More of Britain's Armed Forces personnel, aircraft and warships could be cut because of a new multi-billion pound black hole uncovered in the defence budget.
Ministry of Defence officials have calculated the department is at least £10 billion (Dh58.62 billion) short of what it will need in the coming years.
The financial "mismatch" is larger than all the defence cuts announced in last year's Strategic Defence and Security Review, and has raised fear of further reductions.
The MoD's budget, £33.8 billion this year, is being cut by 8 per cent over four years. The department has concluded those cuts will still not balance the budget, meaning unless the Treasury increases spending, more cuts will be required.
The shortfall concerns the MoD's budget from 2015, but sources said that without a promise of more money now, ministers will soon have to start cutting and cancelling programmes due to be delivered later.
"We are quite close to the point where this will force us to make new cuts," said a senior defence source.
The shortfall emerged in an internal review of the MoD's finances.
The study is due to conclude this week, but the precise level of the shortfall the subject of haggling between Whitehall departments.
From / Gulf News