The Norwegian Defence Budget 2010

The Government proposes to allocate NOK 34.9 billion for defence in 2010. The Northern regions, international peace operations and the veterans are given priority.

The budget represents an increase of NOK 1.47 billion and a real term increase for the defence sector of 395 million above the wages and inflation rate. In accordance with the long-term plan, a further NOK 290 million is released through cost-effectiveness measures, structural changes according to the long-term plan and reduced costs from measures to stimulate voluntary retirement. This means an increase in purchasing power for the defence sector of NOK 685 million.

”The Government continues to strengthen the Armed Forces, and the budget illustrates the Government’s commitment to the ambitions of the long-term plan. I am very pleased that we have already increased the budget with NOK 500 million of the NOK 800 million increase by 2012 as agreed in the long-term plan. The high budget level signifies a maintained strategic focus on and military presence in the Northern regions, and it denotes a continuation of the high level of contributions to international peace operations under the auspices of the UN, NATO and the EU,” says Defence Minister Anne-Grete Strøm-Erichsen.

The Northern regions are the Government’s prime area for strategic investment. The Armed Forces’ presence in North Norway, with the Navy and Coast Guard, but also air and land forces, is given a high priority. Exercise Cold Response is the Armed Forces’ most important exercise and will take place in Troms and Nordland in Northern Norway this winter.

The budget for international peace operations sees a significant increase in order to maintain Norway’s high level of contributions to operations abroad. Afghanistan will continue to be Norway’s most important international peace mission, and the focus will be on building Afghan capacity. Norway’s contribution with a field hospital and well drilling unit to the UN mission in Chad and the Central African Republic (CAR), MINURCAT, will continue until May 2010 as planned. Norway’s contribution with a Fridtjof Nansen class frigate to the EU’s maritime operation outside Somalia will be terminated early 2010. However, the Government will follow the challenge of piracy closely, and will continuously consider further Norwegian contributions to anti-piracy operations.

Salient points of the budget proposal

The budget is in accordance with the long-term plan, which prescribes a financial boost of the defence budget of up to NOK 800 million by 2012. With the increase of NOK 100 million in this year's budget, NOK 500 million will have been allocated by 2010 already. In addition, the Government proposes an increase of allocations for international peace operations of NOK 220 million, and an allocation of NOK 50 million for a new compensation scheme for veterans from international operations.

The Armed Forces are still going through a process of modernisation, and the Government recommends that priority be given to the introduction of new capabilities, including the Fridtjof Nansen class frigates, Skjold class missile torpedo boats, the C-130J transport aircraft, NH-90 helicopters and the new coast guard vessels.

The government proposes an increase of the operating budget of NOK 455 million, or 1.87 per cent, amounting to a total budget of NOK 25.2 billion. This represents a further increase in the level of activity, addressing the tasks and challenges in Norway’s adjacent sea areas. At the same time, the level of Norway’s substantial contributions to international operations will be maintained, in accordance with the long-term plan. The Government continues its special focus on veterans, and proposes to increase the allocations to the Armed Forces to cover the costs of a new compensation scheme for personnel who suffer from psychological strain deriving from their service in international operations. The government also proposes a budget increase for the national fortresses and fortifications of NOK 11.5 million, and recommends maintaining the high level of funding allocated in 2009 for military music.

The Government proposes a total investment budget of NOK 9.7 billion, including an increase in armaments investments of NOK 65.6 million to a total of NOK 7.7 billion. The Government signals a further strengthening of the armaments investment budget in the long-term planning period. In accordance with the long-term plan, considerable investments will be made to continue the process of the restructure and modernisation of the Armed Forces.