000
PBS 2014-15
14,000
12,000
10,000
8,000
6,000
4,000
2,000
Capital
Operating
Year
Employee
2023-24
2022-23
2021-22
2020-21
2019-20
2018-19
2017-18
2016-17
2015-16
2014-15
2013-14
2012-13
2011-12
2010-11
2009-10
2008-09
2007-08
2006-07
2005-06
2004-05
2003-04
2002-03
2001-02
2000-01
Percentage of Total Budget
Defence 2014-15 Budget
Defence Departmental Spend by Category (%) - as at PBS 2014-15
65%
PBS 2014-15
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
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 Total FEs
$m
$m
25.0
190.7
-33.1
18.5
176.1
8.6
16.7
24.2
545.5
337.9
595.2
93.4
253.3
157.8
150.6
197.2
759.0
663.9
790.5
736.6
269.1 -1,912.2
-116.1
320.4
336.5
352.6
368.7
1,378.2
-156.9
-269.5
-426.4
195.7
99.2
951.8
Departmental:
Operations
Election Commitments
Other Budget Measures
Other Variations
Variation to Defence Departmental
Funding
39.5
88.9
75.8 -2,149.0 -1,140.1
Administered:
Election Commitments
Other Budget Measures
Variation to Defence Administered
Funding
320.4
336.5
Defence 2014-15 Budget
Operations
Middle East Area of Operations (MEAO)
•
•
•
Operation SLIPPER (Afghanistan).
2014-15
$m
2015-16
$m
2016-17
$m
56.0
-16.6
16.8
2017-18 Total FEs
$m
$m
0.0
56.2
Operation MANITOU (MEAO).
2014-15
$m
2015-16
$m
2016-17
$m
36.1
-9.4
1.7
2017-18 Total FEs
$m
$m
0.0
28.3
Operation ACCORDION (Gulf, Qatar, UAE)
2014-15
$m
2015-16
$m
2016-17
$m
36.0
-7.7
0.0
2017-18 Total FEs
$m
$m
0.0
28.3
Defence 2014-15 Budget
Operations (cont’d)
Operation RESOLUTE – Extension
2014-15
$m
2015-16
$m
2016-17
$m
59.7
0.6
0.0
2017-18 Total FEs
$m
$m
0.0
60.3
Operation SOUTHERN INDIAN OCEAN
2014-15
$m
2015-16
$m
2016-17
$m
3.0
0.0
0.0
2017-18 Total FEs
$m
$m
0.0
3.0
Defence 2014-15 Budget
Operations (cont’d)
ADF Support to the G20 Summit (Defence to absorb)
2014-15
$m
2015-16
$m
2016-17
$m
8.0
0.0
0.0
2017-18 Total FEs
$m
$m
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
$m
2015-16
$m
2016-17
$m
18.3
37.5
57.5
2017-18 Total FEs
$m
$m
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
$m
2015-16
$m
2016-17
$m
-7.4
-16.5
-24.8
2017-18 Total FEs
$m
$m
-27.0
-75.8
Defence 2014-15 Budget
Other Budget Measures
Summary of Budget Measures for Reinvestment
2013-14 2014-15 2015-16 2016-17 2017-18 Total FEs
$m
$m
$m
$m
$m
$m
Savings and Efficiencies
Sales of Property and Housing
45.5
173.3
214.6
251.8
557.0
1,196.7
37.9
45.2
13.5
14.1
110.6
200.0
800.0
1,000.0
700.0
700.0
465.3 2,071.1
3,007.3
AMCIP Reprogramming
DCP Reprogramming
Total Funding Available for Reinvestment
45.5
211.2
259.7
Total
$m
3,053
Defence 2014-15 Budget
Other Budget Measures (cont’d)
Total Reinvestment (Government to finalise)
AMCIP
2013-14
$m
2014-15
$m
2015-16
$m
500.0
300.0
200.0
210.1
274.0
214.5
14.1
712.7
300.0
360.0
58.0
718.0
15.6
20.1
20.0
20.5
ICT
MCF
0.6
I&S
Navy - Rizzo
Portfolio - Capital/Other
Total Reinvestment
2016-17
$m
510.7
809.6
Total
$m
500.0
45.5
545.5
2017-18 Total FEs Beyond FEs
$m
$m
$m
615.1
36.4
21.0
61.5
44.7
-42.0
-42.0
475.3
51.1
1,986.5
520.0
3,053
Defence 2014-15 Budget
Other Budget Measures (cont’d)
Savings and Efficiencies for Reinvestment
2014-15 - 500 APS, 300 Contractors
2014-15
$m
2015-16
$m
2016-17
$m
92.9
96.6
99.9
103.7
393.1
47.2
47.2
47.2
141.6
35.4
35.4
70.8
2015-16 - 400 APS
2016-17 - 300 APS
2017-18 Total FEs
$m
$m
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
173.3
214.6
251.8
557.0
1,196.7
Consultants (10% reduction in budget)
Total Savings
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
$m
2015-16
$m
2016-17
$m
0.0
0.0
-87.6
2017-18 Total FEs
$m
$m
-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.
Indicative Costs
Major Capital Facilities Offsets
2014-15
$m
2015-16
$m
2016-17
$m
2017-18 Total FEs
$m
$m
-14.2
-76.8
-218.4
-761.5 -1,070.9
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
$m
2015-16
$m
2016-17
$m
223.9
125.7
117.4
2017-18 Total FEs
$m
$m
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
$m
2015-16
$m
2016-17
$m
2017-18 Total FEs
$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
$m
2015-16
$m
2016-17
$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
300.0
300.0
DSRG - Single LEAP Phase 3
2017-18 Total FEs
$m
$m
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 Savings
2014-15
$m
2015-16
$m
2016-17
$m
2017-18 Total FEs
$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
Army - Exercise Program
0.1
DMO - ICT Support Activities
0.8
DSRG - Property Leases
Navy - Minor Capital Equip Program
5.0
CIOG - Reduce ICT Project Delivery
10.0
CDG - Devt Programs and ICT services
0.4
DSTO - DSTO Savings
DPG - Payroll-Personnel Admin Reform
0.1
0.2
2.3
2.1
2.2
7.4
2.3
8.2
9.8
20.3
5.0
5.0
5.0
20.0
10.0
0.4
0.4
0.4
1.4
0.3
0.4
0.4
1.0
1.7
DSRG - DHA Cost Reduction
Total Minor Savings
11.0
33.3
1.7
6.0
6.2
6.3
18.5
25.9
26.3
27.0
112.4
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