Defense budget 2017-18

[Adioz]

The defense budget for the year 2017-18 has been pegged at INR 2.75 lakh crore.

That comes out to be $40.72 billion.

That is a $10 billion decrease in the budget.

 

[captonjohn]

How copy? Defense budget last year was 2.58 lakh crore and this year budget is 2.75 lakh crore.

 

[Adioz]

How copy? Defense budget last year was 2.58 lakh crore and this year budget is 2.75 lakh crore.

AFAIK, last year, the budget was increased mid-year.

 

[mayfair]

How copy? Defense budget last year was 2.58 lakh crore and this year budget is 2.75 lakh crore.

According to IDSA it was 2.49 lakh crore for 2016-2017. This year it's 2.74 crore, an increase of 10%, surely not $10 billion.

Of the 2.74 lakh crores, 86,000 crores are for capital acquisition, roughly 28,000 crores each for IA, IAF and IN.

Is that enough?

 

[kunal1123]

The defense budget for the year 2017-18 has been pegged at INR 2.75 lakh crore.

That comes out to be $40.72 billion.

That is a $10 billion decrease in the budget.

that is after "Devoid of the pension outlay"

According to IDSA it was 2.49 lakh crore for 2016-2017. This year it's 2.74 crore, an increase of 10%, surely not $10 billion.

Of the 2.74 lakh crores, 86,000 crores are for capital acquisition, roughly 28,000 crores each for IA, IAF and IN.

Is that enough?

so true....................

 

[Kshatriya87]

The defense budget for the year 2017-18 has been pegged at INR 2.75 lakh crore.

That comes out to be $40.72 billion.

That is a $10 billion decrease in the budget.

That budget is excluding pension. With pension it will be higher.

 

[Kshatriya87]

Anyone know how much the pension of all defense personnel comes up to?

 

[AmoghaVarsha]

13bn for capital outlay.Do we have the number for last year?

 

[mayfair]

Anyone know how much the pension of all defense personnel comes up to?

Last year it was about pegged at ~55,000 crores but actual expenses were 60,000 crores, this year it has been upped to about 80,000 crores

 

[Adioz]

According to IDSA it was 2.49 lakh crore for 2016-2017. This year it's 2.74 crore, an increase of 10%, surely not $10 billion.

Of the 2.74 lakh crores, 86,000 crores are for capital acquisition, roughly 28,000 crores each for IA, IAF and IN.

Is that enough?

That is $4.14 billion for each service for a total of $12.42 billion.

 

[Chinmoy]

Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital

It means 2,74,114 + 80,000(crore)= 3,54,000 crore defence budget in total.

 

[lcafanboy]

Defence ministry allocation excluding pensions for this year is Rs 2.74 lk crore, out of which Rs 86000 cr for capital expense.

 

[Kshatriya87]

Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital

It means 2,74,114 + 80,000(crore)= 3,54,000 crore defence budget in total.

So this means $52 billion total budget with exchange rate of 68.

 

[tharun]

We need to reduce revenue expenditure to increase money for capital expenditure...

 

[Adioz]

Rs 2,74,114 crore allocated for defence expenditure, excluding pension; This includes Rs 86,000 crore for defence capital

It means 2,74,114 + 80,000(crore)= 3,54,000 crore defence budget in total.

That means a budget of $52.41 billion, as opposed to $51 billion last year.

We need to reduce revenue expenditure to increase money for capital expenditure...

Revenue expenditure was destined to increase due to 7th Pay Commision.
BTW, how do you propose we reduce revenue expenditure?

 

[Adioz]

Defence ministry allocation excluding pensions for this year is Rs 2.74 lk crore, out of which Rs 86000 cr for capital expense.
View attachment 13576

Is this for amount of funds released or the amount actually utilised?

 

[Kshatriya87]

We need to reduce revenue expenditure to increase money for capital expenditure...

I do not think that is possible. In fact, steps were taken a couple of years back to INCREASE revenue expenditure. No way they are rolling it back. This will lead to bad mindset towards gov. from central gov. employees and military personnel.

 

[Chinmoy]

Arun Jaitley raises defence budget by about 5.8% to Rs 2,74,000 crore

http://economictimes.indiatimes.com...t-to-rs-274000-crore/articleshow/56909480.cms

 

[tharun]

Revenue expenditure was destined to increase due to 7th Pay Commision.
BTW, how do you propose we reduce revenue expenditure?

I do not think that is possible. In fact, steps were taken a couple of years back to INCREASE revenue expenditure. No way they are rolling it back. This will lead to bad mindset towards gov. from central gov. employees and military personnel.

Thing is there is lot of wastage in the ministry of defense...like the we had lot of civil personal we can decrease the size of them etc....

 

[Adioz]

Arun Jaitley raises defence budget by about 5.8% to Rs 2,74,000 crore

http://economictimes.indiatimes.com...t-to-rs-274000-crore/articleshow/56909480.cms

This is interesting:-

The defence ministry has surrendered about Rs 35,000 crore from its capital allocation for the previous four years.

So how much of these CAPEX funds are actually utilised?

Also, I heard a news last year that some substantial amount of money which was paid to foreign suppliers (particularly in the US) was lying locked there and nothing was bought for that money. Parrikar was working out ways to unlock those funds to pay for future purchases form the US.

So its not as if extra civil staff is the bigger problem here. Its the way funds are managed. Before we cut flab by firing employees, we need better utilisation of funds that are released each year.

Thing is there is lot of wastage in the ministry of defense...like the we had lot of civil personal we can decrease the size of them etc....

Also, here is another interesting aspect:-

The 5.8% increase in the defense budget this year (excluding pensions) will barely meet inflation and salary hike requirements.

BTW, what is the budget of various CAPFs? Did they see a rise in CAPEX?