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