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I find it rather disgusting that we cut numbers in order to fund the procurement budget but India can jack it 17% with no fuss.
17% hike in India's defence spending
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Tolaha
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Dont you worry. Most of that increase will probably end in French pockets, atleast for the next few years. You can hold on to your Thales shares for a few more years!
pmaitra
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You can get a brand new Dragunov for $500 in the US. So, I would place that price at Rs. 25,000.
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A regular Insas Cost 450USD, Dont know what is the price now..
thakur_ritesh
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It isnt a 17% hike but a 13(+)% hike in rupee terms.
Interestingly the IA and the IAF are insisting that there wont be any surrender of the allocated budget this fiscal ('11-'12) with the IN already having utilized the allocated budget.
I was really surprised to learn that a part of revenue budget, unlike other budgets, in case of defence budget gets used up for equipment purchase. The other surprising thing was that the yearly increase in Indian defence budget remains highly predictable. This lady in an interview prior to the budget had put a figure of 10% hike in revenue budget, 10-20% in capital expenditure, and over all 12-14% increase and so was the case.
Interestingly the IA and the IAF are insisting that there wont be any surrender of the allocated budget this fiscal ('11-'12) with the IN already having utilized the allocated budget.
I was really surprised to learn that a part of revenue budget, unlike other budgets, in case of defence budget gets used up for equipment purchase. The other surprising thing was that the yearly increase in Indian defence budget remains highly predictable. This lady in an interview prior to the budget had put a figure of 10% hike in revenue budget, 10-20% in capital expenditure, and over all 12-14% increase and so was the case.
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India's defence budget shows absence of strategic vision, says Commodore (Retd) C Uday Bhaskar
20 Mar, 2012, 11.21AM IST, IANS
The Indian defence expenditure for the financial year 2012-13 has been budgeted at a fairly high figure of Rs 193,407 crore (budgeted expenditure, or BE) which converts to $38.5 billion and is not unreasonable -- but is well below China's corresponding figure of $100 billion.
However, to get a true sense of how this translates into tangible Indian military capacity, this allocation is to be seen in relation to the revised expenditure (RE) for the last fiscal that was announced as Rs 170,937 crore ($34 billion). The increase thus is of the order of 13 percent from the actual amount spent in 2011-12.
However, this is only one perspective, for the BE for 2011-12 was Rs 164,415 crore ($32.7 billion) and this was revised by over Rs 6,000 crore to reach almost Rs 171,000 crore. The Indian defence expenditure is broadly divided into two heads - the revenue and capital components - with the latter accounting for acquisition of new equipment and inventory items, as also modernisation of existing platforms. Ideally, a 50:50 ratio, or even a marginally greater amount for the capital head, would be the most desirable norm - but in the Indian case, since the military machine is largely manpower intensive, the opposite pattern prevails - meaning that the revenue component is higher.
Thus for the current fiscal - 2012-13 -- the total revenue expenditure is budgeted to be Rs 113,829 crore, while the total capital outlay is pegged at Rs 79,578 crore. Paradoxically, in the last fiscal, 2011-12, the capital expenditure was planned for a total of Rs 69,199 crore - but the actual expenditure as announced in the budget documents presented on March 16 was of the order of Rs 66,143 crore. In other words, the defence ministry surrendered Rs 3,056 crore as unspent from its capital head - and this is reflective of the inability to arrive at swift and objective decisions that will contribute to laying a strong foundation for capacity-building of the Indian military profile.
But then the question that arises is where did the increased expenditure occur over the last year? The increase from BE to RE for the last fiscal, 2011-12, is of the order of Rs 6,522 crore and this was expended in the revenue component, which along with the unspent capital amount of Rs 3,056 crore offers an insight into the trends that characterise India's defence expenditure.
The lack of a clear strategic focus is evident when the spending pattern of the last decade is examined in some detail. On the one hand, the revenue expenditure is closer to 60 percent against the capital head, even when allocated amounts remain unspent - except in the last fiscal - which was an exception to the general trend. The lack of a strategic underpinning is evident when a very anomalous situation obtains, in that capital funds are returned as unspent when the Indian military across the board is in dire need of modernisation of critical equipment and platforms.
For instance, the Indian Army has been seeking to replace the old Bofors gun - the mainstay of the artillery for well over a decade -- but to little avail. Given the kickback allegations and related political scandal going back to the Rajiv Gandhi years (mid-1980s), the Indian higher decision-making system remains inert or is in eternal slow motion. Thus 25 years after the Bofors scandal broke and a decade after the Kargil War, the Indian Army is yet to get a replacement for its artillery gun!
