article_snippet: With deep cuts to Whitehall budgets to continue after May's general election, Chancellor George Osborne is reported to have warned privately that it may fall below that level.
article_snippet: The most senior civil servant at the Ministry of Defence said that on current forecasts, GDP growth was expected to outstrip the growth in the defence budget, so that GDP growth would drop below 2% at some point in the next parliament.
article_snippet: The most senior civil servant at the Ministry of Defence warned that further cuts in spending could ultimately affect the capability levels of the armed forces. '
article_snippet: further cuts in spending could ultimately affect the capability levels of the armed forces rather depends on how deep the cut is and how much further financial efficiency we can drive.
article_snippet: If it were to be more than the level of financial efficiency we can drive, then yes, it will impact on capability,' The most senior civil servant at the Ministry of Defence said.