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Mexico's 2008 defence budget goes under review
In a bid to boost defence procurement, Mexico's two defence secretariats - SEDENA (Army/Air Force) and SEMAR (Navy) - have submitted their Fiscal Year 2008 (FY08) budgets for Congressional approval.
SEDENA is requesting MXN34.7 billion (USD3.2 billion) and SEMAR is requesting MXN13.4 billion (USD1.2 billion), bringing the total official defence budget to around USD4.4 billion. That figure could rise above USD5 billion if additional unfunded requests are met. Likewise, that budget does not take into account the USD500 million to be offered by the US government as part of the Merida Initiative assistance package. Only about USD204 million of that, however, would be earmarked for the military.
Programme and budget documents revealed new initiatives and procurements. SEDENA is planning to spend some USD530 million over the next four years on procurement, with about USD135 million programmed for FY08. This would include a USD172 million contract with Harris Corp for the acquisition of Falcon II-series HF radios, deliveries and payments of which are to extend until 2010. One significant project for Mexico's land forces is a USD43 million contract with German small-arms manufacturer Heckler & Koch for production of the 5.56 mm G36V assault rifle in Mexico.
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© 2007 Jane's Information Group
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