The Netherlands defense budget allocation of US$10.1 billion in 2013

The Netherlands is one of the top 20 defense markets across the world, with a defense budget allocation of US$10.1 billion in 2013. Primarily driven by military modernization programs, and coast guard and internal security the country’s defense expenditure is expected to register a CAGR of -0.31% during the period 2014-18. This decrease in spending is expected to be primarily due to the European debt crisis, which will force the Netherlands to cut its defense budget over the forecast period. The country’s defense imports and exports recovered in 2012 and are expected to grow over the forecast period, as the country is expected focus on acquiring equipment for maritime security, C2/C4ISR, and homeland security infrastructure.Defense expenditure in the Netherlands is primarily driven by military modernization, joint operations with the police force for the internal security of the country. Military Modernization: Participation of the country’s armed forces in peacekeeping initiatives affected the functionality of its defense equipment, especially the condition of the equipment deployed in Afghanistan, such as F-16s, armored vehicles, and helicopters. This has necessitated the need for upgrade or replacement. The MOD has already outlined plans to upgrade its helicopter and armored vehicles fleets, and F-16 fighter aircraft. The maritime forces are also being equipped with minesweeping capabilities, while frigates are being upgraded with radar systems.
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