Defence Budget

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  • 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

    Moving on with the Defence & Security of India

    Ministry of Defence which accounts for 13-14 per cent of the central government expenditure, if one also takes into account the expenditure on defence pensions, could come under some pressure to prepare an action plan as the outcome of what it does is often intangible, undisclosable, or simply unmeasurable. The author puts forward some suggestions.

    May 20, 2014

    China’s 2014 Defence Budget: An Assessment

    Following on Xi Jinping vision of ‘fight war, win war’, the Chinese military spending is shifting towards higher technology weapons and equipment and training and also illustrates its aim to institute reforms related to troop’s operational commands, organisation and training.

    April 21, 2014

    India’s Interim Defence Budget 2014-15: An Appraisal

    The 10 per cent growth in the interim defence budget although looks impressive from outside, it has a poor outlook on the modernisation front. Much of the hike in the interim budget is consumed by the increase in salary, leaving very little to meet the defence modernisation requirements.

    February 23, 2014

    What is choking the Indian defence budget?

    Projecting a demand which cannot be met is as pointless as allocating budget that is barely sufficient to sustain the armed forces and other departments of the MoD. The persistent neglect of this aspect of defence management is taking its toll not only on the stock of ammunition held by the armed forces, notably the Army, but also on serviceability levels of the equipment.

    February 14, 2014

    Run up to the Defence Budget 2014-15: Challenges to Modernisation

    It is commonly viewed that in an election year, the incumbent government is tempted to present a populist budget. In that scenario, the MoD would have reasons to be unhappy, particularly so when the modernisation requirement of the armed forces has reached a stage which is now contingent upon substantial additional resources to remain on course.

    February 04, 2014

    Assessing Modernization of the Indian Armed Forces through Budgetary Allocations

    India’s quest for modernization of the armed forces is propelled by the persistent threat to its territorial integrity and the aspiration of becoming a great power. However, there is no clearly defined comprehensive policy, much less a carefully crafted strategy, for time-bound modernization of the armed forces and there is no mechanism in place to steer the modernization programme in a holistic manner. In fact, there is considerable ambiguity about the core question as to what constitutes comprehensive ‘modernization’.

    January 2014

    Cut in Non-plan Expenditure and Impact on Defence Budget

    The services will have no option but to reduce the allocation under the heads where the impact is not immediately visible: maintenance of infrastructure, purchase of spares for maintenance of equipment, procurement of ammunition, etc.

    October 03, 2013

    Five Highlights of FY 2012-13

    FY 2013-14 has transited into the annals of the MoD but picking up a few messages from it and carrying forward the unfinished agenda to the next year would be the greatest tribute to the year gone by.

    March 28, 2013

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