Defence budget may touch 40 billion dollars

Discussion in 'Defence & Strategic Issues' started by JAISWAL, Feb 26, 2012.

  1. JAISWAL

    JAISWAL Senior Member Senior Member

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    NEW DELHI: The coffers of the Ministry of Defence are likely to swell considerably in the upcoming budget. When Finance Minister Pranab Mukherjee presents the Union Budget for 2012-13 in March, the annual defence budget is likely to touch `2 lakh crore to keep the Armed Forces’ modernisation drive going full throttle.
    For 2011-12, the defence budget had seen a hike of 11.6 per cent and if the trends and the need of the Armed Forces, which are modernising for a two-pronged defence of the country against rising China’s aggression in the East and growing instability in Pakistan on the West, are anything to go by, even 8 per cent hike will take the budget closer to `2 lakh crore.
    “Our defence budgets have seen an increase equivalent to 5-8 per cent. Increasing it by 8 per cent will roughly take it to the figure of `2 lakh crore. Also, the increase has to be done keeping in mind the value of Rupee in the international market,” former chairperson of the National Maritime Foundation (NMF) Commodore (Retd) Uday Bhaskar told Express.
    In 2011-12, the total budget allocated was `1,64, 415 crore, which comes out to be 2.5 per cent of the GDP. Out of this `95, 216 crore was revenue expenditure and `69,199 crore for modernisation of the Armed Forces.
    There has always been a clamour from the think tanks to hike the country’s defence budget to at least 3 per cent of the country’s GDP in the wake of the huge defence spending by China and Pakistan. But the piling amount of unspent modernisation budget has been the main impediment in the way of this hike. As the Defence Ministry has succeeded in spending its complete budget for the second consecutive year in 2011-12, the demand will find more takers.
    Presently, all the three Armed Forces, Army, Navy and Air Force, are on the cusp of transformation and huge deals for platforms and weapons with the cutting edge technology are expected to be finalised in the 2012-13.
    Among the deals in the final stages include 126 fighter jets for $20 billion, six mid-air refuelling aircraft for $2 billion, 75 trainer aircraft for $ 1 billion, 197 utility helicopters for $750 million, 22 attack choppers valued at $600 million and GE F414-INS6 engines for indigenous Light Combat Aircraft (LCA) Tejas and Harpoon anti-ship missiles estimated at $ 170 million. Besides, about 40 warships of the Navy, including refurbishment of an aircraft carrier and nuclear-powered submarine, are under construction at home and abroad. In view of this, defence experts seek a reversal in the ratio of capital.
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    Source-- Defence budget may touch Rs. 2 lakh crore | | | The New Indian Express
     
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  3. Blackwater

    Blackwater Veteran Member Veteran Member

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    What a shame,we need 40 billion$$$$ to maintain our armed forces and on the other hand pak did it for free

    We need 10 yrs just to decide MRCA ,pak managed to get any military hardware(free) in few months ,so what by begging, still manage


    :tsk::tsk::frusty::frusty::hair:
     
  4. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    I don't think our defence budget will reach 3% so quickly.

    The food bill itself will eat up most of the budget.
     
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  5. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    UPA and its populist policies are burning our ass. I want this UPA to go out of india ASAP. Only then there can be salvation for the country.
     
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  6. sesha_maruthi27

    sesha_maruthi27 Senior Member Senior Member

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    I don't know what they are doing with the food? Many are without food and these people are taking money by the name of food.
     
  7. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    GE F414 deal is not signed? Cancel that and go for Kaveri Snecma.
     
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  8. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

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    Upto ur usual business lobby eh???? will you even leave a single chance???
     
  9. p2prada

    p2prada Stars and Ambassadors Stars and Ambassadors

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    The F-414s are required by 2014. Kaveri K-10 can be used for when the LCA comes up for MLUs. K-10 is required in the 2017-18 period for powering the AMCA prototypes.
     
  10. sayareakd

    sayareakd Moderator Moderator

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    70,000Cr for capital expenditure, how much they have used this money ?? I dont think they have paid for big ticket purchases so far, may be for lease of nuke sub, A3 and shurya are few system doing induction. Btw what happen to unuse money which is send back, does it goes to black projects???? There is no mention of this money in any budget.
    May be ATV was funded from such funds in past.
     
  11. sayareakd

    sayareakd Moderator Moderator

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    isn't Rs. 69,199 crore too low for capital expenditure.

    if 25000 is for one INSAS then only 400 INSAS for 1 crore. Now we are talking about our entire defence capital expenditure, including money for R&D used by DRDO. This figure needs to be increased and more and more force multiplier platforms need to be inducted. Good time to go for 3 % of GDP for defence.
     
  12. trackwhack

    trackwhack Tihar Jail Banned

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    This budget is exclusive of DRDO, BARC and other strategic R&D and ordinance institutions right?
     
  13. sayareakd

    sayareakd Moderator Moderator

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    DRDO yes, BARC no, strategic R&D yes and OFB and others yes. But most of it is secret, they have defence standing committee which takes care of all this.
     
  14. sayareakd

    sayareakd Moderator Moderator

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    figures for 2011-2012 budget for defence allocation

    [​IMG]
     
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  15. trackwhack

    trackwhack Tihar Jail Banned

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    Thanks Saya, man that's pathetic whats set aside for R&D. 6% of 40 billion is 2.4 billion. What the hell can they accomplish with that. Defence R&D should be funded with at least 10 billion annually.

    We should stop cursing DRDO and sympathise with them a bit, really, wtf can they accomplish with this measly funding. To put things in perspective the F35 total R&D budget is 350 billion. One program 350 billion!!!
     
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  16. sayareakd

    sayareakd Moderator Moderator

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    i always say that they do it in shoe string budget and on sarkari salary, so it is great achievement.
     
  17. Kunal Biswas

    Kunal Biswas Member of the Year 2011 Moderator

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    What they did for infantry ?
     
  18. Blackwater

    Blackwater Veteran Member Veteran Member

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    nothing ..............
     

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