India's defence budget shows absence of strategic vision, says Commodore (Retd) C Uday Bhaskar - The Economic Times
20 Mar, 2012, 11.21AM IST, IANS
The Indian defence expenditure for the financial year 2012-13 has been budgeted at a fairly high figure of Rs 193,407 crore (budgeted expenditure, or BE) which converts to $38.5 billion and is not unreasonable -- but is well below China's corresponding figure of $100 billion.
However, to get a true sense of how this translates into tangible Indian military capacity, this allocation is to be seen in relation to the revised expenditure (RE) for the last fiscal that was announced as Rs 170,937 crore ($34 billion). The increase thus is of the order of 13 percent from the actual amount spent in 2011-12.
However, this is only one perspective, for the BE for 2011-12 was Rs 164,415 crore ($32.7 billion) and this was revised by over Rs 6,000 crore to reach almost Rs 171,000 crore. The Indian defence expenditure is broadly divided into two heads - the revenue and capital components - with the latter accounting for acquisition of new equipment and inventory items, as also modernisation of existing platforms. Ideally, a 50:50 ratio, or even a marginally greater amount for the capital head, would be the most desirable norm - but in the Indian case, since the military machine is largely manpower intensive, the opposite pattern prevails - meaning that the revenue component is higher.
Thus for the current fiscal - 2012-13 -- the total revenue expenditure is budgeted to be Rs 113,829 crore, while the total capital outlay is pegged at Rs 79,578 crore. Paradoxically, in the last fiscal, 2011-12, the capital expenditure was planned for a total of Rs 69,199 crore - but the actual expenditure as announced in the budget documents presented on March 16 was of the order of Rs 66,143 crore. In other words, the defence ministry surrendered Rs 3,056 crore as unspent from its capital head - and this is reflective of the inability to arrive at swift and objective decisions that will contribute to laying a strong foundation for capacity-building of the Indian military profile.
But then the question that arises is where did the increased expenditure occur over the last year? The increase from BE to RE for the last fiscal, 2011-12, is of the order of Rs 6,522 crore and this was expended in the revenue component, which along with the unspent capital amount of Rs 3,056 crore offers an insight into the trends that characterise India's defence expenditure.
The lack of a clear strategic focus is evident when the spending pattern of the last decade is examined in some detail. On the one hand, the revenue expenditure is closer to 60 percent against the capital head, even when allocated amounts remain unspent - except in the last fiscal - which was an exception to the general trend. The lack of a strategic underpinning is evident when a very anomalous situation obtains, in that capital funds are returned as unspent when the Indian military across the board is in dire need of modernisation of critical equipment and platforms.
For instance, the Indian Army has been seeking to replace the old Bofors gun - the mainstay of the artillery for well over a decade -- but to little avail. Given the kickback allegations and related political scandal going back to the Rajiv Gandhi years (mid-1980s), the Indian higher decision-making system remains inert or is in eternal slow motion. Thus 25 years after the Bofors scandal broke and a decade after the Kargil War, the Indian Army is yet to get a replacement for its artillery gun!
India's defence budget shows absence of strategic vision, says Commodore (Retd) C Uday Bhaskar - The Economic Times
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India's defence budget hike worrisome: Pakistani daily
IANS Mar 19, 2012, 12.03PM IST
ISLAMABAD: The significant hike in India's defence budget gives a "wrong message to its neighbours and perpetuates tensions in South Asia", a leading Pakistani daily said on Monday.
An editorial in the Dawn said that India's neighbours "must be alarmed" by yet another, sizeable rise in its defence budget, which is at a whopping $38.6 billion.
Indian Finance Minister Pranab Mukherjee, while presenting the budget Friday, said the allocation was based "on the present needs" and that the government would meet any "further needs for the security of the nation".
The daily said that the 17 percent increase (13 percent in real terms) seeks to add to the nuclear and conventional military muscles of a country that already has one of the world's largest armed forces.
"...Already having a nuclear triad, India is upgrading 51 Mirage 2000 fighter jets, is negotiating a $20bn deal with France for the purchase of 126 Rafale multi-role combat aircraft, working on a government-to-government agreement with the US for 145 ultra-light howitzers, and has ordered 49 new warships for the navy.
"Clearly, this phenomenal rise goes far beyond India's legitimate security needs and adds to the neighbours' concerns about New Delhi's hegemonic ambitions," it said.
Sounding a word of caution, the daily remarked that India's economic development should not make its policymakers "oblivious to the needs of their people".
"Despite the rapid expansion of its middle class, India suffers from grinding poverty and has the world's largest concentration of illiterate people."
