Indian Defence budget raised by 34 per cent

[1980rk]

Here is the full split-up of the defence budget for fin yr 09-10!

SS, the split up link posted is not working. Could you post in again please?

 

[1980rk]

NEW DELHI: With an aim of fast-tracking procurement of defence equipment, the government steeply hiked the budgetary allocation for defence to Rs
1,41,703 crore, a 34% increase over the previous fiscal.

The increase in real terms amounted to Rs 36,103 crore over last year's allocation of Rs 1,05,600 crore, and is apparently intended to speed up procurement of defence equipment and plug the security gaps exposed by the November 26 Mumbai terror attacks last year.

The 34% increase is substantial compared to the increase of only 10% effected in last year's budget over Rs 96,000 crore allocated in 2007-08.

In fact, Finance Minister Pranab Mukherjee had allocated the same amount for defence in his interim budget presented in Parliament on February 16 before the Lok Sabha polls.

Despite the hike this year, India's defence spending is still at about 2% of the GDP, compared to China's 7% and Pakistan's 5%.

The defence ministry had returned nearly Rs 7,000 crore as unspent money from its last year's capital outlay of Rs 48,007 crore as its plans to procure light utility helicopters and 155mm artillery guns did not fructify.

 

[1980rk]

NEW DELHI: With an aim of fast-tracking procurement of defence equipment, the government steeply hiked the budgetary allocation for defence to Rs
1,41,703 crore, a 34% increase over the previous fiscal.

The increase in real terms amounted to Rs 36,103 crore over last year's allocation of Rs 1,05,600 crore, and is apparently intended to speed up procurement of defence equipment and plug the security gaps exposed by the November 26 Mumbai terror attacks last year.

The 34% increase is substantial compared to the increase of only 10% effected in last year's budget over Rs 96,000 crore allocated in 2007-08.

In fact, Finance Minister Pranab Mukherjee had allocated the same amount for defence in his interim budget presented in Parliament on February 16 before the Lok Sabha polls.

Despite the hike this year, India's defence spending is still at about 2% of the GDP, compared to China's 7% and Pakistan's 5%.

The defence ministry had returned nearly Rs 7,000 crore as unspent money from its last year's capital outlay of Rs 48,007 crore as its plans to procure light utility helicopters and 155mm artillery guns did not fructify.

Steep-34-hike-in-defence-budget-

 

[third eye]

Its strange that Indians are discussing the Indian Def Budget on a Pk site with no contributions from any non Indian.

 

[notsuperstitious]

Despite the hike this year, India's defence spending is still at about 2% of the GDP, compared to China's 7% and Pakistan's 5%.

These numbers are speculative.

 

[AgNoStiC MuSliM]

Despite the hike this year, India's defence spending is still at about 2% of the GDP, compared to China's 7% and Pakistan's 5%.

Pakistan's defence budget for 2008-2009 was also 'about 2%' of GDP. Not sure what numbers the ToI is using.

But such deliberate distortions of facts in some sections of the Indian media, to paint Pakistan in a negative light and perpetuate 'anti-Pakistan myth's' and anti-Pakistan sentiment within India are commonplace.

Anyway, that clarified, carry on.

 

[AgNoStiC MuSliM]

Its strange that Indians are discussing the Indian Def Budget on a Pk site with no contributions from any non Indian.

What sort of contributions are you looking for?

At the end of the day, its India's own business how much it wants to spend on 'guns vs butter'.

I piped in to clarify incorrect numbers with regards to Pakistan's defence budget, but beyond that I see no need to interject.

 

[notting hill]

Pakistan's defence budget for 2008-2009 was also 'about 2%' of GDP. Not sure what numbers the ToI is using.

But such deliberate distortions of facts in some sections of the Indian media, to paint Pakistan in a negative light and perpetuate 'anti-Pakistan myth's' and anti-Pakistan sentiment within India are commonplace.

Anyway, that clarified, carry on.

hi agnostic , just tried some number crunching and most of the websites have the same pakistani GDP and defence outlay figures .. i am posting an article here .. i did some simple percentage calculation of pakistani defence outlay for the year 2009-2010 as percentage of overall GDP. .. please tell me where am i going wrong 'coz the defence outlay is coming up more than 10 percent of overall GDP.. so here it goes ..


