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Defence spending is likely to play a larger role than previous years in the 2023 Federal Budget, according to Treasurer Jim Chalmers.
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The Federal Budget is traditionally released to Parliament by the Treasurer in the second week of May each year. An interim Federal Budget was delivered by the Albanese Government on October 25 last year.
“Already in the Budget I handed down in October there was something like a 13 per cent increase in defence spending over the forward estimates, and I think from something like $49 billion to $56‑$57 billion dollars in the defence budget,” Mr Chalmers said in a public statement on January 22.
“That is before we factor in the Government's coming decision on submarines and the Defence Strategic Review, and so we expect defence spending in the budget to grow very strongly.
“The numbers will be presented in the May Budget if we can, but already we're spending two per cent of GDP. Already that's rising substantially.
“It's one of the fastest growing areas of spending in the budget. We need to make sure that we can find room for what is this necessary investment in our national security.”
The Australian defence budget has previously reached $48.6 billion or 2.11 per cent of GDP for the 2022-23 financial year; raised from $44.6 billion in the 2021-22 period.
Defence spending will be impacted by the Defence Strategic Review and significant existing contracts for maritime, aviation and land-based equipment. Australia has committed to the acquisition of Black Hawk helicopters and is in international discussions regarding its AUKUS agreement.