"The hike in India's military budget thus gives the wrong message to its neighbours and perpetuates tensions in South Asia. The neighbours' concerns are not baseless, because India is not on the best of terms with them, and it has a history of military conflicts with Pakistan and China," the editorial added.
India's defence budget hike worrisome: Pakistani daily - Economic Times
typical paki fear...
IANS Mar 19, 2012, 12.03PM IST
ISLAMABAD: The significant hike in India's defence budget gives a "wrong message to its neighbours and perpetuates tensions in South Asia", a leading Pakistani daily said on Monday.
An editorial in the Dawn said that India's neighbours "must be alarmed" by yet another, sizeable rise in its defence budget, which is at a whopping $38.6 billion.
Indian Finance Minister Pranab Mukherjee, while presenting the budget Friday, said the allocation was based "on the present needs" and that the government would meet any "further needs for the security of the nation".
The daily said that the 17 percent increase (13 percent in real terms) seeks to add to the nuclear and conventional military muscles of a country that already has one of the world's largest armed forces.
"...Already having a nuclear triad, India is upgrading 51 Mirage 2000 fighter jets, is negotiating a $20bn deal with France for the purchase of 126 Rafale multi-role combat aircraft, working on a government-to-government agreement with the US for 145 ultra-light howitzers, and has ordered 49 new warships for the navy.
"Clearly, this phenomenal rise goes far beyond India's legitimate security needs and adds to the neighbours' concerns about New Delhi's hegemonic ambitions," it said.
Sounding a word of caution, the daily remarked that India's economic development should not make its policymakers "oblivious to the needs of their people".
"Despite the rapid expansion of its middle class, India suffers from grinding poverty and has the world's largest concentration of illiterate people."
"The hike in India's military budget thus gives the wrong message to its neighbours and perpetuates tensions in South Asia. The neighbours' concerns are not baseless, because India is not on the best of terms with them, and it has a history of military conflicts with Pakistan and China," the editorial added.
India's defence budget hike worrisome: Pakistani daily - Economic Times
typical paki fear...
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India's defence budget: absence of strategic vision
March 20, 2012
The Indian defence expenditure for the financial year 2012-13 has been budgeted at a fairly high figure of Rs.193,407 crore (budgeted expenditure, or BE) which converts to $38.5 billion and is not unreasonable -- but is well below China''s corresponding figure of $100 billion. However, to get a true sense of how this translates into tangible Indian military capacity, this allocation is to be seen in relation to the revised expenditure (RE) for the last fiscal that was announced as Rs.170,937 crore ($34 billion). The increase thus is of the order of 13 percent from the actual amount spent in 2011-12.
However, this is only one perspective, for the BE for 2011-12 was Rs.164,415 crore ($32.7 billion) and this was revised by over Rs.6,000 crore to reach almost Rs.171,000 crore. The Indian defence expenditure is broadly divided into two heads - the revenue and capital components - with the latter accounting for acquisition of new equipment and inventory items, as also modernisation of existing platforms. Ideally, a 50:50 ratio, or even a marginally greater amount for the capital head, would be the most desirable norm - but in the Indian case, since the military machine is largely manpower intensive, the opposite pattern prevails - meaning that the revenue component is higher.
Thus for the current fiscal - 2012-13 -- the total revenue expenditure is budgeted to be Rs 113,829 crore, while the total capital outlay is pegged at Rs 79,578 crore. Paradoxically, in the last fiscal, 2011-12, the capital expenditure was planned for a total of Rs 69,199 crore - but the actual expenditure as announced in the budget documents presented on March 16 was of the order of Rs 66,143 crore. In other words, the defence ministry surrendered Rs 3,056 crore as unspent from its capital head - and this is reflective of the inability to arrive at swift and objective decisions that will contribute to laying a strong foundation for capacity-building of the Indian military profile.
But then the question that arises is where did the increased expenditure occur over the last year? The increase from BE to RE for the last fiscal, 2011-12, is of the order of Rs.6,522 crore and this was expended in the revenue component, which along with the unspent capital amount of Rs 3,056 crore offers an insight into the trends that characterise India''s defence expenditure.
The lack of a clear strategic focus is evident when the spending pattern of the last decade is examined in some detail. On the one hand, the revenue expenditure is closer to 60 percent against the capital head, even when allocated amounts remain unspent - except in the last fiscal - which was an exception to the general trend. The lack of a strategic underpinning is evident when a very anomalous situation obtains, in that capital funds are returned as unspent when the Indian military across the board is in dire need of modernisation of critical equipment and platforms.
