Vote on Account 2014: Defence spending seen rising 10% to $36 billion

[ladder]

Vote on Account 2014: Defence spending seen rising 10% to $36 billion in 2014/15

NEW DELHI, Defence spending is expected to rise 10 per cent to Rs 2.24 lakh crore ($36 billion) in 2014/15, Finance Minister P Chidambaram said in an interim budget presented on Monday.

India is a top market for defence hardware, buying some $12.7 billion in arms during 2007-2011, according to the Stockholm International Peace Research Institute.

Read more at:
Vote on Account 2014: Defence spending seen rising 10% to $36 billion in 2014/15 - The Economic Times

Read more at:
Vote on Account 2014: Defence spending seen rising 10% to $36 billion in 2014/15 - The Economic Times

 

[sesha_maruthi27]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

Will the money be used entirely or will it be given back like the last time.?

 

[Blackwater]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

Will the money be used entirely or will it be given back like the last time.?

true ,2014 will also year of tenders

 

[SajeevJino]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill



from above article

India is a top market for defence hardware, buying some $12.7 billion in arms during 2007-2011

Only $12.7 Billion in 4 years ..I thing The US alone gets 12.7 billions these years

 

[ladder]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

Will the money be used entirely or will it be given back like the last time.?

I don't think there is any cutback in FY 13-14, unlike FY 12-13. Cut back for FY 14-15 ( the OP article) can't be predicted.

 

[ladder]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

true ,2014 will also year of tenders

And trials. Summer, winter, spring and autumn trials for indigenous products.

 

[sunny_10]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

hmmmm, in dollar terms its little less than the previous one, along with 7% inflation too :ranger:

and the way Capital Expenditure has share of around 30%+ in total expenditure, while dollar has fallen by around 15% since March 2013, when it was maintained at 1.0US$= Rs54, around, this increase is not on accounting........

 

[SajeevJino]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

@sunny_10 that's the truth

they hiked 10% budget ..But the Rupee value against Dollar makes around 30 billions only

The value of Indian currency has fallen sharply in the 2013/14 fiscal year, reducing actual defense budget of $37.7 billion down to roughly $30 billion. Moreover, a large part of the proposed hike is going towards the retirement benefits of defense personnel, a critical electoral group the government wants to woo ahead of the general elections.

Israel-India defense trade: strategy for tough times | Vijeta Uniyal | Ops & Blogs | The Times of Israel

Thanks to my good Friend Vijeta Uniyal

 

[sunny_10]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

@sunny_10 that's the truth

they hiked 10% budget ..But the Rupee value against Dollar makes around 30 billions only

Thanks to my good Friend Vijeta Uniyal

i remember last year Capital Expenditure was around Rs 80,000 crore, and around 70% arm buying is done from the foreign suppliers. even if T90, SU30mki etc have home production lines, currently supplied Transport Aircrafts of US, C17 etc, for example, are on direct arrival, hence you have to only pay dollar, nothing getting invested back......

this way, the above 80k crore Capital Expenditure would be reduce by a good margin in dollar term as Rupees have been devaluation by 15%+ since March 2013, while inflation at closed to 7% does have an impact on the domestic expanses too..... this 10% rise in defence would only keep the things running as it is, if not lesser, hopefully :ranger:

 

[ladder]

Re: Vote on Account 2014: Defence spending seen rising 10% to $36 bill

Defence spend lowest since 1962 war

Beneath the bland 10 per cent rise in defence allocations in the interim Budget presented in Parliament on February 17 is the uncomfortable reality that Indian defence spending will touch a 52-year low in 2014-15, in terms of percentage of gross domestic product (GDP) -1.74 per cent of GDP this year, and 12.7 per cent of government spending. The last time defence allocation was lower was 1962, when the military got 1.5 per cent of the GDP, in keeping with the trend through the 1950s. The Chinese attack in October 1962 led to emergency imports, raising defence expenditure to 2.32 per cent that year. Since then, this year's allocation is the lowest.

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Defence spend lowest since 1962 war | Business Standard