Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

It sounds as if I have an ally in trying to increase defence spending. I will remember that at budget time.

Each year, the defence budget is determined within the overarching budgetary framework and approved by Dáil Eireann, having regard to the level of resources available and defence policy requirements. Capital funding allocations are also framed by the multi-annual national development plan. Expenditure on the Defence Forces is managed through the defence Vote 36, with all operational outputs delivered from a single set of forces encompassing the Army, Air Corps and Naval Service. Defence Vote 36 provides funding for the pay and allowances of members of the Defence Forces, civilian employees and departmental staff, ongoing Defence Forces operational and standing costs, the acquisition of military equipment along with the development of the Defence Forces built infrastructure. It also provides funding for Civil Defence and the Irish Red Cross Society. Separately, Vote 35 provides for military pensions.

Overall gross defence Vote 36 expenditure of €781 million in 2020 was some €110 million or 16% greater than the 2016 figure of €671 million. Capital expenditure on equipment and infrastructure has increased by €58 million over the same period. The allocation of €810 million provided for the defence Vote 36 in 2021 represents an increase of €29 million, or 4%, on the corresponding allocation provided in 2020 and an increase of €139 million or 21% on 2016 expenditure.

Percentage of GDP comparisons of defence expenditure include military pensions expenditure when calculating such percentages. Between 2016 and 2020, while the defence expenditure in Vote 35 and Vote 36 increased from €905 million to €1,032 million, the defence expenditure in Vote 35 and Vote 36 as a percentage of GDP decreased marginally from 0.33% to 0.28%. This was against the backdrop of a very significant increase of some €96 billion or 35% in Ireland’s GDP figure between 2016 and 2020.

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