The annual payment for the strategic arms package drops this year - from R6,33bn to R4,54bn - for the first time since 2000/2001, when SA started paying off the multibillion-rand package of jets, helicopters, submarines and frigate warships. This will free up more than R1,8bn, which will go mostly to equipment for the long-neglected army.
At the current rand exchange rate the arms package amounts to R44,79bn, and the payments will continue to decrease until the final tranche in 2011/2012.
Meanwhile, the defence department continues to labour under a policy doctrine that is out of touch with its more practical, peace-keeping mandate.
These are the most striking facts to note regarding this year's defence budget of R23,83bn - a nominal rise of scarcely 1,3% over last year's amount. But if one factors in the declining arms deal commitment, the military have 9% more to spend.
The most critical needs of the defence force are to improve the health and fitness of members, reduce their average age, and replace ageing and obsolete equipment such as troop carriers and air transport aircraft.
The defence force's voluntary skills development system, designed to recruit young soldiers and augment the reserve forces, has raised intakes from an initial 1 817 in 2003 to more than 4 300 in January this year. An additional R600m is allocated for developing skills.
Meanwhile, the defence force's inability to finalise agreement on an affordable pension scheme, especially for ageing ex-guerrillas from the former liberation forces, has impeded the top brass's efforts to reduce the numbers of indigent and sickly soldiers.
The main budget document, Estimates of national expenditure, acknowledges that global developments and domestic legislative changes make it necessary to update SA's primary defence policy. It says the 1996 white paper on defence and the 1998 defence review, the road maps of policy, should be completely revised before the end of the year.
"For some time now there has been this discrepancy between funding and policy," says retired general Len le Roux, military analyst for the Institute for Strategic Studies. "The de facto policy demands a greater budget than the department is getting. That's why we see problems such as nonreadiness, poor maintenance of equipment and deterioration of facilities."
One positive element in this year's budget, he says, is the increased allocation to the army - mainly for young recruits and updated vehicles - reflected in a 35,9% increase in support capability and a 51,6% increase in goods and services.