For instance, the Indian Army has been seeking to replace the old Bofors gun - the mainstay of the artillery for well over a decade -- but to little avail. Given the kickback allegations and related political scandal going back to the Rajiv Gandhi years (mid-1980s), the Indian higher decision-making system remains inert or is in eternal slow motion. Thus 25 years after the Bofors scandal broke and a decade after the Kargil War, the Indian Army is yet to get a replacement for its artillery gun!
Decision-making remains paralysed since the major political parties have chosen to attack one another over corruption and transgression issues - from Bofors to coffin scams - and as a result, India''s military capacity has glaring gaps. Defence expenditure and budget allocation is held accountable to strict compliance with audit regulations and fear of politically-motivated investigations and hence no senior official in the Ministry of Defence wants to take long-term decisions that will benefit national military capability-building.
India''s total defence allocation can also be viewed in the regional context -- while the current allocation for this year is closer to $40 billion, the Chinese defence budget announced recently is closer to $100 billion. While India does not seek equivalence with China, the pattern of defence allocation and the priorities set by the political leadership is a contrast.
Since the end of the Cold War in 1991, Beijing has set itself the task of acquiring credible indigenous design and production capabilities in the defence and military domain - and also utilised its domestic industrial base to advantage. India, on the other hand, has the dubious distinction of becoming the world''s leading arms importer over the last decade. Much of the funding from the capital head goes to foreign suppliers and over the last 20 years, Indian funding has proved crucial to the very survival of certain defence industries -- first in Russia and now in France.
It is regrettable that the defence expenditure is rarely discussed in parliament despite being a reasonably large amount - and where debates do occur, they are zero sums games between bitter political opponents.
It merits recall that over the last decade, two high-powered committees have rendered their reports - the Kelkar and the Rama Rao panels - about the challenges to India''s acquisition procedures and the need for a rigorous defence public sector/DRDO review. However, both reports remain shrouded in secrecy - and have not come up for detailed discussion in parliament or in the national trade and commerce chambers.
If examined in an objective manner, where everyone is a stakeholder in contributing to national security, some embarrassing truths will be revealed. More than 60 years after becoming a republic and 50 years after the debacle with China, the opaque Indian defence production establishment does not produce high-quality clothing and personal inventory items like boots - let alone a suitable rifle for a one million army, or tanks and aircraft. The question that Defence Minister A.K. Antony may like to ask is why the stoic Indian jawan still buys his uniform from the market and shuns what the government provides?
Fiscal allocations by themselves tell a partial story. Creating appropriate military capacity requires a certain degree of political commitment and institutional integrity that appear elusive in the Indian context.
Indian Defence News - India's defence budget: absence of strategic vision
March 20, 2012
The Indian defence expenditure for the financial year 2012-13 has been budgeted at a fairly high figure of Rs.193,407 crore (budgeted expenditure, or BE) which converts to $38.5 billion and is not unreasonable -- but is well below China''s corresponding figure of $100 billion. However, to get a true sense of how this translates into tangible Indian military capacity, this allocation is to be seen in relation to the revised expenditure (RE) for the last fiscal that was announced as Rs.170,937 crore ($34 billion). The increase thus is of the order of 13 percent from the actual amount spent in 2011-12.
However, this is only one perspective, for the BE for 2011-12 was Rs.164,415 crore ($32.7 billion) and this was revised by over Rs.6,000 crore to reach almost Rs.171,000 crore. The Indian defence expenditure is broadly divided into two heads - the revenue and capital components - with the latter accounting for acquisition of new equipment and inventory items, as also modernisation of existing platforms. Ideally, a 50:50 ratio, or even a marginally greater amount for the capital head, would be the most desirable norm - but in the Indian case, since the military machine is largely manpower intensive, the opposite pattern prevails - meaning that the revenue component is higher.
Thus for the current fiscal - 2012-13 -- the total revenue expenditure is budgeted to be Rs 113,829 crore, while the total capital outlay is pegged at Rs 79,578 crore. Paradoxically, in the last fiscal, 2011-12, the capital expenditure was planned for a total of Rs 69,199 crore - but the actual expenditure as announced in the budget documents presented on March 16 was of the order of Rs 66,143 crore. In other words, the defence ministry surrendered Rs 3,056 crore as unspent from its capital head - and this is reflective of the inability to arrive at swift and objective decisions that will contribute to laying a strong foundation for capacity-building of the Indian military profile.
