Defence Budget Allocation & Defence Procurement Procedure : News & Discussions
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I'm waiting impatiently for 2022.That's the key year. All our problems will dissipate by 2022 . It'd be a land of milk & honey then. Kamadhenu will keep fulfilling all of the armed forces demands. Remember the year. 2022.
@randomradio is actually Ninda Turtle !!!
WOW !! What a revelation !!
This is the biggest revelation I've ever heard of since "Gangadhar hi Shaktimaan hai"
Budget 2020: Defence Sector Needs Money For Modernisation, Say Experts
Experts believe with India's defence allocation still below 2 per cent of GDP, hiking the defence budget is the need of the hour.
Written by Sakshi Bajaj.
Updated: January 31, 2020 05:54 pm IST
Capital component of defence budget has hovered in 33-34 percent range over last few years
While presenting her maiden Budget speech in July 2019, Finance Minister Nirmala Sitharaman (also earlier Defence Minister) mentioned modernisation and upgradation of the defence sector as "national priority." Experts believe with India's defence allocation still below 2 per cent of GDP, hiking the defence budget is the need of the hour.
Commodore C Uday Bhaskar (Retired), Director, Society for Policy Studies said, "My expectation is that Budget 2020 will be a meaningful redress of the imbalance in the defence allocation, wherein the capital component of the total fiscal allocation for defence will be brought back to the optimum of 40 per cent”.
"While noting that the Finance Minister has to address the abiding challenge of keeping the overall deficit under a certain median, even while ensuring appropriate allocation for all sectors including defence – it merits note that over the last few years the capital component of the defence budget has been hovering in the 33 to 34 percent range. Collectively, the three armed forces are in dire need of funds in the capital account for bare minimum modernization and acquisitions. The existing pattern of fiscal allocation for defence has to be reviewed and increased in a meaningful manner. One hopes that this expectation will not be in vain," said Commodore C Uday Bhaskar.
Major General Ashwani Siwach, Former Head of Territorial Army, said, "Last Budget allocation was 1.5 percent of the GDP which was the lowest after 1962 war. Defence Forces at all cost need money for modernisation. Our neighbouring countries and adversaries, especially Pakistan and China are going all out for modernisation. Pakistan's defence budget is about 3.5 percent of GDP where as China's is about 4 percent of GDP. India's budget should at least be about 2. 5 percent of GDP if not more, notwithstanding the economic slow-down. Last year, the Defence Budget was about Rs 3.05 lakh crore, out of which about 65 percent was catering to revenue for pay and allowances, pension and routine expenditure and only 35 per cent was left for capital (which is required for buying weapons and equipment). This year, it should at least be 15 per cent more than last year, to cater for committed liabilities and inflation."
Budget 2020: Defence Sector Needs Money For Modernisation, Say Experts
Experts believe with India's defence allocation still below 2 per cent of GDP, hiking the defence budget is the need of the hour.
Written by Sakshi Bajaj.
Updated: January 31, 2020 05:54 pm IST
Capital component of defence budget has hovered in 33-34 percent range over last few years
While presenting her maiden Budget speech in July 2019, Finance Minister Nirmala Sitharaman (also earlier Defence Minister) mentioned modernisation and upgradation of the defence sector as "national priority." Experts believe with India's defence allocation still below 2 per cent of GDP, hiking the defence budget is the need of the hour.
Commodore C Uday Bhaskar (Retired), Director, Society for Policy Studies said, "My expectation is that Budget 2020 will be a meaningful redress of the imbalance in the defence allocation, wherein the capital component of the total fiscal allocation for defence will be brought back to the optimum of 40 per cent”.
"While noting that the Finance Minister has to address the abiding challenge of keeping the overall deficit under a certain median, even while ensuring appropriate allocation for all sectors including defence – it merits note that over the last few years the capital component of the defence budget has been hovering in the 33 to 34 percent range. Collectively, the three armed forces are in dire need of funds in the capital account for bare minimum modernization and acquisitions. The existing pattern of fiscal allocation for defence has to be reviewed and increased in a meaningful manner. One hopes that this expectation will not be in vain," said Commodore C Uday Bhaskar.
Major General Ashwani Siwach, Former Head of Territorial Army, said, "Last Budget allocation was 1.5 percent of the GDP which was the lowest after 1962 war. Defence Forces at all cost need money for modernisation. Our neighbouring countries and adversaries, especially Pakistan and China are going all out for modernisation. Pakistan's defence budget is about 3.5 percent of GDP where as China's is about 4 percent of GDP. India's budget should at least be about 2. 5 percent of GDP if not more, notwithstanding the economic slow-down. Last year, the Defence Budget was about Rs 3.05 lakh crore, out of which about 65 percent was catering to revenue for pay and allowances, pension and routine expenditure and only 35 per cent was left for capital (which is required for buying weapons and equipment). This year, it should at least be 15 per cent more than last year, to cater for committed liabilities and inflation."
Budget 2020: Defence Sector Needs Money For Modernisation, Say Experts
Military reforms is the only solution or go the Pakistani way. Let armed forces generate some revenue of their own.
That means no new procurement of Rafale or MiG-29. No Su-30 MKI upgrade too. Just the Mk1a procurement will come thru. I hope the AMCA, MWF & TEDBF funding has been secured.
STOP CRYING , everyone
If Govt can use " OFF BUDGET Financing "
For Development expenditure , it can also be used for Defence
Budget 2020: Off-budget financing- A riddle wrapped up in an enigma
Off Budget Financing is not a new
Concept
If people think that our Defence expenditure is just what is stated in the
Budget , then they are terribly mistaken
It all depends on the Political leadership,
How much they want to spend on Defence
If Govt can use " OFF BUDGET Financing "
For Development expenditure , it can also be used for Defence
Budget 2020: Off-budget financing- A riddle wrapped up in an enigma
Off Budget Financing is not a new
Concept
If people think that our Defence expenditure is just what is stated in the
Budget , then they are terribly mistaken
It all depends on the Political leadership,
How much they want to spend on Defence
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Pay and Pensions are like a Stimulus package for the economy
First of all Pay and Pensions are Taxable
Then people spend that money on Consumer durables, housing or invest in Banks and stocks
So it all helps in stimulating economic activity
Yeah, anything can happen if you don't know whats happening.
Is that that a new thing? Corruption also drive consumption.
My point is that the general public will never know the true figures of Defence
Expenditure AND that is the way it ought to be
No need to reveal National secrets
The All important thing is the will and intent of the Political leadership
Since we do know that a war with Pakistan is quiet likely during PM Modi's tenure , It is obvious that the Govt will find ways
And Means to support it
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Only the strategic project budget is black. Every other modernization has to go through the regular route. Be it rafale or aircraft carrier.
In the last 5 years, defense CAPEX decreased when you add inflation.
Wrong , Corruption takes money from the needy and deserving and gives it to the crooks
It also prevents and delays creation of
Assets which help in economic growth and increase of national income , by enrichment of the corrupt
That does not negate the consumption point which was yours. Pension is eating the modernization budget its a fact. saying it will help with consumption is like saying Blackmarket creates jobs even though its tax revenue.
Ex Service men and their Families are
A Solid Votebank
I will say this again and again
The previous government spent just the bare minimum on defence so that India Cannot take any OFFENSIVE action against Pakistan and always remain in a defensive mode
Everything in Defence expenditure boils down to INTENT
If the Govt wants to spend more , it will find the resources
Time for all the the Indian Defence enthusiasts to face the reality that we are a poor nation and will always have mediocre defence budget, the salaries and pensions will only increase in the future, so all the predictions of increased future capex will just remain dreams.
