The defence budget for the accord period has been established on the assumption that the defence budget will be adjusted according to previous practice :
The defence budget
(all the amounts are stated according to the 2004 price index).
All amounts are in MDKK
|
2005
|
2006
|
2007
|
2008
|
2009
|
|
19,100
|
18,600
|
19,300
|
19,300
|
19,200
|
To this should be added the transfer of the national emergency management agency, with affiliated budget (approximately DKK 450 million) to the sphere of the Minister of Defence as from 1 February 2004.
Danish Defence is to be fully compensated for the operation of the ice-breaking services and for any new acquisitions for this.
An allocation of DKK 900 million p.a. of total defence budget for 2005 is earmarked for the participation of Danish armed forces in international operations. In addition, DKK 50 million is to be earmarked for international police readiness effort.
The reserve totalling DKK 950 million is to be allocated to Section 35. General reserves may only be used following a decision by the Government and the Parliament.
The reserve may only be activated for international operations. A less consumption of up to DKK 200 million can be carried forward to the subsequent fiscal year.
If more than DKK 200 million are not spent in a fiscal year, the remainder will revert to the national treasury. In case of a possible excess consumption the Parliament will decide how to provide the necessary funding.
Investment in equipment is to be increased and targeted in relation to relevant, future operational capacities to an extent that assists in reducing the “technology gap” between Denmark and certain other allies.
It should also be ensured that Denmark can live up to the commitment to participate in NATO’s capability initiatives, including strategic sea and air transport, air tanking, etc., stated by the Government during the NATO Summit in autumn 2002.
Equipment investments
Approximately DKK 2.845 billion is to be set aside each year for equipment investment and just as in the present accord period, there must be a general balance between payments and allocations for new projects throughout the accord period.
The equipment debt at the end of 2009 will thus correspond to the debt at the end of 2004 of approximately DKK 6.7 billion (2004 price index). An equipment survey is enclosed.