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September 30th, 2008

Hungary to up military spending next year by 6%

Hungary’s defence ministry budget is expected to grow by 21 billion forints next year as more funding is directed towards defence spending, military technology and support for the ministry’s main health-care facility, a gov’t official told MTI on Tuesday.

Overall defence spending will increase by 6.0 percent next year and will account for 1.17 percent of gross domestic product, according to a ministry statement.

Defence spending next year is expected to amount to 338.4 billion forints, and this figure includes 14.6 billion of the ministry’s own revenues.

From the central budget alone, the portfolio will receive a total of 323.8 billion forints, 7.0 percent more than this year, the document added.

As a result of efforts to restructure the military — reducing personnel costs and operational expenses — the army will be in a position to spend more, as much as 77.7 billion forints, on technological developments.

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4 Comments

  1. Ricsi says:

    A great to be increasing military spending !

  2. Demagogue says:

    Can anyone tell me what the Hungarian armed forces actually do now, apart from providing some troops for NATO/UN duties and providing a channel for embezzlement and the theft of anti-tank missles?

  3. Farkas Laszlo says:

    Defense spending can have multiple purposes; one of them is to function as a de facto industrial policy (an idea mentioned by Noam Chomsky) and jobs program. Keeping people employed, either as soldiers or people making all the things soldiers need, from complex weapons to contractor work. The monies expended have a huge ripple effect. It amounts to a big “Keynesian” stimulus- although not the kind that Keynes originally envisioned. Some military spending has a huge and profitable civilian spinoff- the “Hummer” military vehicle is a prime example.
    In an ideal world, I would prefer a civilian driven, peacetime industrial policy, such as that which Japan’s leaders devised after WW2- complete with 15 and 20 year timelines. The problem with that is that outside of Asia, few industrial and political leaders can think that way.
    Our sorry little nation historically has not had a ruling class that could think strategically or in terms of grand industrial and merchantile policy. Perhaps it’s never too late to learn! Ein Ungarische Hummer anyone?

  4. mawar says:

    “……providing a channel for embezzlement and the theft of anti-tank missiles? “
    hmmm…beside that, in the good ol’ NATO our soldiers – spend our money, mentally suffer, go berserk, protect “human rights”, look for non existent WMD, look for binWHOMEVER, destabilize a region, scared, even cry and KILL any living creature off the face of the earth! And protecting our environment!! Ain’t that enough? Believe it or not, they could also DIE …. So, don’t do a lot of brouhaha….. Just relax; they have died for a mighty good cause!!
    Some of them may ask “why da hell do we go?”
    http://www.youtube.com/watch?v=smlrSYiYd_o