2010 Military Spending Increase
The Veche and the Council of Nations have recently approved an addendum to the Fiscal 2010 Budget allowing a 58% increase to military spending allowing for the modernization of the armed forces.
This plan would increase total spending to 140 billion marks (30 billion USD), up 52.6 billion marks from last year. Most of this money is to be directed toward replacing aging equipment, particularly in the navy and air force. Although exact amounts are not yet decided, this increased spending is likely to continue for several years.
Increasing tensions in the Middle East and elsewhere have caused concern in the Novegradian government for the security of the nation and its allies and for Novegradian citizens worldwide. The unexpected mid-flight failure of an Le-04 Fighter last October that forced it into an emergency landing in the Mediterranean Sea near Crete has helped to expedite the passage of this bill.
A large portion of this year's as well as coming years' funds are directed toward the refurbishing of the Northern Fleet. Construction of a new Cernovolk-class aircraft carrier has already begun in Śěveromorijá with plans for a second and a Riga-class nuclear submarine in Onéźeske. Both of these designs are the most modern designs available to the Novegradian military. An undisclosed number of new Le-11 fighters have been ordered as well.
Which ships and planes are to be decommissioned has yet to be announced. India and South Korea have both agreed to purchase several destroyers and Le-06 fighters.
An additional 52 billion marks (11 billion USD) has been set aside to be distributed over the next three years for renovating and modernizing naval bases in Murmáne, Arhánjeiske, Ríga, and Libáva.
Minister of Defense Konstantíne Vladínovice Moskóvine has said that the number of active military personnel is not expected to increase significantly over the next few years barring unforeseen circumstances.