Tuesday, 28 June 2016

GLOBAL DEFENSE SPENDING REMAIN MODERATE SINCE 2008: DELOITTE REPORT


Global commitments to defense have moderated, as economic development reduces dependence on defense spending, according to Deloitte’s global Public Sector Defense practices’ report entitled 2016 Global Defense Outlook. According to the report, Pakistan, India, Iraq and Russia maintain the world’s highest commitments to defense, as measured by Deloitte’s Defense Posture Index - a numerical
ranking of national-level commitments to defense. Deloitte’s Defense Posture Index also reveals that only nine of the fifty largest defense–spending nations raised their commitments to defense over the past five years. Only one of these is in Europe (France); the other eight are in Africa, Asia-Pacific and the Middle East. “Only nine of the fifty largest defense spenders have raised their defense posture since 2008. One of these is in Europe; the other eight are in Africa, Asia-Pacific and the Middle East,” says Jack Midgley, Asia Pacific Region Public Sector Defense leader for Deloitte Global. “Some 41 countries, including the United States, Russia and China have held the line, or lowered their overall commitment to defense. Pakistan, India, Iraq and Russia maintain the highest defense postures, while Belgium, Canada, Argentina and Germany display the lowest ones among the Top 50 defense spending nations.”

As per the report, the combined annual defense budget of the 50 largest defense spenders is projected to remain flat at about US$1.6 trillion through 2020. Twelve of the Top 50 nations are projected to reduce annual defense budgets by a total of $44B, paced by the projected US reduction of US$38B.

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