Azerbaijan's defence budget will increase by 3.1% in 2015, pointing to a broadly static funding settlement in real terms.

The nominal increase from a budget of AZN2.95 billion (USD3.75 billion) in 2014 was outlined in the country's draft government budget that was released by the Ministry of Finance on 13 October.

Military expenditure will account for 17.9% of the total government budget; up from 14.7% in 2014.

The 3.1% funding rise means defence investment will keep up with inflation, which hovers between 3% and 4%.

Core defence spending - excluding what Azerbaijan usually describes as "Special Defence Projects" - was set at AZN1.78 billion; up 8% from AZN1.64 billion in 2014.

Bakudaily.Az