The Defence Ministry's budget for fiscal 2008 is expected to increase 24.33 per cent to Bt143 billion, from the current fiscal year's Bt115.02 billion.

However, a source at the Finance Ministry, which is finalising the fiscal-2008 budget, said it tended to rise because of future obligatory expenditures.

"There are many long-term projects that need central-budget financing until 2010," said the source, who asked to remain anonymous.

The government will present the draft budget bill for fiscal 2008 to the National Legislative Assembly (NLA) from July 4-5. With anti-coup groups campaigning to oust the Council for National Security (CNS), critics will be paying close attention to the Defence Ministry budget. The debate is expected to intensify during the NLA reading.

Most of the budget will go to the Royal Thai Army, which will be allocated Bt70 billion, up 23.11 per cent from its previous Bt56.86 billion. However, the Army has 10 obligatory projects worth Bt6 billion, including reinforcements for the restive South, which will be implemented in fiscal 2008 and 2010. While only Bt1.2 billion will be spent next fiscal year, it still needs an additional Bt4.8 billion over the next two years.

The Defence Ministry also has many other projects. It plans to build residential units and facilities worth Bt1.65 billion. The projects will start with only Bt330 million from the fiscal-2008 budget. In each of the next two fiscal years, the Defence Ministry will need another Bt660 million.

The Defence Ministry also plans to build a new office building costing Bt253.84 million. It has asked for a budget of Bt50.77 million starting in fiscal 2008. To complete the project, the ministry will still need another Bt203.07 million in the next fiscal year.

Meanwhile, the Defence Ministry is also in the middle of a capital-expenditure project (to increase the quality and performance of the armed forces) worth Bt750 million. The project will run from 2007 to completion in 2009. While only Bt100 million has been spent in fiscal 2007, the ministry will need another Bt337.5 million and Bt312.5 million in the 2008-09 fiscal years.

Another huge investment project concerns a communications network worth Bt890.42 million. While the project is set to start next year with only Bt178 million, the remainder will be required in 2009 and 2010.

The source noted that the ministry was also obliged to allocate Bt152.6 million to the CNS. Formed after the September 19 coup, the CNS would remain until the formation of the elected government, probably this December or next January.

The ministry also plans to inject Bt155 million into its money-losing state enterprises - the Tanning Organisation and the Battery Organisation - even though there was an earlier agreement between the Finance and Defence ministries to dissolve both of them.

These spending projects are under the supervision of the Office of the Permanent Secretary of the Defence Ministry.

Wichit Chaitrong

The Nation

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Defence expenditures

Defence Ministry projects requiring an additional budget from fiscal 2008 on.

1. Residential units/facilities: Bt1.65 billion

2. New office building: Bt253.84 million

3. Capital-expenditure project: Bt750 million

4. Communications network: Bt890.42 million

5. Council for National Security: Bt152.6 million