Defence Budget

Economic moorings of the defence budget

While the anguish over the state of modernization of the armed forces, the slow march towards achieving the capability for simultaneous action on two-fronts and rather feeble power projection on a global scale are understandable, what is not understandable is the expectation that the outlays for achieving these objectives would increase exponentially, irrespective of the state of the economy.

Outcome Budgeting in India: The Need for Re-Engineering

The transformation from the comforts of outlay budgeting to an environment of accountability with outcome budgeting is difficult but not impossible. This re-engineering is essential as in the absence of outcome budgeting, budget management may be ineffective and ineffective budget management would weaken the Public Financial Management (PFM) system. A weakened PFM could even threaten established economic, social and political equilibriums.

Outcome Budgeting for Naval Dockyards

The Indian Navy (IN) has one Naval Dockyard (ND) each at Mumbai and Visakhapatnam and one Naval Ship Repair Yard (NSRY) each at Kochi, Port Blair and Karwar. The repair and refit requirements of IN ships and submarines are collectively met by the above mentioned repair agencies. NDs have the capacity and capability to handle Major Refits (MR). The Operational-cum-Refit cycle of each ship / class of ship is promulgated by IHQ MoD (N) from time to time.