The Indian defence budget has for the first time crossed Rs 3 lakh crore. This was announced by the interim finance minister among much desk-thumping in the Parliament. Factually, there is nothing to contest this statement, but it is also a fact that as a percentage of the GDP, the defence budget is at its lowest level. The current allocations will put enormous pressure on the modernisation of the military, particularly the army that has only 18% of its budget earmarked for capital acquisitions.
Revenue funds are also stressed and routine activity like training could suffer. The principal controller of defence accounts had recently declared that, “Due to insufficient funds available under Temporary Duty & Permanent Duty Heads of Army Officers, no TA/DA advances & claims can be processed till receipt of sufficient funds under the relevant heads.” The construction of Rafale hangars has been hit over pending dues to the Military Engineer Services. Read more