Rs 2.9 trillion outlay for 2009-10 budget: Rs 1,406 billion tax target set, National Assembly body told
ZAHEER ABBASI
ISLAMABAD (June 02 2009): The next budget outlay, for financial year 2009-10, will be worth Rs 2.9 trillion, with Rs 1406 billion target to be set for revenue collection, Ministry of Finance told the National Assembly standing committee on finance, sources said.

They said that Finance Secretary Salman Siddique in his detailed presentation informed the committee that current expenditure would be Rs 2.1 trillion, including Rs 655 billion for debt servicing, Rs 343 billion for defence, and Rs 245 billion will be earmarked for grants and subsidies.

Provincial transfers would amount to Rs 590 billion, whereas overall development budget will be around Rs 745 billion. Media persons were not allowed in the presentation, but sources said that in an overview of the budget the committee was briefed by Finance Secretary about budget expenditure for 2008-09 and budget proposals for 2009-10.

The overall size of the development outlay will be Rs 745 billion in the next budget, that would include Rs 400 billion federal, Rs 200 billion provincial, Rs 70 billion Benazir Income Support Program (BISP), Rs 50 billion for internally displaced people (IDPs) and Rs 7 billion for Bait-ul-Maal. Rs 70 billion, Rs 50 billion and Rs 7 billion have been earmarked in the budget to strengthen social safety net under BISP, internally displaced people (IDPs) and Bait-ul-Maal heads, respectively.

Salman said that fiscal deficit and inflation targets were kept at 4.5 to 5 percent and 9.9 percent respectively for the next fiscal year. He said that tax administration reform program proposals, being worked out by the Economic Advisory Council (EAC) and to be finalised on June 5, would enable them to increase tax-to-GDP ratio in the next fiscal year by 0.6 percent.

The Secretary also shared with the committee the anticipated risk to the budget, saying that low growth, less revenue by the Federal Board of Revenue (FBR), additional security cost and additional cost on rehabilitation of IDPs are seen big threats and pose risk to the budget.

He said that defence expenditure has been increased to Rs 343 billion in the budget from Rs 311 billion allocated for the ongoing fiscal year owing to law and order situation. He said that increase in defence budget was critical and could not be avoided. About addition revenue collection, he said that Rs 60 billion new revenue sources have been identified, whereas Rs 30 billion are being looked for additional income.

Salman, however, added that there would be no burden on the poor and the industrial sector. Sources said that the meeting wanted the government to impose tax on agriculture sector in a way that small farmers are not affected. Big farmers should be taxed, at the same time ensuring protection to the small farmers. Minister of State for Finance Hina Rabbani Khar also attended the meeting.

Business Recorder [Pakistan's First Financial Daily]


now RS 343 billion as a percentage of 2900 billion rupees comes to 11.8 percent... i seriously doubt this rediculous figure or how are they financing it ??.





another article and i found this..

De-Politicise Pak Defense
By Ahmed Quraishi


Islamabad, Pakistan



In our national debate over defense spending, critics often overlook a basic fact: In a mere five decades, and with very little resources, Pakistan managed to change the balance of power in the region with an adversary five times larger. In 2002, we probably made history by driving back the largest hostile military mobilization by one country against another in modern times.


That was probably also the first time that a smaller nation repelled such a massive attempt at coercion without firing a single bullet, using the deterrence created by an indigenous defense capability, backed by creative diplomacy. Never before in recorded military history had a large country amassed almost a million of its soldiers on the borders of a far smaller neighbor, kept them there for almost a year to extract concessions, and then was forced to return home empty handed.


We didn’t do it because Alexander the Great came back to life and joined our forces. And we certainly didn’t do it by putting together a Star Wars-type defense budget. The only way this was possible is because we - and especially our armed forces - intelligently and deftly handled our small resources in a way that maximized returns.


And for a country like Pakistan, born amidst difficult circumstances and thrust from the beginning right into the middle of two tough challenges - building a nation and surviving in a rough neighborhood - what we did and where we stand today militarily is no small feat.


