The Supplementary Estimates are the vehicle by which the Government requests extra resources from Parliament in excess of the amounts requested in the Main Estimates. The purpose of this Report is to highlight some features of particular interest such as the use of Budget Exchange and the cost of operations. It is standard practice for Estimates Memoranda to be signed off by the relevant Director General Finance on behalf of the Department's Accounting Officer and it is recommended that, in future, the MoD adopt this practice. The Committee welcomes the availability of Budget Exchange and will continue to monitor its future use by the MoD. The fall in the costs of operations in Afghanistan reflecting a reduced involvement in combat operations is also welcomed. However the closer we get to final withdrawal the riskier the circumstances in which UK Forces will be operating. The MoD should not withdraw equipment early or reduce costs to the extent that would put the lives of UK Armed Forces personnel at risk or that would leave them living or operating in circumstances which place them at unnecessary risk. It is recognised that Annually Managed Expenditure is, by its nature, difficult to predict accurately but as experience increases and the pattern of voluntary outflow stabilises, the MoD should become better at estimating costs, income and liabilities. The MoD should set a target to keep any additional requests in the 2013-14 Supplementary Estimate for the Armed Forces Retired Pay, Pensions etc to below five per cent of that requested at the time of the Main Estimate

Government response to HC 291, session 2013-14 (ISBN 9780215058942)