But then the question that arises is where did the increased expenditure occur over the last year? The increase from BE to RE for the last fiscal, 2011-12, is of the order of Rs.6,522 crore and this was expended in the revenue component, which along with the unspent capital amount of Rs 3,056 crore offers an insight into the trends that characterise India''s defence expenditure.
The lack of a clear strategic focus is evident when the spending pattern of the last decade is examined in some detail. On the one hand, the revenue expenditure is closer to 60 percent against the capital head, even when allocated amounts remain unspent - except in the last fiscal - which was an exception to the general trend. The lack of a strategic underpinning is evident when a very anomalous situation obtains, in that capital funds are returned as unspent when the Indian military across the board is in dire need of modernisation of critical equipment and platforms.
For instance, the Indian Army has been seeking to replace the old Bofors gun - the mainstay of the artillery for well over a decade -- but to little avail. Given the kickback allegations and related political scandal going back to the Rajiv Gandhi years (mid-1980s), the Indian higher decision-making system remains inert or is in eternal slow motion. Thus 25 years after the Bofors scandal broke and a decade after the Kargil War, the Indian Army is yet to get a replacement for its artillery gun!
Decision-making remains paralysed since the major political parties have chosen to attack one another over corruption and transgression issues - from Bofors to coffin scams - and as a result, India''s military capacity has glaring gaps. Defence expenditure and budget allocation is held accountable to strict compliance with audit regulations and fear of politically-motivated investigations and hence no senior official in the Ministry of Defence wants to take long-term decisions that will benefit national military capability-building.
India''s total defence allocation can also be viewed in the regional context -- while the current allocation for this year is closer to $40 billion, the Chinese defence budget announced recently is closer to $100 billion. While India does not seek equivalence with China, the pattern of defence allocation and the priorities set by the political leadership is a contrast.
Since the end of the Cold War in 1991, Beijing has set itself the task of acquiring credible indigenous design and production capabilities in the defence and military domain - and also utilised its domestic industrial base to advantage. India, on the other hand, has the dubious distinction of becoming the world''s leading arms importer over the last decade. Much of the funding from the capital head goes to foreign suppliers and over the last 20 years, Indian funding has proved crucial to the very survival of certain defence industries -- first in Russia and now in France.
It is regrettable that the defence expenditure is rarely discussed in parliament despite being a reasonably large amount - and where debates do occur, they are zero sums games between bitter political opponents.
It merits recall that over the last decade, two high-powered committees have rendered their reports - the Kelkar and the Rama Rao panels - about the challenges to India''s acquisition procedures and the need for a rigorous defence public sector/DRDO review. However, both reports remain shrouded in secrecy - and have not come up for detailed discussion in parliament or in the national trade and commerce chambers.
If examined in an objective manner, where everyone is a stakeholder in contributing to national security, some embarrassing truths will be revealed. More than 60 years after becoming a republic and 50 years after the debacle with China, the opaque Indian defence production establishment does not produce high-quality clothing and personal inventory items like boots - let alone a suitable rifle for a one million army, or tanks and aircraft. The question that Defence Minister A.K. Antony may like to ask is why the stoic Indian jawan still buys his uniform from the market and shuns what the government provides?
Fiscal allocations by themselves tell a partial story. Creating appropriate military capacity requires a certain degree of political commitment and institutional integrity that appear elusive in the Indian context.
Indian Defence News - India's defence budget: absence of strategic vision
p2prada
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Of course. Our hike alone is bigger than their entire defence budget, they have a reason to be alarmed.typical paki fear...
sesha_maruthi27
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In-spite of hiking the defence budget by 17% the ARMY CHIEF says that the entire fleet is working with obsolete equipment and the ARMY still does not have proper night vision capabilities. Is the CHIEF of THE ARMY lying or is the defence ministry not spending the money allotted to buy the equipment and eating away by getting sub standard equipment?
Shame on the Government Of India to remain silent about the equipment offered to the defence forces and still the home minister and the defence minister say that our defences forces are ready for anything. Think they expect the soldiers to fight with sticks and marbles to hurl around with in the case of a war.
Shame on the Government Of India to remain silent about the equipment offered to the defence forces and still the home minister and the defence minister say that our defences forces are ready for anything. Think they expect the soldiers to fight with sticks and marbles to hurl around with in the case of a war.
Hey guys,
Indian Defence have many responsilities to fullfill for the well being of the nation.So most of the hike is still going on in the defence department.
Forced tanks, weapons etc. are needed to the defence to save the nation.
Regards
master
Indian Defence have many responsilities to fullfill for the well being of the nation.So most of the hike is still going on in the defence department.
Forced tanks, weapons etc. are needed to the defence to save the nation.
Regards
master
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