Defence Budget

If reports about the diversion of INR 13,000 crore from the capital segment of the defence budget to the revenue heads are true, it is an indication of the growing strain on the revenue budget.

• Amit Cowshish
• January 23, 2015
• IDSA Comments

In the run-up to the voting on the budget, detailed demands for grant(DDGs) presented by various ministries to the Parliament are examinedby the departmentally-related standing committees. As Parliamentcannot possibly examine more than 100 DDGs presented to it everyyear, these committees are required to examine them in detail and reportback to the Parliament. One such committee is the Standing Committeeon Defence.

• Amit Cowshish
• October 2014
• Journal of Defence Studies

There has been much speculation since 2011 about who is going to manage the proposed fund, how is it to be different from the already existing technology related heads in the defence budget, and how will the amount set aside for the purpose be utilized.

• Amit Cowshish
• August 27, 2014
• IDSA Comments

There are speculations whether the present budget is sufficient to meet expenditure on big ticket items but one has to bear in mind that it is only the advance payment – generally 15% of the contract value – that becomes payable on signing of a new contract. Even if new contracts are signed for say INR 50,000 crore, MoD will require just about INR 7,500 crore for those schemes.

• Amit Cowshish
• July 11, 2014
• IDSA Comments

Ministry of Defence which accounts for 13-14 per cent of the central government expenditure, if one also takes into account the expenditure on defence pensions, could come under some pressure to prepare an action plan as the outcome of what it does is often intangible, undisclosable, or simply unmeasurable. The author puts forward some suggestions.

• Amit Cowshish
• May 20, 2014
• IDSA Comments

Following on Xi Jinping vision of ‘fight war, win war’, the Chinese military spending is shifting towards higher technology weapons and equipment and training and also illustrates its aim to institute reforms related to troop’s operational commands, organisation and training.

• M.S. Prathibha
• April 21, 2014
• IDSA Comments

The 10 per cent growth in the interim defence budget although looks impressive from outside, it has a poor outlook on the modernisation front. Much of the hike in the interim budget is consumed by the increase in salary, leaving very little to meet the defence modernisation requirements.

• Laxman Kumar Behera
• February 23, 2014
• IDSA Comments

Projecting a demand which cannot be met is as pointless as allocating budget that is barely sufficient to sustain the armed forces and other departments of the MoD. The persistent neglect of this aspect of defence management is taking its toll not only on the stock of ammunition held by the armed forces, notably the Army, but also on serviceability levels of the equipment.

• Amit Cowshish
• February 14, 2014
• IDSA Comments

It is commonly viewed that in an election year, the incumbent government is tempted to present a populist budget. In that scenario, the MoD would have reasons to be unhappy, particularly so when the modernisation requirement of the armed forces has reached a stage which is now contingent upon substantial additional resources to remain on course.

• Laxman Kumar Behera
• February 04, 2014
• IDSA Comments

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’.

• Amit Cowshish
• January 2014
• Journal of Defence Studies