The South African government has allocated ZAR34.01 billion (USD4.77 billion) to defence for 2011-12 - an increase of 10.87 per cent over a year earlier, according to figures released on 23 February. The additional funds will be absorbed by a new salary structure, although the planned budget for the next two years should provide for re-equipment projects. However, army funds will be substantially limited by the need to repay the ZAR1.8 billion taken from its capital account in late 2010 to fund the salary increases. This has resulted in an allocation for new equipment that is lower than planned for a year ago, producing a major disruption in already-delayed equipment planning.
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