Govt may reject extra defense fund

Govt may reject extra defense fund

WELLINGTON: Minister of Finance Yusuf Anwar said a request
from the Ministry of Defense for an additional defense budget
this year may be difficult to fulfill due to limited funds
available in the state budget.

He said that the state budget was still in deficit.

"We cannot accommodate the demand yet. We still need to
consult with the House of Representatives budget commission
during the upcoming revision of the (2005) state budget. We will
look into the possibility then, but the chance is small," Yusuf
said on Thursday in Wellington while accompanying President
Susilo Bambang Yudhoyono during his visit to New Zealand.

Minister of Defense Juwono Sudarsono has mulled increasing
military spending by around Rp 5 trillion (US$520 million) to
improve and modernize the country's defense forces. The country's
defense budget of around Rp 21.6 trillion this year is considered
small compared to the defense budget in neighboring countries. --
JP