Defence modernization funds cut by Rs 10,000 crore

[Koovie]

Rafale: India ready to sign a contract - Salon Industrie 2013

Recent news MRCA on

This cut, if its gonna happen, wont affect the Rafale deal, but I doubt that the negotiations over.....

 

[jnreno75]

no one challenges sino challenger.....Please go for it.......come and take india...

 

[Koovie]

no one challenges sino challenger.....Please go for it.......come and take india...

Some one should make an account called Indochallenger and challenge him

 

[Screambowl]

doesn't matter if they have even cut it. . It will not hurdle the ongoing projects.

 

[IND151]

LOL this is just the beginnng. india has misspent and embezzled itself into an economic crisis. Partition is coming soon.

That's why india tried to attack Pakistan but was beaten badly again.

The original punchline of movie which is sequel of a hit movie in which Salman is Police officer, I am afraid, perfectly fits you.

On Topic> Lets wait for official sources to comment on the issue. But as some members already have pointed out, the amount worth same has been given to IAF. In this case, its not cut in total budget but cut in funds for IA.

 

[cloud_9]

In Fact, Mr. Ajai Shukla wrote an interesting article in year 2008 arguing that there is more to the defence budget than what meets the eye, acc. to him there are other figures which should be normally included in defence budget (acc. to the UN) but GOI/FM disperse it in various ministry's budgets, thus when we total it, it comes out thousands of crore more than what is usually called the defence budget of India:

Ajai Shukla: How much is the defence budget?



Mind u, these are 4 years old figures, if we take it for the 2012-13 fiscal than it should easily come out to be Rs. 2,50,000+ crore which is $ 46+ billions.

Border Fencing,Infrastructure & Management budget comes from the MHA's pocket not the Defence Budget.

 

[arp2041]

Border Fencing,Infrastructure & Management budget comes from the MHA's pocket not the Defence Budget.

That's the catch!!

According to the UN, these things should come under the Military Budget of a nation but our govt. conveniently slip it under the MHA's budget

 

[Abingdonboy]

That's the catch!!

According to the UN, these things should come under the Military Budget of a nation but our govt. conveniently slip it under the MHA's budget

I don't know about this bud, most developed nations have civil/govt (non-military) border agencies and border management. India is simply in line with them.

But yes, it is good that such things like this don't drain the MoD/military's pocket.

 

[arp2041]

I don't know about this bud, most developed nations have civil/govt (non-military) border agencies and border management. India is simply in line with them.

But yes, it is good that such things like this don't drain the MoD/military's pocket.

Chk. this link which i provided earlier in the thread:

Ajai Shukla: How much is the defence budget?

According to Mr. Shukla, our Defence Budget should have been 30k crore more than what officially declared in 2008, one can only guess how big it is now i.e. 2012-13 fiscal.

 

[Abingdonboy]

Chk. this link which i provided earlier in the thread:

Ajai Shukla: How much is the defence budget?

According to Mr. Shukla, our Defence Budget should have been 30k crore more than what officially declared in 2008, one can only guess how big it is now i.e. 2012-13 fiscal.

Agreed. The de-linking of all these budgets is very smart and very good news for India.

 

[cloud_9]

The size of the budget doesn't matter if you are just going to sit on files and issues tenders without follow-ups. Indian Defence forces do return a considerable chunk of their unspent budget back to the FinMin'ry.

The 15 per cent increase in the Capital Expenditure has resulted in an additional amount of Rs. 10,379.82 crore. Given that most of the Capital Expenditure is incurred on modernisation of the armed forces, it is vital to see how the increase would affect each of the services. It is however to be noted that the three services (Army, Navy and Air Force) account for 94 per cent (Rs. 74,439.95 crore) of total Capital Expenditure in 2012-13, with the Air Force at the top with a share of 38 per cent (Rs. 30,485.35 crore), followed by the Navy (31 per cent or Rs. 24,766.42 crore) and the Army (24 per cent or Rs. 19,188.18 crore). Of the total Capital Expenditure of the three services, around 89 per cent (Rs 66,459.43 crore) is earmarked for capital acquisition or modernisation.2 These impressive figures do not however reveal the complete story. A closer look at the growth of the modernisation budget of 2012-13 would reveal that the focus is entirely driven by the Navy, which has got a 72 per cent hike (to Rs. 24,151.51 crore) in its modernisation budget. The Air Force’s modernisation budget has increased marginally (by 0.5 per cent) to Rs. 28,503.9 crore, while the Army’s has declined by three per cent to Rs. 13,804.02 crore.

The marginal increase in the Air Force’s modernisation budget and the decrease in the Army’s do not seem to be in sync with their modernisation requirements. This is more so given the pending signing of some of the big-ticket contracts (including the multi-billion dollar Rafael), and the sharp devaluation of the Indian rupee against the US dollar. As regards the latter, although the rupee has appreciated from its lowest point in mid-December 2011, the present exchange rate, which is around fifty rupees to a dollar, is still high and, if it remains at the same level could further erode the import capacity of the acquisition budget.

When the defence budget 2011-12 was presented in February 2011, it gave an impression that the years of effort put in by the defence ministry to fine-tune its procurement process has finally yielded dividend. This impression now seems to be premature, as the defence ministry has once again come back to under-spending its capital budget. As the new budget reveals, of the total Capital Expenditure earmarked for 2011-12, Rs. 3,055 crore (4.41 per cent) has been surrendered at the time of revised estimate. The unspent amount could have been much higher if the Navy had not been allowed to overspend its allotted capital budget by Rs. 2801.25 crore (the Air Force and the Army together have surrendered Rs. 5,727.15 crore).

India Defence Budget

The military spending should be visible on the ground which in case of Army is pretty much invisible

 

[KS]

Now another budget cut Budget cut may delay mega science projects

Guess for what ?

Funding the Direct Cash Transfer scheme.

More such ponzi schemes are in the pipeline, economy be damned.

 

[Koovie]

Indian Finance Ministry Denies Reports of Budget Cuts

NEW DELHI — Contrary to media reports here that defense spending is likely to be reduced, sources in the Indian Finance Ministry sources said there is no such proposal before them to reduce defense allocations. to defense.

Indian Finance Ministry Denies Reports of Budget Cuts | Defense News | defensenews.com