Anyone who has any doubt, consider this:


* Pakistan’s defense expenditure, according to verifiable public figures, has been declining over the last decade or remained stagnant, while our eastern neighbor’s defense budget, for example, increased by almost 100 per cent in the last 10 years


* Pakistani defense spending was maintained at very controllable and reasonable levels over the past fifteen years despite the multiple increase in dollar terms of the cost of military hardware on the international market during the same period


* This was done despite the fact that Pakistan faced tough economic sanctions, especially the ones slapped by the US Congress in 1990 in an attempt to choke the supply line for Pakistan’s American-based weapons systems, and then the 1998 nuclear-related sanctions that unjustly included Islamabad in an essentially Indian crime


* We managed to gain a respectable place in the global defense hierarchy despite the fact that we were ditched by our Cold War ally, Washington, in 1989 and were left to fend for ourselves in a unipolar world


* Defense spending has come down from 21.2 percent in 1999-2000 to 18.8 percent during the current fiscal year 2003-04, as a percentage of total expenditure


* India has allocated approximately 15 billion dollars, almost 6 to 7 times higher than Pakistan’s defense budget, and its defense spending is set to increase manifold in the coming decade despite initiating a peace process with Pakistan


* Yes, there is an increase of 7 percent in defense spending next year compared to this year. But that is, for all practical purposes, a non-issue. Why? Because of the following remarkable fact:


* Our armed forces budget for next year is down to 3.9 percent of GDP compared to this year’s 4.1 of GDP. It means that in overall actual terms, our defense spending is NOT increasing but ACTUALLY decreasing, or staying stagnant

This brings us to our point: We have reached a stage now in our political evolution where defense spending must be de-politicized and protected from political squabbles through a bipartisan consensus.


And that consensus can develop only if all our political players understand that Pakistan’s defense is above the fray. This advice goes particularly to the leftists and the self-styled liberals in our opposition, who came close to crossing the reasonably acceptable red line by exploiting our defense spending for cheap political point scoring.


Zulfiqar Ali Bhutto, the great founder of our nuclear program, must be rolling in his grave every time those who claim to carry his mantle oppose genuine defense requirements for the sake of opposition only.


The fact is, our defense stands impregnable today because late Mr Bhutto and all those who came after him stuck to an unspoken consensus that our defense is above the fray. This is why Mr Bhutto never cared that a viable nuclear program would ultimately embolden the military. His aim was to strengthen Pakistan. And that’s why another of our great maverick politicians, the late Gen Ziaul Haq, continued Mr Bhutto’s nuclear legacy regardless of personal differences.


These were great men. We can question their personal politics but we don’t doubt their commitment to Pakistan’s defense. That is the kind of balanced way of looking at things that Islamabad’s politicians need when approaching defense spending.


De-politicising the debate over defense spending doesn’t mean creating one more scared cow in our politics. Pakistan is vigorously pursuing accountability and the military establishment is extending help in fighting corruption, chasing the army’s own corruption suspects all the way to the US, demanding their extradition and seizing their illegal assets. So there’s no basis to worry that de-politicising defense spending might lead to unchecked corruption.


Today we stand divided between two extremist views in our politics when it comes to discussing how we spend our defense money. There is the extreme left that believes we don’t need to put aside any money for defense and should assign all our bombs and missiles to a metal junkyard in a grand gesture of peace. And then there are those who do want a strong defense for Pakistan but criticize the government and the military over defense spending simply because they don’t like someone in the government or the military.


This is the time for President Musharraf and the military leadership to encourage our political class to develop a bipartisan approach that keeps defense spending above political squabbles. Any future debate on this question must be handled with rationality taking into consideration two things: One, that Pakistan has fought three wars, faced and repelled foreign-inspired destructive ideologies, and continues to live in a difficult neighborhood. And two, that to play a constructive regional and international role, Pakistan needs to develop within the limits of reasonable resources an indigenous defense capability and defense industry.


A credible Pakistani defense capability is the best guarantee that economic and political reforms continue internally while Pakistan’s military vibrancy creates a regional balance of power in favor of peace by providing a deterrence that dissuades others from pursuing hegemonic policies detrimental to the region.


