The Australian Strategic Policy Institute's latest publication 'The big squeeze - ASPI Defence budget brief 2023-2024' reveals the recent federal budget leaves Defence with less core funding for the next three years than was available to it for the same period in the March 2022 budget.
The only increase was compensation for higher costs for imported military equipment due to a fall in the Australian dollar, with Defence’s core funding reduced by $1.5 billion over the next three years.
The tightened conditions underscore the challenge the government faces in growing the defence budget–as it has undertaken to do beyond the forward estimates period–at a time of global economic hazard, with rampant inflation and post-COVID debt putting pressure on budgets worldwide.
In this video, ASPI's Deputy Director of Defence, Jennifer Parker, and economics writer and author, David Uren, breakdown the key takeaways from the report.
