Defence ministry seeks 25% hike in budget - The Times of India
NEW DELHI: The defence ministry has sought an almost 25% hike in its budget, pointing to "operational gaps" in manpower, machines and infrastructure, in the action plan prepared for the Narendra Modi government.
The defence establishment has also urged the new political dispensation to take a call on a wide range of issues, ranging from recommendations of the Naresh Chandra task force on higher defence reforms to the creation of three new tri-Service commands for space, cyber and special forces.
The action plan's underlying message, however, is that existing funds are proving grossly inadequate to ensure the country's war machinery is kept fighting fit. Leave alone the dwindling capital budget for new acquisitions, the defence establishment is "running quite short" of even revenue expenditure to "properly maintain" existing or new weapon systems with sufficient spares.
The defence outlay was pegged at Rs 224,000 crore in the 2014-2015 interim budget, with the Rs 134,412 crore revenue expenditure far outstripping the capital one for new weapons, sensors and platforms at Rs 89,588 crore.
"The major chunk of the capital outlay is being eaten up by committed liabilities and instalments for earlier acquisitions. This backlog will continue for a few years. It has been made clear that either the budget should be hiked or the new acquisitions should be delayed," said a source.
India, for instance, did not have enough money to pay even the "first full instalment" of the last major defence deal to be inked, the $1.01 billion one for six additional American C-130J "Super Hercules" aircraft last December.
Several virtually-finalized deals are lined up for the new government, which include the ones with the US like 22 Apache attack helicopters (around $1.4 billion), 15 Chinook heavy-lift helicopters (around $1 billion), and 145 M-777 ultra-light howitzers ($885 million).
Then, of course, there is the long-delayed $20 billion MMRCA (medium multi-role combat aircraft) project for 126 French Rafale fighters, which is in the final stages now. This alone will see an outgo of over Rs 10,000 crore as the first instalment once the contract is inked.
The slow pace of infrastructure development as well as its funding is another "critical issue" flagged by MoD. While Rs 64,678 crore will be spent on raising the new XVII Mountain Strike Corps (with 90,274 troops) by 2018-2019, the price tag for infrastructure on the "northern borders" with China is pegged at another Rs 26,155 crore.
Only 17 of the 73 "strategic" roads, identified for construction along the Line of Actual Control almost a decade ago, have been fully completed till now. "Apart from enhancing the capacity of Border Roads Organization, outsourcing of roads to private firms is being considered," said a source.
Similarly, the actual construction of the 14 "strategic" railway lines is yet to kick-off due to a tussle over who will foot the bill, the railways, defence or finance ministries. As per feasibility studies conducted till now, nine of the rail links will cost Rs 55,831 crore.
"Funds are also required to upgrade airbases like Nyoma and Kargil as well as advanced landing grounds in the eastern sector. Force-levels at the Andaman and Nicobar Command can also be bolstered only after infrastructure comes up there," he added.
Shortage of officers in the 13-lakh strong armed forces poses another challenge. The Army, for instance, is making do with just about 38,600 officers when its "sanctioned strength" is 46,614. "The training capacity and infrastructure at the Officers' Training Academies at Gaya and Chennai, apart from the National Defence Academy, needs to be expanded," he said.
2014-2015 Interim Budget
Defence Budget: Rs 224,000 crore (around $36 billion). The 10% hike over 2013-2014 outlay of Rs 203,672 crore just covers inflation
Revenue Expenditure (day-to-day costs and salaries): Rs 134,412 crore
Capital Expenditure (new acquisitions): Rs 89,588 crore
It's just 1.74% of projected GDP, the lowest such figure in over three decades. Experts for long have been demanding 3% to cater for the twin threat perception from China and Pakistan, both of whom spend well close to 3% on defence
NEW DELHI: The defence ministry has sought an almost 25% hike in its budget, pointing to "operational gaps" in manpower, machines and infrastructure, in the action plan prepared for the Narendra Modi government.
The defence establishment has also urged the new political dispensation to take a call on a wide range of issues, ranging from recommendations of the Naresh Chandra task force on higher defence reforms to the creation of three new tri-Service commands for space, cyber and special forces.
The action plan's underlying message, however, is that existing funds are proving grossly inadequate to ensure the country's war machinery is kept fighting fit. Leave alone the dwindling capital budget for new acquisitions, the defence establishment is "running quite short" of even revenue expenditure to "properly maintain" existing or new weapon systems with sufficient spares.
The defence outlay was pegged at Rs 224,000 crore in the 2014-2015 interim budget, with the Rs 134,412 crore revenue expenditure far outstripping the capital one for new weapons, sensors and platforms at Rs 89,588 crore.
"The major chunk of the capital outlay is being eaten up by committed liabilities and instalments for earlier acquisitions. This backlog will continue for a few years. It has been made clear that either the budget should be hiked or the new acquisitions should be delayed," said a source.
India, for instance, did not have enough money to pay even the "first full instalment" of the last major defence deal to be inked, the $1.01 billion one for six additional American C-130J "Super Hercules" aircraft last December.
Several virtually-finalized deals are lined up for the new government, which include the ones with the US like 22 Apache attack helicopters (around $1.4 billion), 15 Chinook heavy-lift helicopters (around $1 billion), and 145 M-777 ultra-light howitzers ($885 million).
Then, of course, there is the long-delayed $20 billion MMRCA (medium multi-role combat aircraft) project for 126 French Rafale fighters, which is in the final stages now. This alone will see an outgo of over Rs 10,000 crore as the first instalment once the contract is inked.
The slow pace of infrastructure development as well as its funding is another "critical issue" flagged by MoD. While Rs 64,678 crore will be spent on raising the new XVII Mountain Strike Corps (with 90,274 troops) by 2018-2019, the price tag for infrastructure on the "northern borders" with China is pegged at another Rs 26,155 crore.
Only 17 of the 73 "strategic" roads, identified for construction along the Line of Actual Control almost a decade ago, have been fully completed till now. "Apart from enhancing the capacity of Border Roads Organization, outsourcing of roads to private firms is being considered," said a source.
Similarly, the actual construction of the 14 "strategic" railway lines is yet to kick-off due to a tussle over who will foot the bill, the railways, defence or finance ministries. As per feasibility studies conducted till now, nine of the rail links will cost Rs 55,831 crore.
"Funds are also required to upgrade airbases like Nyoma and Kargil as well as advanced landing grounds in the eastern sector. Force-levels at the Andaman and Nicobar Command can also be bolstered only after infrastructure comes up there," he added.
Shortage of officers in the 13-lakh strong armed forces poses another challenge. The Army, for instance, is making do with just about 38,600 officers when its "sanctioned strength" is 46,614. "The training capacity and infrastructure at the Officers' Training Academies at Gaya and Chennai, apart from the National Defence Academy, needs to be expanded," he said.
2014-2015 Interim Budget
Defence Budget: Rs 224,000 crore (around $36 billion). The 10% hike over 2013-2014 outlay of Rs 203,672 crore just covers inflation
Revenue Expenditure (day-to-day costs and salaries): Rs 134,412 crore
Capital Expenditure (new acquisitions): Rs 89,588 crore
It's just 1.74% of projected GDP, the lowest such figure in over three decades. Experts for long have been demanding 3% to cater for the twin threat perception from China and Pakistan, both of whom spend well close to 3% on defence
