Chapter 1 - Finance
                       
Table 1.18 MOD Operations and Peacekeeping Costs1
This table shows a breakdown of the actual net operating and capital costs for the three main operations currently undertaken by the MOD. These costs cover the net additional costs (both direct and indirect) incurred by the Department as a result of major military operations: that is, those costs over and above those that the Department would have incurred had the operation not been undertaken. For example, expenditure on wages and salaries or savings from cancelled training exercises are deducted from the total cost of the operation.
Inclusive of non-recoverable VAT at Current Prices (£ million)
  Iraq   Afghanistan   Balkans
  2006/07 2007/08 2008/09   2006/07 2007/08 2008/09   2006/07 2007/08 2008/09
Total by Operation 956 1 457 1 381   738 1 504 2 623   56 26 22
                       
Total Operating Costs 787 1 055 1 124   560 1 071 1 655   55 26 22
of which:                      
                       
Direct Costs:                      
                       
Service Manpower 100 98 115   49 85 73   11 2 2
Civilian Manpower 15 14 21   4 9 15   5 2 1
Infrastructure costs 83 130 133   101 149 162   13 8 5
Equipment support 206 278 306   112 200 384   6 1 -
Other costs and services 137 162 153   89 160 312   14 7 9
Income2 5 4 -   (2) 11 (24)   (10) (1) (2)
Stock consumption 218 237 207   164 301 527   15 6 6
                       
Indirect Costs:                      
                       
Stock write off / (write-on) - - 1   - 4 -   - - -
Provisions 6 5 -   - - -   1 (1) -
Depreciation, amortisation (including UOR3) and fixed asset write-off 14 119 164   39 143 187   - - -
Cost of capital 3 8 24   2 9 18   - - -
                       
Total Capital Costs 169 403 257   178 433 968   1 - -
Of which:                      
                       
Capital Costs (by area)                      
Capital addition (including UOR's and Recuperation) 169 403 257   178 433 968   1 - -
                       
Source: MOD Annual Report & Accounts
1. Excludes programme expenditure grouped in either the African or Global pools.
2. Positive figures on the income line represent the cost of income foregone i.e. loss of receipts as a result of conducting operations (e.g. food and     accommodation receipts in respect of deployed personnel). Negative figures (shown in brackets) on the income line represent income generated on     operations (e.g. support to other nations in respect of catering and medical services).
3. UOR = Urgent Operational Requirements