WARSAW, (BM) – The Ministry of Finance informed that an amount much higher than that guaranteed in the Budget Act for 2020 is planned for expenditure related to national defense, learned BulgarianMilitary.com citing Defence24.
The Ministry of Finance indicates that in 2020 the national defense is to have a budget of a total of PLN 52 billion [$14B], all based on an amendment recently adopted by the government. Combined with the expected decline in GDP in 2020, this means that the share of defense spending in this indicator will be significantly higher than originally provided for in the Act by 2.1%.
We would like to remind you that initially it was planned to spend PLN 49.9 billion [$13,3B] on national defense in 2020 (2.1% of GDP assumed for this year), of which PLN 49.015 billion [$13B] in the part of budget no. 29 national defense.
In its post on social media, the Ministry of Finance talked about an increase of “3 billion”, up to PLN 52 billion [$14B]. Therefore, it is not clear from the information provided which value the Ministry of Finance referred to.
It is also unclear what the additional funds will be spent on. It is possible, however, that they will be allocated, at least in part, to cover the additional costs incurred by the Ministry of National Defense in connection with fighting the effects of the coronavirus pandemic.
This included, for example, unplanned purchases of protective equipment for soldiers, as well as the costs associated with their involvement both inside the country and on its borders (from March to June this year).
Such a significant increase in outlays means that the additional budget may also include other areas related to, for example, technical modernization, investments or support for enterprises – for example under the Economy Mobilization Program.
Projects are being implemented in leading NATO countries to mitigate the effects of the pandemic on the armaments industry and to maintain production continuity and the development of new systems.
We will probably get to know the details of the budget amendment in the further works, because the amended draft must now be approved by both houses of parliament.
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