Croatia

Croatia’s Defence Budget has experienced a significant reduction in nominal values in the last few years. This drop is also reflected in the percentual GDP allocation to Defence. In 2015, the Defence Budget reached some HRK 4.6 billion, corresponding to 1.37% of the GDP. Furthermore, forecasts indicated an increased portion of the defence budget to be allocated for the next couple of years (2017 – confirmed by the release of the 2017 Procurement Plan by the MoD-, and 2018), for procuring equipment and modernising the Croatian Armed Forces, as far as for example the continuation of the acquisition and overhaul of self-propelled PzH 2000 Howitzers, the procurement of OH-58D Kiowa Warrior helicopters, the overhaul of Mi-171Sh helicopters, and the M-84 tanks upgrade.

At the moment (2014 data), 18,841 people (see table below) are employed by the Croatian Armed Forces (CAF)  that consists of the Army, Air Force and Air Defence and the Navy. Their mission is the defence of the Republic of Croatia and its allies, the contribution to international security and the provision of support to civil institutions.

 

CAF

Croatian MoD

Beyond MoD & CAF

TOTAL

Active Duty Military Personnel

15,358

346

5

15,709

Civil Employees

2,092

1,040

0

3,132

TOTAL

17,450

1,386

5

18,841

However, reductions of personnel have been planned, with a target of 15,000 (Active Duty military personnel and Civil employees) having been set for the end of 2017 (in addition to some 400 cadets). At the end of 2020, associated plans aim for a 1:3 to 1:5 ratio of NCO (Non-Commissioned Officers) and Soldiers with respect to the sum of the Armed Forces.

Croatia’s Defence Budget has experienced a significant reduction in nominal values in the last few years. This drop is also reflected in the percentual GDP allocation to Defence. In 2015, the Defence Budget reached some HRK 4.6 billion, corresponding to 1.37% of the GDP.

Furthermore, forecasts indicated an increased portion of the defence budget to be allocated for the next couple of years (2017 – confirmed by the release of the 2017 Procurement Plan by the MoD-, and 2018), for procuring equipment and modernising the Croatian Armed Forces, as far as for example the continuation of the acquisition and overhaul of self-propelled PzH 2000 Howitzers, the procurement of OH-58D Kiowa Warrior helicopters, the overhaul of Mi-171Sh helicopters, and the M-84 tanks upgrade.

Despite the latter, significant cuts had been introduced with regards to the acquisition of military equipment, in the 2016 budget, with respect to the respective 2015 figures. More specifically, the 2016 Defence Budget was reduced by some HRK 390 million (compared to that of 2015), while the Ministry of Interior on the other hand was allocated approximately an additional HRK 310 million, in light of the refugee crisis, however in contradiction to the active role the Army is expected to play in the provision of border security.

As an indication of the typical breakdown of the defence spending for the country, the 2015 budget was allocated as described in the chart below:

According to the MoD’s 2015-2024 Long Term Development Plan, Croatian defence expenditure was to be preserved to the 2014 levels of 1.3% of the GDP, up to 2017.

According to this Long Term Development Plan, the aim is by 2024, that 43% of the budget be allocated to Personnel, 33% to Operational costs, 21% to Equipment Procurement and Construction costs, and 3% to International missions.

To make this possible, Personnel costs will be significantly reduced (when compared to 2014 expenditure as the baseline), as a result of the downsizing of the total number of personnel of the Armed Forces, as well as due to the reductions in expenditure for MoD personnel.

According to the Croatian Forces Long-Term Development Plan (2015-2024), the priority of the Croatian Army is the modernisation and equipping of the key ‘mobile’ Air Defence units (MANPADS) of the Armed Forces. Till 2020, priority will also be given to equipping the Mechanised Guard Brigade, as part of the country’s contribution to the NATO capability targets. In addition, from 2021-2024 and onwards, projects of modernisation and equipping of the Guards Armoured - Mechanised Brigade will be initiated, as critical to retaining and enhancing associated capabilities. Finally, equipping of the CAF Active Duty personnel which will be engaged as part of the NATO Pool of Forces, with machine guns and universal machine guns of NATO calibre, is aimed to be completed by 2024.

Also, further procurements for equipping troops within the planned period, will include camouflage uniforms, combat boots and helmets, combat modular vests, backpacks and individual night vision devices. Units declared to EU and NATO, will be by priority equipped with upgraded systems of performance, protection and communication, offering the ability to operate under extreme weather conditions.

Overall, the CAF has planned a series of armament modernization programmes for its artillery and armoured units, to be carried out over the period 2015-2024, such as:

  • A total of 48 tanks will be retained in operational use by the Armed Forces, following a revision process and of which, one (1) Tank Company will be further modernized.
  • The APC Patria vehicles will continue to be equipped and phased into operation with additional weapons and military systems (e.g. anti-armor system, remote weapon station of 30 mm, communication equipment).
  • BVP M-80 infantry combat vehicle will continue to be maintained and modernized including through the integration of new anti-armour systems.
  • Equipping vehicles with new mobile anti-armor system capabilities (other than the APC Patria, possibly by upgrading the currently installed systems, or by employing improved capability projectiles).

Regarding the Navy, for the period 2015-2024, the following main projects/programs will be carried out:

  • Acquiring a total of 5 Coastal Patrol Boats, by 2017 (to be built by Brodosplit Shipyard).
  • Acquiring a used Offshore Patrol Vessel (OPV).
  • Equipping vessels with Anti-Ship Missile Systems (RBS-15B, following testing and the prolonging of service life).

Regarding the Air Force and Air Defence, for the period 2015-2024, the following main projects/programs will be carried out:

  • To equip an Air Defense Battery with systems of mid-range.

In the last decade, Croatia has imported about US $237 million of arms equipment. The majority of it comprised of Aircraft and Armoured vehicles.

The aforementioned equipment was mostly exported to Croatia, by Finland (34%), Russia (28.6%) and Ukraine (17.2%), for the given period.