Defence Budget: More Money Less Hardware
06 May, 2001 · 492
Wg Cdr NK Pant comments on the current defence budget and the need for judicious use of the increased outlay to modernize the armed forces
This year’s budgetary allocation of Rs 62,000 crores for the armed forces is 14 per cent higher than last year’s revised allocations. Adjusted against an inflation rate of 8 per cent, the allocation show a real time hike of 7.9 per cent. The government has once again opened its purse strings to accelerate acquisition of the latest combat gear for the Indian armed forces.
Russia
has been signed the initial cost may be paid from this year’s estimates. The army’s other important requirement was the purchase of Israeli Searcher unmanned airborne vehicle (UAV) which can snoop undetected over long distances across the LoC. Similarly, the need for weapon locating radar systems to track artillery guns on the Pakistani side of the border is considered inescapable. The Army has also projected an operational necessity for a large number of additional self- propelled guns.
Delhi
class destroyers, and revival of the indigenous submarine programme
Israel
,
Russia
and
Uzbekistan
Pakistan
and
China
spend 4 and 6 per cent of their respective GDPs on their military forces. While
Pakistan
has criticized the hike on Indian military spending,
China
has subsequently announced plans to raise its current $17 billion annual defence outlays by 17 per cent. In the case of
India
, defence experts feel that nation’s growing economy can easily sustain defence expenditure around 3 percent of the GDP. However, the proposed allocations did manifest
New Delhi
’s political will to continue with the pace of modernization, but looking the enormity of the task the budget may not meet the armed forces’ expectations.
The army has received the major share of the allocations amounting to 56.28 per cent of the defence budget. The outlay for the army went up from last year’s Rs. 34,127 crores to Rs. 34,895.96 crores showing a 5.6 per cent rise. A deal to procure 300 T90 tanks from
The Indian Navy’s (IN) share has risen to Rs 9138.82 crores compared to Rs 8214 crores last year which comes to 14.74 per cent of the total defence budget. The navy’s proposal to acquire a Russian aircraft carrier with a complement of 40 ship borne MiG-29 K aircraft has received government’s approval. The IN also plans to equip its combat fleet with Israeli made ship borne Barak missiles. The navy's proposals reportedly awaiting government’s approval are – Project 17 relating to building of stealth frigates, construction of three
The budget for the Indian Air Force has been hiked from the previous year’s Rs 11300.92 crores to 15,172.72 crore showing an increase of 24.3 per cent. It accounts for nearly one fourth of the total defence outlay. If all goes well, the decade long pending deal to acquire 66 Advanced Jet Trainers (AJTs) may be finalised with the British Aerospace, whose Hawk-100 has been selected for the final acquisition. The allocation may also be utilized to pay for 10 mothballed Mirage 2000 multi-role jets for which the deal was signed with France in September last year. The necessity for acquiring AWACS platforms and mid air refueller aircraft also exists, and serious negotiations have been held with
There has been a moderate increase in the Defence Research and Development Organisation’s (DRDO) budget which is pegged at Rs 3518 crores. DRDO has lately been drawing flak for its failure to develop combat hardware for the armed forces. Most of its important projects have not seen fruition, though these were started more than a decade back. This has compelled the defence commanders to look to the international arms bazaar to meet their urgent combat needs. There has also been a sharp drop in the allocations for the ordnance factories. Against Rs 580.38 crores last year, only Rs 80.62 crores have been earmarked for the defence industrial sector.
The defence budget estimates are divided into revenue and capital expenditure heads. While revenue allocations are used for salaries, expendable stores and maintenance, the capital head is meant for acquisition of new combat gear and of modernization charges. Increase under the ‘capital expenditure head’ will be meaningless unless the procedure for acquisition is simplified.
The armed forces and its allied organizations account for 14 per cent of the overall Union Budget. In terms of the GDP, the proposed defence spending comes to 2.6 per cent. On the other hand,
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