Indian Defence Budget for 2012-13 hiked to 1.95 lakh crore ($39 billion)

[Hello_10]

No that will not happen this year as:

1. election year is near

2. Govt. will have plenty of money

a.) economy is growing

b.) THE MOST IMPORTANT THING they have raised excise and service tax from the rate of 10% to 12% (Pre 2008 era, govt. reduced them in 2008-9 because of global recession)

The funds will be no issue.

Union Budget 2012-13: Highlights - The Times of India

The best thing I like in the budget of Mr Mukherjee, that, “keeping 2012-13 subsidies under 2 per cent of GDP”. India is not the country like developed Western nations who may feed the poor by Welfare. Budget would be made to have more investments which would itself provide more jobs to everyone, including poor people. “Investment of one dollar cause return of 66cent (66%) through different direct and indirect taxes.” So in place of $1bn subsidy, it is wise to Invest it in infrastructure to give jobs of $1bn to people and get $666mil back through different direct and indirect taxes which may again be used for further investments.

(Welfare is successful in Western countries who are worried for their under high school pass lazy population, who first don’t want to work and if they commit crimes then it will be more expansive to bear their expanses in Jail. So better give Welfare to this type of under high school pass people and keep them quiet. But Indian society, backed by Indian culture, doesn’t make that type of families of ‘single mother’ . parents in India work and pay for the expanses of their kids by their own to give them better education. Indian kids don’t grow on Welfare like Western kids of 'Single Mothers' and India doesn’t want this type of western culture where men change with different women every year and their kids grow on Welfare money . India needs more investments in infrastructure to generate jobs, not subsidies. )

 

[Varunastra]

i just don't get it..........previous year we could only spend 70% of our d.buget..............and now we are increasing our budget from 36 b to 42 b.................why are we giving more food to a persons plate who is not being able to eat what is already there in the plate????

 

[R-DB]

The Army of course!

..again navy or airforce...
army ??not this year atleast

 

[Markus]

The defense ministry never spends all of its money and it goes back to the finance ministry there by depriving other useful ministries of money.

If the defence ministry does not spend it all, at the right place and at the right time, this substantial increase is useless and meaningless.

 

[Chinese-Dragon]

India's GDP growth is currently at 6.1%.

And they are increasing their defence spending by 17%.

It looks like a very good decision.

 

[R-DB]

India's GDP growth is currently 6.1%...

And they are increasing their defence spending by 17%.

It looks like a very good decision.

China's economic growth rate is projected to grow by 8.3 percent in 2012 due to uncertainties in the global economy, Standard & Poor (S&P) said.

S&P is more bullish on the rate of growth than many analysts.

The growth rate, though lower than the 9.2-percent recorded in 2011, is still higher than the 7.5-percent official target set during the annual meeting of the National People's Congress, China's top legislature, earlier the month.

Standard & Poor tips 8.3% GDP growth for China in 2012 - Proactiveinvestors (AU)

you too slowed down..wow.. and its happening with whole world economies.

 

[foxbat]

India's GDP growth is currently at 6.1%.

And they are increasing their defence spending by 17%.

It looks like a very good decision.

Isnt China's GDP growth rate also lower than its defense budget increase ??

 

[Hello_10]

I repeat.. Your understanding of maths reflects badly on your education.. Increasing something that is 2.5% of GDP by 17% does not make it equal to 17% of GDP. Read again dude

Look, if you have 7.5% growth rate for the whole financial year 2011-12, then with 7.5% inflation, increase of little over 15% in defense budget would keep its ratio to GDP on the same level. And if we consider ‘value added’ factors which also includes international prices of minerals like coal/ oil/ gas etc in US$ term, no matter how much Indian currency depreciates w.r.t. US$. and with other factors, then overall 19% increase in defense budget would keep its ratio to GDP on almost at the same level as it was a year before.

 

[Hello_10]

India's GDP growth is currently at 6.1%.

And they are increasing their defence spending by 17%.

It looks like a very good decision.

GDP growth rate of India for the 1st quarter of 2011-12 was 7.8%, for the second quarter it was 6.9%, but for the third quarter ending on december 2011, it was 6.1% only. and it is believed that there will be upward revision of datas making the overall GDP growth of India for the finacial year "April 2011 to March 2012", to around 7.3%, hopefully.

the december quarter of most of the economies of the world were very poor. Japan got -0.9% growth rate during last quarter, Thailand around -10.0% and overall whole non-minearal rich countries faced the similar results that last quarter of 2011
check, TradingEconomics.com - Economic Data for 196 Countries

 

[Chinese-Dragon]

Isnt China's GDP growth rate also lower than its defense budget increase ??

Yes.

Our GDP growth for 2011 was 9.2%... and the increase in our military budget was 11% (a gap of two percent). We can get away with this, because our defence spending almost entirely goes into our own indigenous defence industries.

India's current GDP growth is 6.1%... and they are increasing the defence budget by 17%. Not to mention the fact that India's defence budget is used mostly to buy foreign military equipment.

This is not necessarily a negative thing. If India goes to war in the immediate future (e.g. In the next few years)... then India will benefit a lot from this strategy.

 

[Markus]

Yes.

Our GDP growth for 2011 was 9.2%... and the increase in our military budget was 11%. We can get away with this, because our defence spending almost entirely goes into our own indigenous defence industries.

India's current GDP growth is 6.1%... and they are increasing the defence budget by 17%. Not to mention the fact that India's defence budget is used mostly to buy foreign military equipment.

This is not necessarily a negative thing. If India goes to war in the immediate future (e.g. In the next few years)... then India will benefit a lot from this strategy.

India has a military offset policy, whereby 30% to 50% of all major purchases will have to injected back into the Indian economy by the winning foreign company. So overall, the actual out-go will not be as high as it may look on first glance.

 

[DDLJ]

Yes.

Our GDP growth for 2011 was 9.2%... and the increase in our military budget was 11%. We can get away with this, because our defence spending almost entirely goes into our own indigenous defence industries.

India's current GDP growth is 6.1%... and they are increasing the defence budget by 17%. Not to mention the fact that India's defence budget is used mostly to buy foreign military equipment.

This is not necessarily a negative thing. If India goes to war in the immediate future (e.g. In the next few years)... then India will benefit a lot from this strategy.

Dear high IQ Chinese 6.1% GDP growth is for third quarter of October-December. and even 6.1% GDP growth there was no mass layoff in India but in China your whole export sector is in crisis causing increasing unemployment and social unrest.

 

[foxbat]

Yes.

Our GDP growth for 2011 was 9.2%... and the increase in our military budget was 11%. We can get away with this, because our defence spending almost entirely goes into our own indigenous defence industry.

India's current GDP growth is 6.1%... and they are increasing the defence budget by 17%. Not to mention the fact that India's defence budget is used mostly to buy foreign military equipment.

This is not necessarily a negative thing. If India goes to war in the immediate future (e.g. In the next few years)... then India will benefit a lot from this strategy.

Do you know the split of this budget into capital acquisitions and running expenses (salaries and other expenses that go into the Indian economy) ??

 

[ManuZ]

As long as the defense budget stays within 5% of the GDP all is fine....

 

[Raje amar]

i think the rise is sufficient for us.

though we need to mordanise our armed forces. it not going to happen in just this year. will continue in next decade.
though we consider $10 Bil for capital purcheses per year, next 10 - 12 years will bring more than $120Bil.

this year we need to concentrate on fiscal deficite, may be next year the rise will be more.