Chapter ยท 11:26-12:48

Who owns the Ministry of Defence budget gap?

The Ministry of Defence is blamed for commitments exceeding its budget even though government and Treasury approve both the commitments and allocation.

Notes

The Ministry of Defence receives both its obligations and its spending allocation from the wider government. Major spending commitments receive Treasury and cabinet sign-off, while those same institutions authorize the budget. The resulting affordability gap cannot reasonably be assigned to the department alone. A car-dealership analogy shows the contradiction: government agrees to buy a capability at one price while knowingly allocating less money than the agreement requires.