The Hindu : National : Spending on defence sector may increase

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National

Spending on defence sector may increase

K.V. Prasad

Emphasis on modernisation of tri services

NEW DELHI: In about a week’s time, the United Progressive Alliance (UPA) government, in its second innings, will present its first full Budget, and there is anticipation that spending on the defence sector will be on the rise.

The emphasis of the government — as outlined in President Pratibha Patil’s address to Parliament — is that the defence forces will be fully enabled with modern technology to repel any threat, undertake steps to enhance combat efficiency, and address its requirement of modern warfare.

Criticism over allocation

Over the last two financial years, the government raised allocation to the Defence Ministry by over 10 per cent In the interim budget, the outgoing government provided Rs.1,41,703 crore, which was Rs.27,000 crore above the revised estimate of Rs.1,14,600 crore for 2008-09.

The trend is expected to be maintained, though there has been criticism that during the last five years of the UPA government, the total budgetary allocation remained between 1.97 per cent and 2.41 per cent of the Gross Domestic Product; much less when compared to India’s neighbours’, especially Pakistan.

Of the Rs.1,41,703 crore, capital expenditure amounted to Rs.54,824 crore, of which over Rs.40,000 crore was earmarked for modernisation, and the balance meant for capital acquisitions, including replacements.

Besides the ongoing modernisation of tri services, ordnance factories and the Defence Research and Development Organisation, the budget would have to take care of the increase in revenue expenditure, in the form of higher salaries and proposed changes in pension following the consistent demand for the ‘One Rank One Pay’ policy.

50 p.c. allocation to IAF

Nearly half the capital expenditure budget meant for defence goes to the Air Force, with the Navy and the Army sharing the other half. The Ministry has some ‘big-ticket’ deals in the offing, including the $10.2 billion 126 Medium Multi Range Combat Aircraft, for which the IAF will begin field trials this August.

There are also moves to acquire 197 Light Utility Helicopters for the Army and the IAF, while the Navy has already signed a deal for three Long Range Maritime Patrol Aircraft, besides negotiating the price of the Aircraft Carrier Admiral Gorshkov (rechristened INS Vikramaditya).

On an average, the Ministry plans to spend around $10 billion (Rs.40,000 crore) each year on capital expenditure, which, in a five-year range at conservative levels, would be at least $50 billion.

Besides acquiring new fighter aircraft, the IAF has been getting funds for upgrading its existing fleet of strike and transport aircraft, and for improving and upgrading airfields.

The Army has been receiving funds for artillery, missiles, and air defence, while the Navy has focussed on the development of an indigenous aircraft carrier, submarine, and on developing other platforms and shoring up assets for enhanced coastal security.

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