Defence Budget 2007 – update

Essentially, the Conservatives took some $800M from 2010/11 and brought it forward to 2007/8.

This is both good and bad news.

Given the fact that the economy is heading south, it is nice to have the money now.

However the original plan set a very nice $20 B "floor" or pseudo baseline for 2010/11 and now this will only be $19.3B. This will make it harder for DND to argue for that $20B of sustained funding for the long term. But then again, this is far into the future.

Again, as the previous posts points out some Conservatives are already unhappy with the lack of sizzle they got for this, we are in minority government territory for the next while, the economy will go south, and environmental spending will rise.

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