Defence Budget

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  • Cut in Defence Budget 2012-13: Prospects and Consequences

    On the capital side, there may not be much of an adverse impact of reduction in allocation if the MMRCA contract gets pushed to the next year. On the revenue side, procurement of ammunition and other equipment as well as maintenance of legacy systems would be adversely affected.

    November 14, 2012

    India’s Defence Budget 2012-13

    An expansionary fiscal policy has been the prime mover for the large increase in the budget of the defence ministry, which would otherwise have come under severe budgetary pressure.

    March 20, 2012

    Outcome Budgeting for Naval Dockyards

    The Indian Navy (IN) has one Naval Dockyard (ND) each at Mumbai and Visakhapatnam and one Naval Ship Repair Yard (NSRY) each at Kochi, Port Blair and Karwar. The repair and refit requirements of IN ships and submarines are collectively met by the above mentioned repair agencies. NDs have the capacity and capability to handle Major Refits (MR). The Operational-cum-Refit cycle of each ship / class of ship is promulgated by IHQ MoD (N) from time to time.

    April 2011

    Outcome Budgeting in India: The Need for Re-Engineering

    The transformation from the comforts of outlay budgeting to an environment of accountability with outcome budgeting is difficult but not impossible. This re-engineering is essential as in the absence of outcome budgeting, budget management may be ineffective and ineffective budget management would weaken the Public Financial Management (PFM) system. A weakened PFM could even threaten established economic, social and political equilibriums.

    April 2011

    India’s Defence Budget 2011-12

    The defence budget for 2011-12 has not been unduly impacted by the fiscal consolidation process, and reflects the MoD’s ability to spend resources within the stipulated time.

    March 07, 2011

    Defence Budget 2011-12 should go beyond Fiscal Austerity

    Ground reality rather than fiscal prudence should guide the Finance Minister while finalising the defence budget for 2011-12.

    February 23, 2011

    India's Defence Budget 2010-11: An Analysis

    India's raised its defence budget for 2010-11 by 3.98 per cent to Rs. 1,47,377 crore. This allocation represents 2.12 per cent of gross domestic product (GDP), which is below the global average of 2.5 per cent. Considering the void in defence preparedness and the rising military expenditure and capability in neighbourhood, India needs to increase its defence spending to around 2.5-3.0 per cent of GDP. However, the increase in allocation has to go with reforms in capital acquisition system, which in present form is unable to spend the allocated resources.

    April 2010

    Food for Thought: Optimising Defence Spending

    While India’s latest defence budget has no doubt catered for a sizeable capital component, it may be prudent to reduce costs by switching to more affordable programmes.

    May 07, 2010

    Reprioritising Defence Acquisitions

    The Indian armed forces appear to be driving defence budgets rather than a cold calculation of the country’s desire for ‘adequate’ military capability.

    March 30, 2010

    India's Defence Public Sector Undertakings: A Performance Analysis

    India has established eight Defence Public Sector Undertakings (DPSUs) whose responsibility is to provide the Armed Forces state-of-the-art equipments and at the same time enhance country's self-reliance in defence production. However the performance of these Undertakings is not up to the mark, resulting in import of arms worth billions of dollars every year. A deeper insight into DPSUs' production profile reveals that most of them are over-dependent on external sources for the production needs, and have a very low labour productivity level, negligible export, and a low R&D base.

    October 2009