THE SANDF budget has been cut by about 40% over the past nine years from 4,5% of gross domestic product to under 1,5% at present. Navy chief, Vice Admiral Robert Simpson-Anderson, said the SANDF did not demobilise after the Angolan war and it is now imperative to establish a smaller, sleeker and cheaper defence force. Personnel has been cut from 113000 to its present 87000. This total takes up 57% of the defence budget and must be brought down to the internationally accepted level of between 35% and 40%. Simpson-Anderson said only 12% of the budget was being spent on capital replacement instead of about 30%. An ideal analysis should be 40% on personnel, 30% on operating costs and 30% on capital replacement.