Defence Budget

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  • Assessing Modernization of the Indian Armed Forces through Budgetary Allocations

    India’s quest for modernization of the armed forces is propelled by the persistent threat to its territorial integrity and the aspiration of becoming a great power. However, there is no clearly defined comprehensive policy, much less a carefully crafted strategy, for time-bound modernization of the armed forces and there is no mechanism in place to steer the modernization programme in a holistic manner. In fact, there is considerable ambiguity about the core question as to what constitutes comprehensive ‘modernization’.

    January 2014

    Cut in Non-plan Expenditure and Impact on Defence Budget

    The services will have no option but to reduce the allocation under the heads where the impact is not immediately visible: maintenance of infrastructure, purchase of spares for maintenance of equipment, procurement of ammunition, etc.

    October 03, 2013

    Five Highlights of FY 2012-13

    FY 2013-14 has transited into the annals of the MoD but picking up a few messages from it and carrying forward the unfinished agenda to the next year would be the greatest tribute to the year gone by.

    March 28, 2013

    China’s Defence Budget: 2013-14

    The PLA has been laying emphasis on human resource management. Recruitment, salaries, living standards, perks and education are likely to get an impetus with attendant advantages of morale, motivation and technology absorption.

    March 18, 2013

    A Message from the Defence Budget 2013-14

    In its most candid form, the fundamental message is that the growth in the allocation for defence, as indeed for other sectors, may not always be consistent with the past trend or as per the long-term growth rates indicated by the Ministry of Finance.

    March 08, 2013

    India’s Defence Budget 2013-14: A Bumpy Road Ahead

    A GDP growth of less than seven per cent combined with the fiscal consolidation path that the Finance Minister has articulated in his budget speech means a lot of pressure on the defence ministry whose plan for current and future expenditure up to 2017 is based on past GDP growth rate of 8 to 9 per cent.

    March 04, 2013

    The Defence Budget 2013-14: Reasonable in the Existing Circumstances but Need for Re-orientation and Reform

    There is a need for an overhaul of the defence planning and budgeting systems to make them outcome oriented, which will lead to the development and maintenance of requisite capability through the defence forces as an entity over a specified long-term horizon.

    March 04, 2013

    India’s Defence Budget: Trends Beyond the Numbers

    In the larger scheme of things, fiscal prudence is a good trait and the reduction in deficits desirable, yet an overtly ambitious approach of reducing deficits into a number game may lead to developments that may hurt us not only in the security arena but in economic growth as well.

    March 04, 2013

    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.

    February 27, 2013

    Defence Budget 2013-14: An upcoming tight spot

    The prospects of allocation for the next year being less than the allocation for the current year are remote because of the immense implications it would entail, although it is likely that the growth in the budgetary allocation for the next fiscal may be less than what has been the case in the past.

    February 11, 2013

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