Defense Budget

The Honduran National Congress has little say in determining how the armed forces spends the defense budget. Congress approves a single lump-sum amount, with little debate or itemization and no oversight. The chief of the armed forces has the authority to make all final spending decisions for the military.

During the 1980s, increases in the defense budget were fueled by military assistance from the United States in the form of Foreign Military Sales (FMS), the Military Assistance Program (MAP), and the International Military Education Training (IMET) program (see United States Military Assistance and Training , this ch.). Between 1983 and 1989, these programs provided Honduras with a yearly average of US$47.59 million in military assistance. The advent of peace in Central America led to a sharp drop in military assistance after 1991--down from US$33.5 in 1991 to US$16.3 million in 1992, and to only US$2.7 million in 1993. The rise in foreign assistance and subsequent dramatic reductions had a corresponding effect on Honduran military expenditures.

Honduran military spending averaged US$72.4 million a year between 1982 and 1988, reaching a peak of US$126 million in 1989. Later, during 1992 and 1993, the official defense budgets averaged only US$44.2 million. At the beginning of the 1994 government budget process, it appeared likely that military expenditures would drop further. The sharp decline in spending has led to significant reductions in the size and capabilities of the armed forces (see The Armed Forces , this ch.).

Data as of December 1993