The Clone economy is in trouble, that much we all know. What is less clear is what the Clones are going to do about it. Recent leaks have indicated that massive cuts in budgets will be needed to rein in the budget deficit, one figure that seems to be gaining favour is a 10% cut in department budgets across the board followed by zero growth for the next 5 years. This cut and budget freeze would apply to the defence budget.
So the HCS could be facing a big cut in its budget followed by 5 years of no-growth, in other words the HCS will have to make do with 90% of their current budget for the next 6 years. This seems harsh but it must be remembered that the budget has been increasing for years, indeed the cuts will mean the budget is reduced down to the level in 2107, not exactly the end of the empire then.
But the cuts required will be hard and there is a lot of debate as to what will be cut. Collating these various sources i think we can be fairly certain on the following taking place.
- The HCS will lose around 35 regiments, all 4 regiment brigades will be reduced to 3 regiment strength (the majority). Most cuts will be infantry regiments. Artillery will not be cut as it has only recently been invested in.
- The withdrawal of the T-88 will be accelerated and new build like T-55ZDM2 reduced to minimum rate. The stock of AFVs in storage is likely to be further reduced thus lessening the HCS' ability to rotate AFVs.
- The F-40 may end service at the end of this decade and not the next, the F-45C programme is safe (development has been paid for now) but production may be slower. A-84 and 85 production is likely to be also slowed down. The F-47 might be reduced, especially if the HCSAF decides it has to cut combat squadrons.
- Older transport types already scheduled for retirement may go quicker, the HCSAF might seek to increase commercial company involvement in air transport tasks.
- The HCSN's future carriers will be either pushed back until the mid-2120s or canceled outright. The Austini 55 carrier might be instead given to Cloneworld. Surface warship production may be cut, no ships are likely to be withdrawn.
- The submarine fleet is likely to be unchanged, and CSM/SeaGale development will probably be left unchanged. CSM is partly funded outside of the military budget.
- The Space Navy could emerge unscathed though updates may be reduced. The Space Navy might look to see if there is scope in replacing manned ships with more drones.
- The Amphibious Warfare fleet will be untouched though older transports might be withdrawn quicker due to their more expensive maintenance needs.
- Big investment projects like the communications upgrade will be looked at though there probably arn't many things that can be done there (indeed the upgrade has been delayed for too long).
- New projects like an effort to build a credible cyber-warfare capability will be reduced or even canceled outright.
- Training and maintenance is likely to be reduced.
So the HCS will be facing reductions, luckily some big development projects like F-45C and CSM have already been paid for (though costs will remain especially in the production phase). Details about what will happen will be dribbled out later in the year. The HCS that remains will still remain an incredibly powerful arm with almost unrivaled full-spectrum capabilities but later in the decade the effect on the reduction in training, upgrades and new build will start to be keenly felt.
