A Ministry of Defence spokesman said the underspend reflected better control of equipment projects and a conscious decision not to spend money on contracts until needed.
Rather than rushing money out of the door for the sake of it within a financial year, we are committing money as and when projects require it.
We make no apologies for having a proper grip on the equipment plan and running a tight ship with a cautious approach that, with the support of the Treasury, allows us to roll forward cash to next year, thereby ensuring the money will still be spent on equipment.
More top news
A mother and daughter have been rescued after four days in the New Zealand bush, after their 'HELP' sign was spotted by a helicopter.
A group of hooded youths have clashed with police in Paris at a May Day rally against proposed labour reforms.
Tonight a band of cloud and rain will spread into Scotland and Northern Ireland before reaching all parts of the country tomorrow.