US embassy cable - 04BOGOTA11331

UNCLAS SECTION 01 OF 02 BOGOTA 011331 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, PGOV, MASS, SNAR, PINR, MCAP, PTER, ECON, CO 
SUBJECT: SEVEN PERCENT INCREASE IN 2005 DEFENSE BUDGET 
 
REF: BOGOTA 6598 
 
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Summary 
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1. (U) The GOC's 2005 central defense budget is 9.2 trillion 
pesos, an approximately seven percent increase over 2004 
(reftel).  Defense spending has grown over 50 percent since 
2001.  The 2005 increase will fund over 16,000 new uniformed 
police and military, including three Army mobile brigades, 
one Army high mountain battalion, 5,000 rural police 
officers, eight mobile police squadrons, 158 additional 
hometown soldier platoons, and 969 marines.  Despite the 
steady increase in defense spending since Uribe took office, 
spending on social services as a percentage of the national 
budget has not fallen.  Social Protection and Education 
programs continue to receive more resources than the central 
defense budget.  End Summary. 
 
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Defense Spending Increased Again 
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2. (U) In late October, the Colombian Congress approved the 
GOC's 2005 national budget, which includes 9.2 trillion pesos 
for defense, a 7.1 percent increase -- 610 billion pesos -- 
over 2004 spending.  The additional funds will finance 
personnel growth and compensate for increases in routine 
expenses.  Because GOC budget practices differ from those in 
the U.S., the figures below should be considered in the 
context of the text before drawing conclusions. 
 
3. (U) Since 2001, Colombian central defense budgets have 
been: 
 
2001: 6.0 trillion pesos 
2002: 6.69 trillion pesos 
2003: 8.117 trillion pesos 
2004: 8.59 trillion pesos 
2005: 9.20 trillion pesos (projected and approved by Congress) 
2006: 8.86 trillion pesos (projected as of July 2004, but 
probably an underestimation) 
 
4. (U) The central defense budget covers salaries; the 
operating costs for each service, the joint staff, and the 
Defense Ministry; pensions for a small number of civilian 
employees; health care services; and investments, including 
heavy equipment and training.  The central budget does not 
include most non-operational ("decentralized") expenses, such 
as pensions for uniformed staff and the security forces' 
private sector ventures, including the Tequendama Hotel and 
Business Center and Satena Airlines.  This "decentralized" 
budget is 2.64 trillion pesos for 2005. 
 
5. (U) The 2005 central defense budget can be broken down as 
follows: 
 
General Management (includes Defense Ministry): 623.34 
billion pesos 
Joint Staff: 38.86 billion pesos 
Army: 3.42 trillion pesos 
Navy: 664.17 billion pesos 
Air Force: 690.21 billion pesos 
Police: 3.07 trillion pesos 
Health Care: 686.55 billion pesos 
Miscellaneous: 12.5 billion pesos 
 
6. (U) Alternatively, it can be broken down in the following 
manner: 
 
Military and Ministry Operational Expenses: 5.16 trillion 
pesos 
Military and Ministry Investment: 655.48 billion pesos 
Police Operational Expenses: 3.29 trillion pesos 
Police Investment: 102.6 billion pesos (this is the only 
figure that has decreased from 2004.  Investment in 2004 was 
112 billion pesos). 
 
7. (U) By December 2005, the GOC plans to increase the 
security forces by 16,345 men, bringing the total to 374,125 
uniformed police and military.  Before Uribe took office in 
July 2002, the police and military totaled 278,796.  If all 
increases projected for 2005 take place as planned, the 
security forces will have increased by 34 percent, or almost 
100,000 members, during Uribe's first three and a half years 
in office.  The 2005 increases will be: 
 
-- Three Army mobile brigades (total: 15) 
-- One Army high mountain battalion (total: seven) 
-- 5,000 rural police officers (Carabineros) (total: 20,000) 
-- Eight mobile police squadrons (EMCAR) (total: 54 squadrons) 
-- 158 hometown soldier platoons (total: 27,006 hometown 
soldiers 
   in 754 municipalities) 
-- 969 marines (total: 4,355) 
 
8. (U) Projected increases in 2006 are: 
 
-- Three Army mobile brigades 
-- One Army high mountain battalion 
-- 5,700 hometown soldiers 
-- 500 marines 
9. (U) Increased defense spending has not displaced spending 
on social services.  The total national budget (excluding 
service on the national debt) in 2005 is 59.657 trillion 
pesos, a 19.6 percent increase over 2004's 49.876 trillion 
peso budget.  Defense spending represents 15.4 percent of the 
national budget, down from 16.3 percent in 2004.  It is the 
nation's third largest budget expense.  Key program budgets 
are as follows, according to the Finance Ministry: 
 
Social Protection: 22.4 trillion pesos 
Education: 10.6 trillion pesos 
Central Defense Budget: 9.2 trillion pesos 
Public Health: 7.4 trillion pesos 
 
 
WOOD