Most of the additional defense spending will be used for procuring munitions and communication systems, the construction of a new base and on modernization of existing military hardware, the deputy defense minister said on September 8.

Parliamentary committees began on September 8 consideration of the government’s proposal to increase the 2007 state budget by GEL 430 million (almost USD 259 million), instead of the initially proposed increase of GEL 450 million.

The proposal, which has to be approved by Parliament before September 25, will mean total state expenditure for 2007 of over GEL 5 billion (about USD 3 billion). The first hearing on the draft amendments to the state budget in the parliament is planned for September 14.

The lion’s share of extra funds, GEL 315.8 million (about USD 190 million), initially set at GEL 320 million, will be allocated to the Ministry of Defense.

As a result, total defense spending for 2007 will amount to GEL 1.271 billion (approximately USD 765 million).

This will mean that total defense spending will amount to 22% of entire state expenditure for 2007 and to more than 7% of the country’s GDP, which is expected by the government to be USD 10 billion this year.

Speaking at a hearing of the parliamentary committee for defense and security, Vera Dzneladze, the deputy defense minister, said that the construction of a new military base in Khoni in the western region of Imereti, was planned with the extra funding.

She said 3,500 servicemen from the 5th Brigade of the Armed Forces, will be deployed to the new base.

She pointed out that additional funds would also be used to purchase weaponry, ammunition and communication systems, as well as to modernize vessels, aircraft and other existing military hardware.

Information on military procurements is classified, much to the chagrin of the opposition. President Saakashvili, however, said on August 10 that Georgia planned to procure fighter aircraft “to patrol our airspace.”

The statement was made four days after Georgia alleged that a Russian SU-24 aircraft had violated Georgian airspace and dropped an anti-radar rocket near the South Ossetian conflict zone. Georgia currently possesses SU-25 Frogfoot aircraft, which are designed to attack ground targets.

The Czech deputy defense minister, Martin Bartak, said in May 2007, after visiting Georgia, that his country was in talks over a possible deal with Georgia to sell at least ten L-159 advanced light combat aircraft. It, however, remains unclear whether or not the deal has been finalized.

Last year Georgia reportedly purchased an OSA self-propelled anti-aircraft system with missiles, as well as 60 AGS-17 automatic grenade launchers and 20,000 Kalashnikov AK-47 and AKM assault rifles from Ukraine.

Some of the additional funds, Deputy Defense Minister Vera Dzneladze said would also go for the reconstruction of the Kopitnari airport in Kutaisi, in the Imereti region, and for the construction of apartment buildings for army officers in Gori and Tbilisi.

The creation of a blood bank in a newly constructed military hospital in Gori is also planned, she said, which would be available both for military and civilians.

Increased funding for the reservist training programmes and for Georgia’s increased contribution to Iraqi operations is also planned, the deputy defense minister said. Georgia increased its presence in Iraq from 850 to 2,000 this summer. President Saakashvili said recently that the country planned to have at least a 100,000-strong reserve force.

Another major beneficiary of the increased state expenditure will be the Interior Ministry, which will receive an additional GEL 51 million (about USD 30.7 million), out of which GEL 11.5 million (about USD 6.9 million) will be allocated to the Border Police and GEL 125,000 (USD 75,300) to the counter-intelligence department.

This will be the second major amendment to the state budget in less than four months. Parliament approved an earlier increase in state spending of almost GEL 600 million on June 8. The MoD was also the major beneficiary then, receiving an additional GEL 442 million.