Budzet Mon 2007 ang

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This publication provides the basic information on the national budget and defence expenditures in the year 2007. The presentation includes macroeconomic indicators, defence priorities and overall defence expenditures, Ministry of National Defence (MoND) budget allocations, main cost categories breakdown, off budget resources, manpower and comparisons to some NATO averages. The 2007 defence expenses will be spent on NATO Goals and Long Term Requirement implementation, on training and equipping to forces assigned to the missions leaded by NATO, EU and UN and coalition, on counterterrorism fighting, on preparation to the NATO mission in Afganistan, on new armament and equipment, on ground surveillance system and on early warning system and as well on the other MoND tasks and missions. To fulfill scheduled defence tasks and missions Poland has allocated to defence expenditures 20,202.0 millions zloty (MPLN). Within that amount MPLN 20,156.0 was allocated to Ministry of National Defence and MPLN 46.0 to the other ministries for non-military defence preparations. The 2007 defence expenditure ceiling has been established according to formula defined in the act dated 25 May 2001 on restructuring, modernization and financing of Polish Armed Forces. It means that the defence appropriations are not less than 1.95% of the Gross Domestic Product (GDP) of the year 2006. Additionally for the implementation of the F-16 aircraft procurement program the amount of MPLN 1,376.9 has been allocated. What more, MoND also expects to strengthen modernization process of the armed forces by collecting some off budget resources (domestic and foreign), which are detailed farther on. Regardless of many positive trends in the budget, all the armed forces needs will not be fulfilled. Despite real increase of defence expenditures and many MoND efforts to get good value for money the Polish Armed Forces still needs more resources to be allocated to military training. For the time being training intensity differs and depends on unit’s assignment. MoND hopes that Polish economy will be still growing what in consequence allows Poland to make bigger appropriations to the defence tasks and missions. 2

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3

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4 Average annual increase - 10.5 % 4

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Armed Forces Modernisation Fund MPLN 62.7 Revenues from defence sector privatisation MPLN 9.8 Defence research in Ministry of Education and Science MPLN 121.0 NSIP (NATO SECURITY INVESTMENT PROGRAMME) MPLN 333.1 FMF (FOREIGN MILITARY FINANCING – USA PROGRAMME) MPLN 91.2 IMET (INTERNATIONAL MILITARY EDUCATION AND TRAINING) MPLN 6.1 CTFP (COUNTER TERRORISM FELLOWSHIP PROGRAM) MPLN 0.5 5

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6 The 2007 defence expenses will be spent on: NATO Goals and Long Term Requirement implementation training and equipping to forces assigned to the missions leaded by NATO, EU and UN and coalition counterterrorism fighting, and on preparation to the NATO mission in Afganistan new armament and equipment ground surveillance system and on early warning system

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7

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12 79,453 soldiers 25,417 soldiers 27,537 soldiers 10,406 soldiers 55.6% 7.3% 19.3% 17.8%

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14 (%)

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current prices Source: Based on NATO’s statistical tables 2005, except for Poland, which was prepared according to budget allocation and exchange rate used during budget planning phase 15

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16 Source: Based on NATO’s statistical tables 2005, except for Poland, which was prepared according to budget allocation and exchange rate used during budget planning phase current prices

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17 The 2007 defence expenditures will permit MoND to give priorities to the tasks listed on the slide No. 6 In 2007 the process of professionalize Polish Military Forces will be continued with simultaneous restructuring of salaries. The 2007 will be an another year when Polish defence expenses are supported by the significant NATO funds allocated to implementation of the NSIP CPs (NATO Security Investment Program Capability Packages). The Polish defence efforts also are to be supported by the USA grants.