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  • Analysis Based Forecast of Revised Estimates of Defence Budget 2015-16: Who Bails Out Whom?

    Analysis Based Forecast of Revised Estimates of Defence Budget 2015-16: Who Bails Out Whom?

    Sustaining and building defence capabilty is a continuous process. It requires both adequate budget allocations and full, efficient and judicous utilisation of the allocated budget. This does not appear to have happened in the immediate past and the trend appears to continue in the current year.

    February 23, 2016

    Restoration of Inherent Financial Powers of Defence Services

    Restoration of Inherent Financial Powers of Defence Services

    The MoD Order mentions that the IFAs are expected to give due attention to macro- management issues, highlighting the need for them to be involved in the planning and plan-review process. These are laudable objectives, but a well-knit mechanism for their implementation does not seem to exist at present.

    November 12, 2015

    Defence Budget 2015 -16: The Writing on the Wall

    Defence Budget 2015 -16: The Writing on the Wall

    It is a fairly simple exercise to estimate what the defence budget will be given available indicators. My assessment is that the Budget Estimate for defence is likely to be around Rs. 250,000 crore, with 105,000 crore for Capital Expenditure and 145,000 Crore for Revenue Expenditure.

    February 27, 2015

    Defence Budget 2015-16: The Bad, the Worse and the Good

    Defence Budget 2015-16: The Bad, the Worse and the Good

    The bad news in this year’s defence budget is that it does not recognise that things are not going in the right direction but only the beaten track. And the poor track record in fully utilising the resources allocated for ‘Modernisation’ is the worse news.

    March 02, 2015

    India’s Defence Budget 2015-16

    India’s Defence Budget 2015-16

    One area where the 2015-16 defence budget is likely to hurt the most is in capital acquisition, which has already been under acute pressure in recent years due to the overwhelming share of the ‘committed liabilities’ arising out of contracts already signed

    March 02, 2015

    An enigma called defence technology fund

    An enigma called defence technology fund

    There has been much speculation since 2011 about who is going to manage the proposed fund, how is it to be different from the already existing technology related heads in the defence budget, and how will the amount set aside for the purpose be utilized.

    August 27, 2014

    Rejig of Defence Budget 2014-15?

    Rejig of Defence Budget 2014-15?

    If reports about the diversion of INR 13,000 crore from the capital segment of the defence budget to the revenue heads are true, it is an indication of the growing strain on the revenue budget.

    January 23, 2015

    Impact of the Recommendations of the Standing Committee on Defence (15th Lok Sabha) on the Defence Budget

    The examination of the detailed demands for grant (DDGs) of the Ministry of Defence (MoD) by the Standing Committee on Defence of the 14th Lok Sabha (2004–05 to 2008–09) and recommendations made by the committee had little impact on the country’s defence budget. While the examination was generally perfunctory, the recommendations were either too general or too impractical to be implemented by MoD. This is the second of two articles that examines how the Standing Committee on Defence of the 15th Lok Sabha (2009–10 to 2013–14) followed the same pattern.

    January 2015

    Impact of the Recommendations of the Standing Committee on Defence (14th Lok Sabha) on the Defence Budget

    In the run-up to the voting on the budget, detailed demands for grant(DDGs) presented by various ministries to the Parliament are examinedby the departmentally-related standing committees. As Parliamentcannot possibly examine more than 100 DDGs presented to it everyyear, these committees are required to examine them in detail and reportback to the Parliament. One such committee is the Standing Committeeon Defence.

    October 2014

    Takeaways for Defence in the Union Budget 2014-15

    There are speculations whether the present budget is sufficient to meet expenditure on big ticket items but one has to bear in mind that it is only the advance payment – generally 15% of the contract value – that becomes payable on signing of a new contract. Even if new contracts are signed for say INR 50,000 crore, MoD will require just about INR 7,500 crore for those schemes.

    July 11, 2014

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