tomhardy
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The Finance Minister, Arun Jaitley, threw a few surprises to the defence establishment while presenting the Union Budget 2016-17 on February 29.
The Budget 2016 has put light on government’s plan to spend to focus defence spending more on the domestic market instead of importing fighter planes, ships and submarines. The biggest surprise in the Union Budget is that, of the Rs.3,40,922 crore set aside for the MoD, not a single additional rupee has gone to the defence capital expenditure, which has been curtailed by a whopping Rs. 8,248 crore.
A defence allocation of Rs 2.49 lakh crore was announced as a part of the budget. The allocation was a 0.96 per cent increase over the money the government had set aside for defence in 2015-16.
In recent years, India has emerged as the one of the top arms importers in the world. Major global defence companies have been circling over the Indian market, buoyed by the military's modernisation plans worth more than $100 billion. But the government of Prime Minister Narendra Modi, through its Make in India initiative has vowed to end the military's dependence on imports.
The budget papers also highlight the fact that the military didn't spend the full amount given to it last year. The revised estimate for spending for the fiscal year ending in March was Rs 2.24 lakh crore rupees.
Defence wages and pensions have also risen this year. In absolute figures, the defence pension has increased by Rs. 27,833 crore (or 51%) to Rs. 82,333 crore and the salary of three armed forces by 14 per cent to Rs. 95,852 crore. In other words, pay and pension together has increased by a 29 per cent (Rs 39,938 crore), in comparison to a mere 10 per cent growth in the MoD's overall allocation. This means having less money available for modernization.
The Budget 2016 has put light on government’s plan to spend to focus defence spending more on the domestic market instead of importing fighter planes, ships and submarines. The biggest surprise in the Union Budget is that, of the Rs.3,40,922 crore set aside for the MoD, not a single additional rupee has gone to the defence capital expenditure, which has been curtailed by a whopping Rs. 8,248 crore.
A defence allocation of Rs 2.49 lakh crore was announced as a part of the budget. The allocation was a 0.96 per cent increase over the money the government had set aside for defence in 2015-16.
In recent years, India has emerged as the one of the top arms importers in the world. Major global defence companies have been circling over the Indian market, buoyed by the military's modernisation plans worth more than $100 billion. But the government of Prime Minister Narendra Modi, through its Make in India initiative has vowed to end the military's dependence on imports.
The budget papers also highlight the fact that the military didn't spend the full amount given to it last year. The revised estimate for spending for the fiscal year ending in March was Rs 2.24 lakh crore rupees.
Defence wages and pensions have also risen this year. In absolute figures, the defence pension has increased by Rs. 27,833 crore (or 51%) to Rs. 82,333 crore and the salary of three armed forces by 14 per cent to Rs. 95,852 crore. In other words, pay and pension together has increased by a 29 per cent (Rs 39,938 crore), in comparison to a mere 10 per cent growth in the MoD's overall allocation. This means having less money available for modernization.