Paraguay - Military Spending

Paraguay spent US$53 million on defense in 2004, approximately 1 percent of the country’s gross domestic product.

Military infrastructure and equipment is old, obsolete and in desperate need of repair/replacement. Paraguay's defense budget for 2005 represents approximately 1.7 percent of the national budget or USD 59M, an USD 8M increase over 2004. Ninety percent of the budget is used to pay salaries and 5 percent is used for sustaining conscripts, leaving only 5 percent for operations, maintenance and training. Budget problems are not expected to go away in the near future due to lack of strong support in congress and lingering memories of Paraguay's 35-year dictatorship among some politicians. Also, the military is continuously beset by public scandals including the 04 July 2005 arrest of an active duty AF Colonel for flying smuggled cigarettes into Argentina.