Mere four per cent hike in India's defence budget

New Delhi, Feb 26 (PTI) Large procurement plans for armed
forces modernisation notwithstanding, the government Friday
hiked the Indian defence budget for 2010-11 by a paltry four
per cent to Rs 1,47,344 crore from last year's Rs 1,41,703
crore.
Of the allocation provided, Rs 60,000 crore would go for
capital expenditure, India Finance Minister Pranab Mukherjee
said presenting the Budget for 2010-11 in the Lok Sabha.
The four per cent increase in real terms would amount to
only Rs 5,641 crore.
Last year, the government had provided a steep hike of
about 34 per cent for defence, working out to an increase of
Rs 36,103 crore, mainly in view of meeting fast-track
purchases following the Mumbai 26/11 terror attacks and
hand-out of pay commission arrears to defence personnel.
But compared with the revised budget for 2009-10, which
stood at Rs 1,36,264 crore, this year's allocation would mean
a 7.5 per cent increase amounting to Rs 11,080 crore in real
terms.
"Secure borders and security of life and property fosters
development. I propose to increase the allocation for Defence
to Rs 1,47,344 crore. This would include Rs 60,000 crore for
capital expenditure," Mukherjee said in his budget speech.
He, however, added that any additional requirement for the
security of the nation will be provided for.
The defence allocation continues to hover at 2.5 per cent
of GDP, though there have been suggestions to increase it
substantially due to prevailing security situation.
The allocation, however, matches global average of 2.5 per
cent defence expenditure by all nations put together.
India's USD 30 billion defence expenditure is the 10th
largest spending by any country on its external security and
is only 2.1 per cent of the world's total defence expenses
that has touched USD 1,500 billion.
According to Stockholm International Peace Research
Institute's data, US ranks the top defence spender at over USD
600 billion with China coming a distant second with USD 90
billion.
While China's official figures puts its defence spending
at USD 70 billion (1.4 per cent of GDP), Pakistan is said to
be allocating USD 8 billion (4.5 per cent of GDP) for its
armed forces.
Interestingly, the Defence Ministry has returned Rs 5,539
crore this year as unspent money, whereas it had returned over
Rs 7,000 crore last year.
The non-plan expenditure of Defence Ministry this year
has been pegged at Rs 87,344 crore revenue expenditure, a
decrease of Rs 1,096 crore compared to last year's higher
revised allocation of Rs 88,440 crore for handing out sixth
pay commission arrears to its employees.
It will also include the Rs 60,000 crore for capital
expenditure, which is an increase of Rs 12,176 crore over last
year's revised estimates of Rs 47,824 crore.
Among the procurements awaited included 126 combat
aircraft worth USD 10 billion likely to be finalised by 2011,
armed and transport helicopters for the Indian Air Force;
second line of submarines, naval fighters, patrol aircraft and
helicopters for the Navy; and artillery guns and tanks for the
Army. PTI NCB
KAB