Interim Defence Budget 2019-20
The eight per cent hike in the interim defence budget 2019-20 is bound to further intensify the resource problem of the MoD, which is already battling a massive shortage of funds.
- Laxman Kumar Behera
- February 04, 2019
India spends a significant amount of resources on its national defence. Efficiency in utilisation of resources is not only an economic imperative but vital for defence preparedness. In view of this, the Defence Economics and Industry Centre was created in 2006 to promote research on various economic aspects of India’s defence. Since its inception, the Centre has undertaken a number of policy relevant studies besides constantly engaging vital stakeholders (Ministry of Defence, Armed Forces and Industry) on a range of issues. The major focus areas of the Centre are:
No posts of Books and Monograph.
No posts of Jounral.
The eight per cent hike in the interim defence budget 2019-20 is bound to further intensify the resource problem of the MoD, which is already battling a massive shortage of funds.
Defence capability building and capability sustenance have been adversely affected over the past decade because of inadequate allocations and the status quo approach of the Defence Services.
It is important to pay greater attention to the system of costing followed by the MoD given that costing errors could result in the sanctioning of an unaffordable procurement programme, contract being awarded at a higher price, cost and time overruns, and default on contractual commitments.
It is administratively easy and politically appealing to debar an errant entity, but the unintended consequences of debarment can be challenging to handle in high-technology areas such as defence
The Brief argues that MoD’s total allocations should be considered for any discussion on defence expenditure since the official defence expenditure does not capture all the expenses that the government incurs on national defence efforts.
The Defence Planning Committee needs to activate its ‘Plan and Capability Development’ Sub-committee and task them to review the 13th Defence Plan in a time bound manner.
India appears to be failing to consider the geopolitical and foreign policy fallouts from signing the so-called foundational military pacts with the United States.
Mutual and shared interests between India and the US must form the basis of an enduring solution to the quandary presented by the provisions of the Countering America’s Adversaries through Sanctions Act.
While the provisions of the Countering America’s Adversaries through Sanctions Act (CAATSA) are unlikely to be imposed on India anytime soon, it is nonetheless likely to prove a dampener on an otherwise booming defence relationship between India and the United States.
The Cell will remain hamstrung if its powers are not clearly defined, especially in regard to securing budgetary support which is to be provided by the Director General of Quality Assurance.



