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Indian Govt to hike defence budget

Lankan Ranger

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Aug 9, 2009
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Indian Govt to hike defence budget

In the backdrop of evolving Asian security scenario, defence modernisation is poised to get a massive boost in the coming fiscal with the Budget likely to increase capital acquisition allocation by almost 25 per cent. Defence Ministry officials said that the Finance Ministry has agreed to a “significant jump” in the capital acquisition outlay to nearly Rs 56,000 crore in 2011-12 from revised provision of Rs 45,000 crore in the current fiscal.

The enhanced outlay is seen as being in sync with the defence spending by India’s immediate neighbours, especially China which has been increasing its outlays by double digits over the last two decades.

However, most of the enhanced Budget — nearly Rs 35,000 crore — would go towards “committed liabilities of the past few years”, said the officials. Besides, there would be new spending on big ticket items such as medium multi-role combat aircraft (MMRCA) and much delayed reconnaissance and surveillance helicopters.

India plans to spend Rs 46,000-crore for 126 MMRCA, the world’s most advanced fighter aircraft, for Indian Air Force and more than Rs 60,000 crore for 197 advanced helicopters for IAF and the Indian Army. “Field trials have been completed for both products and only the government (Cabinet Committee on Security) approval remains,” said the officials.

The enhanced outlay is also reflective of the Defence Ministry’s past record in spending. After struggling during his initial years as the Defence Minister, A K Antony has been able to exhaust the Budget allocation for the second year in a row.

“We are reasonably confident that we will be able to place orders for the money allocated to us during the current fiscal,” said a senior ministry official. Most of it, he said, has been tied up. “What remains is CCS approval for Akash missiles, C-17 Globemaster aircraft, Mirage-2000 upgrade and additional purchase of patrol vessels. These proposals are being dealt with at various levels and are likely to be cleared before March 31 (when the fiscal year ends),” he said.

Govt to hike defence budget
 
Markus, the potential Indian Finance Minister, proposes a one time defence allocation equal to 5 % of India's GDP which will go back to the normal 2.5 % of GDP from next year onwards.
 
^When was the last time personal tax was increased o_O
@Thread: Wow that's a 20% percent jump from last year. Our armed forces are getting more and more modern by the day.
 
anyway considering our armed forces modernisation plans.. we defenetily need to increase the budget....
 
I have no problem with the hike as long as the stated goals are met.

For instance by end of the decade 2001-2010 there was a plan to reduce foreign reliance for military to 30%,so far only 10% reduction was seen.
 
In keeping with the emerging multiple threats we should raise Defense allocation to 5% of GDP for next 5 years at least.

Otherwise our economy, growth, development, people will be on the mercy and blackmail.
 
Total waste of money on imports. Total lack of focus on domestic R&D.

LCA project got only $1.8 Billion in 30 years(wasted 8 years because of IAF's excuses) and IAF want $15 Billion for just 125 MRCA with license paper-TOT which has zero R&D value.

China is spending so much on domestic R&D and Indians are dreaming of being world power by importing 125 F-18's. Joke of the century!

---------- Post added at 05:38 PM ---------- Previous post was at 05:37 PM ----------

$1.8 Billion includes IAF+Navy+Trainer versions+Infrastructure base from scratch. What a shame!
 
Whats the bloody use in increasing the budget when there is no visible sign of modernising except perhaps in the Navy (yes I am pointing towards the Howitzer acquisition, the MRCA deal and the bloody bureaucracy surrounding that)
 
Whats the bloody use in increasing the budget when there is no visible sign of modernising except perhaps in the Navy (yes I am pointing towards the Howitzer acquisition, the MRCA deal and the bloody bureaucracy surrounding that)

Relax and chill, with Antaony there who is known for being honest. I am not that worried.
 

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