Despite budget cut, the ministry, in this fiscal till December 31, has been able to spend over 82 per cent of its budget for modernisation
Despite resistance from Defence Ministry, the government has cut more than Rs. 7,800 crore from the former’s budgetary allocation for this year.
However, notwithstanding the financial constraints, the ministry, in this fiscal till December 31, has been able to spend over 82 per cent of its budget for modernisation while continuing with the drive to procure and upgrade military assets, which has seen a whopping Rs. 3.25 lakh crore (around USD 55 billion) being spent over the last five years.
There was a cut of more than Rs. 7,800 crore in the defence budget of Rs. 2.03 lakh crore for the 2013-14 fiscal despite opposition to the same from the ministry, defence sources said. They, however, added that, with the diversion of funds internally, the ministry has been able to manage.
Last year as well, Defence Ministry had faced a budget cut of more than Rs. 10,000 crore in view of the economic slowdown in the country.
Utilising its full allocation of funds and reversing the earlier trend of limited utilisation, the ministry procured and upgraded a large chunk of military equipment, including nuclear submarines, special operations transport aircraft and fighter planes, sources said.
This year, the ministry has already spent 82 per cent of the capital acquisition budget of around Rs. 80,000 crore and is slated to fully utilise its allocation.
The procurements included 10 C-17 heavylift and 12 C-130J transport aircraft, 12 P-8I anti-submarine warfare planes, Akula-II class nuclear submarine (on lease) and Su-30MKI aircraft.
Besides, money was spent on developing the indigenous LCA Tejas for the IAF and to upgrade 51 Mirage-2000 combat planes.
In 2009-10, the ministry spent Rs. 51,112 crore, which was 106 per cent of the allotted funds whereas, in the next fiscal, it spent Rs. 62,056 crore, or 102 per cent of the allocation, sources added.