Defence Expenditure and Procurement
The F-FDTL's budget for 2012 is $US26.6 million. This is an increase in nominal terms from the previous year's budget of $US21.5 million, which was equivalent to three percent of GDP. The Ministry of Defence and Security and Secretariat of State for Defence are funded separately from the F-FDTL, and were allocated $US8.9 million and $US2.2 million respectively in 2012.
Most of the F-FDTL's weapons and other equipment have been provided by foreign donors, and this is likely to remain the case in the future. The East Timor government has used some of the revenue it earns from the country's oil and gas sector to purchase military equipment, however. No military production currently takes place in East Timor.
Funding shortfalls have constrained the development of the F-FDTL. The government has been forced to postpone plans to form an independent company stationed in the Oecussi enclave and two reserve infantry battalions. These units formed an important part of the King's College report's option 3 force structure and their absence may have impacted on East Timor's defence policy. As of 2011 the government was yet to announce what, if any, reserve units would be formed, though provisions for such units had been included in legislation.
Read more about this topic: Military Of East Timor
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