An update: Musharraf and the military promised in October 1999 to introduce a new political culture in Pakistan. We saw a glimpse of that over the weekend when the politicians were forced to demonstrate to the people of Pakistan what a peaceful power transition looks like. This is significant because most of those politicians in past years preferred inciting the military against opponents instead of simply accepting power alternation. The military demonstrated it believed in that peaceful transfer of power back in 1989 but our politicians let us all down. We’ll be ready for free-for-all western style democracy the day our politicians learn last week’s power transfer on their own.


http://www.pakistanlink.com/Opinion/2004/July04/16/04.html

 

[notting hill]

Y ppl from China N pakistan crying over the hike of India's Defence Budget......probably they not able to easily digest the Indian defence expenditure,,,, on the other hand they using 5 ( pak ) N 7 (China ) of their GDP for defence which is far high than Indian defence expenditure......

dude , he certainly didn't act that way .. he gave an argument against a specific opinion that pakistani defence outlay of a certain percentage of its GDP..thats wt this forum is about.. a healthy discussion.. if you have some sources to back yur claim go ahaed and refute agnostic otherwise just shut up and stop posting these inflammatory posts..

and yea a neutral opinion would be appreciated

 

[rhythm_guy]

it was a neutral opinion given by me....

 

[notting hill]

it was a neutral opinion given by me....

shoot, may be i didn't put it the right way .. wt i really meant was NEUTRAL SOURCES buddy if you want some credibility here..

 

[notsuperstitious]

shoot, may be i didn't put it the right way .. wt i really meant was NEUTRAL SOURCES buddy if you want some credibility here..

Hi NH, ignore him, he's just trolling.

To answer your question, AM is talking about defence expenditure as a % of GDP (and not budget expenditure). Those higher numbers for Pakistan (and even China) come from accusations that those countries do not fully show their defence expenditure etc etc, but thats speculative and not substantiated as i previously said.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2034rank.html

 

[notting hill]

thks fateh .. i just read a similar material online and came back to this thread to edit the stuff i posted earlier to make myself look a little less foolish .. lol.. you are right but the commentators from pakistan believe the figure is between 3.9-4.5 % of GDP.

just to give credence to what i am sayin i am giving you a link of one more article which quotes imf senior special advisor for middle east and central asia in a pakistani newspaper "daily news"..

The Pakistan Daily News reports Di Tata as observing "Pakistan's defence spending ... clubbed with administrative expenditure, has reached the alarming figure of 10 percent of GDP, compared with 4 percent three years ago."


link :
http://www.wsws.org/articles/2008/dec2008/****-d16.shtml


now .. the adminstrative expense for 2009-2010 is in the range of 175 billion rupee .. the link of the same is given below.
http://www.geotauaisay.com/2009/06/pakistan-budget-2009-10-analysis-discussions/

defence outlay ( 343 billion) is approx. double the admin expense .. so out of the share of 10 percent GDP claimed by the IMF person above arnd 6 percent GDP constitutes defence outlay ..

 

[aimarraul]

Despite the hike this year, India's defence spending is still at about 2% of the GDP, compared to China's 7% and Pakistan's 5%.

if china remain 7% this year,the defence budget will reach to 322B$,
really great news,india can raise the budget as much as they can afford

 

[AgNoStiC MuSliM]

NH:

My figures, as I mentioned, were from the 2008-2009 budget numbers from the governments budget website - depending upon the exchange rate given the depreciation of the rupee from 65 - 80+ per dollar, the defence budget works out to be about 2.75% of GDP, and about 14% of the total budget.

For the 2009-2010 budget, the total budget is 2.9 trillion with a defence budget of 343 billion = 11.7% of total budget. That is a pretty significant drop in terms of the defence budget as a proportion of the total budget.

Using the current exchange rate of 1 USD =80 Rs. - 343 Billion Rs. = 4.2 billion USD.

Pakistan's estimated GDP for 2008 (per CIA site quoted earlier by fateh) = 160.9 billion USD.

Defence budget as a proportion of GDP: 2.61%. Which is also a drop from last years 2.75%.

https://www.cia.gov/library/publications/the-world-factbook/geos/PK.html

I should correct my last post - it is not only the Indian media that bandies these high defence spending figures about, some commentators in the Pakistani media do it as well.

The motive for the Pakistani commentators lies in the love hate relationship with the Army many commentators and intellectuals enjoy, primarily because of the many years of military rule Pakistan has seen. Because the scars from those years are still fresh for many of these people, Army bashing is a favorite past time.

The Ahmed Qureishi article you quoted uses numbers for 2003-2004, which are quite old.

Beyond that, you have to distinguish between defence spending as a percentage of GDP and defence spending as a percentage of the total budget (as Fateh pointed out already) - you are mixing and matching the two numbers.