BERLIN --- Section 14 of the Federal Budget plan 2005, which regulates finances for Federal Ministry of Defence, was adopted on 24 November by the Bundestag.
The defense budget amounts to 23.9 billion euro. Operating expenditure, with 73.1 percent of the total, accounts for the lion's share. Its largest single item is personnel expenditure, which amounts to approximately 12 billion euro.
Defense capital expenditures amount to 6.1 billion euro, or 25.7 percent of the total. The largest item in this section is military procurement, with 4.2 billion euros.
In the coming years, the budget of the German Federal Armed Forces is due to gradually increase: For 2006, without consideration of additional proceeds, a total budget of 24 billion euros is planned.
In 2007 and 2008, the total planned budget envelopes are 24.7 billion euros.
These increases will be accompanied by a further reduction of operating expenditure, to favor investments. Thus, the share of defense-capital expenditures will grow to 28.9percent by 2008.
According to the same plans, the share of operating costs will drop from the current 73 per cent sinks to a goal of 69.4 percent in 2008.