Expenditure on national security is currently estimated at $33.2 billion in 2010-11, consisting of $26.7 billion on defence and $6.5 billion on non-defence national security. Over the period 2001 02 to 2010-11 whole-of-government expenditure on national security has grown from $21.0 billion to $33.2 billion, an annualised real growth rate of 5.2 per cent.
There are currently two key issues in the national security domain:
The Coordinated National Security Budget identifies and prioritises all national security New Policy Proposals (NPPs). In the 2010-11 Budget, the National Security Adviser (NSA) prepared the inaugural Coordinated National Security Budget with the aim of guiding and coordinating effort across the national security community. The Coordinated Budget identified and prioritised all national security NPPs; and
The Government announced an Independent Review of the Australian Intelligence Community (the Review) in the 2010-11 Budget. The Department of the Prime Minister and Cabinet is currently preparing a Memorandum for National Security Committee (NSC) consideration, which will outline the draft Terms of Reference. The Review is expected to examine the roles and functions of the Australian Intelligence Community (AIC) and will report by the end of 2011. The appointment of the lead reviewer has not yet been finalised.
Reason for Importance:
The Coordinated Budget process successfully aligned all new spending with the Government’s priorities, **one and a half lines of text has been redacted** . National security expenditure (excluding Defence operations) increased by 2.1 per cent in real terms in 2010-11.
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Action required in 2010:
Consider supporting the continuation of the Coordinated Budget process as it is a potentially effective mechanism to optimise expenditure on national security; and note that there are likely to be refinements to the process being considered by the NSA.