The Armed Forces of the Czech Republic (CR) is underfunded, struggling to keep its capability and credibility. The CR defence budget presently stands at CZK42 billion (€1.32 billion) or 1.08% of the GDP. In 2011, the share of the defence budget allocated to capital investments was 13%. The situation has not changed for the better in 2012. Within its efforts to save money, the MoD plans to reduce the number of commanders and decrease the number of the civilian and military personnel. As part of savings of about CZK500 million, the MoD transformed the Armaments Division of the MoD into the National Armaments Office.
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