New Zealand proposes 6.6% cut in defence spending amid personnel and equipment woes
XMSep 18, 2020
New Zealand Considers 6.6% Cut to Defense Spending
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The Facts
The New Zealand conservative government reportedly plans to reduce military expenditure by 6.6%, despite the armed services facing challenges such as outdated equipment, a lack of personnel, and aspirations for a larger regional presence.
According to Reuters, Defense Minister Judith Collins will propose a budget allocation of NZ$4.95B ($3.03B) for the next fiscal year. This is a decrease from the previous year's budget of NZ$5.3B and a drop from 1% to 0.9% of GDP.
The Spin
Narrative A
It is a well-known fact that New Zealand's military needs a significant restructuring. One budget adjustment will not cure decades of underinvestment; defense will require massive investments for an extended period. It's problematic that insufficient military expenditure and capability will undermine Auckland's chances of becoming a member of the technology-oriented segment of the AUKUS defense alliance.
Narrative B
Economic realities have confronted the conservative administration of New Zealand, making it unable to sustain its objective of increasing its military expenditure. Everyone agrees that increasing expenditure is necessary. However, the government will need to implement a significant reduction in spending across all ministries in order to achieve financial stability, before increasing spending again.