India Expects 5-7% Increase in Defense Spending

[Trichy]

India Expects 5-7% Increase in Defense Spending

NEW DELHI - Indian Finance Minister Pranab Mukherjee will announce the 2010-2011 defense spending proposal Feb. 26, with a 5 percent to 7 percent budget increase expected, Defence Ministry sources said.

The allocation for financial year 2009-10 is $28.9 billion.
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The Defence Ministry again will surrender nearly $1 billion of unspent funds, ministry sources said. The Defence Ministry has returned money each of the last three years as delays in finalizing contracts have prevented all the funds from being spent.

In the current year, most of the unspent money is tied to delays in completing a program to acquire 155mm howitzer guns.

Funding levels are not a problem for the ministry, said Mahindra Singh, a retired major general, but procurement delays remain a bottleneck.

 

[Trichy]

Budget 2010 Highlights

Highlights of 2010-11 budget presented by Finance Minister Pranab Mukherjee in parliament Friday:

-- Income up to Rs.1.6 lakh per year exempt from income tax; up to Rs.5 lakh to be taxed at 10 percent; income of Rs.5-8 lakh to be taxed at 20 percent and income above Rs.8 lakh to be taxed at 30 percent

-- IT returns forms for individual tax payers to be further simplified

-- Expenditure in 2010-11 estimated at 11,l8,749 crore

-- Fiscal deficit estimated at 5.5 percent in 2010-11; an improvement of 1 percent over 2009-10

-- Two more centralised tax processing centres to be set up in addition to the one at Bangalore

-- National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore

-- Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector

-- Exclusive skill development programme for the textile sector

-- Fifty percent hike in allocation for schemes for women and child development

-- Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent

-- Rs.2,600 crore allocated for ministry of minorities affairs

-- Rs.1,900 crore for Unique Identification Authority of India

-- Rs.147,344 crore allocated for defence

-- 2,000 youth to be recruited in central paramilitary forces

-- Draft Food Security Bill prepared and will be put in the public domain

-- Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore

-- Banking facilities to be provided to all habitations with a population of 2,000 and more

-- Rs.66,100 crore allocated for rural development in 2010-11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman

-- Rs.1,270 crore allocated for Rajiv Awas Yojana for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.

-- Forty-six percent of plan allocations in 2010-11 will be for infrastructure development

-- Coal Regulatory Authority to be set up to benchmark standards of performance

-- Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010-11

-- National Clean Energy Fund to be established

-- Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover

-- Government committed to growth of SEZs

-- Four-pronged strategy for growth of agricultural sector

-- Rs.200 crore to be provided in 2010-11 for climate-resilient agricultural initiative

-- Involvement of private sector in grain storage to continue for another two years

-- In view of drought and floods, debt repayment period extended to June 2010

-- Five more mega food processing projects in addition to 10 existing ones

-- FDI flows in April-December 2009 $20.9 billion

-- FDI policy to be made more user-friendly with one comprehensive document

-- Apex level financial stability council to be set up for banking sector

-- Indian Banking Association to give additional licences to private players

-- Provision for further capital for regional rural banks

-- Roadmap for reducing public debt in six months

-- Implementation of direct tax code from April 2011

-- Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011

-- New fertiliser policy from April 2010; will lead to improved productively and more income for farmers

-- Economy stabilised in first quarter of 2009-10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account

-- Export figures for January encouraging

-- Hope to breach 10 percent growth mark in not too distant future

-- Government set in motion steps to bring down food inflation

-- Need to review stimulus package; need to make growth more broad-based

-- India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in southwest monsoon had undermined agricultural production

-- First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased

-- Second challenge is to make growth more inclusive; have to strengthen food security

-- Third challenge is to overcome weakness in government's public delivery mechanism; a long way to go in this

 

[Trichy]

Mere four per cent hike in defence budget

The government today allocated Rs 1,47,344 crore towards defence in 2010-11 budget, a paltry 4 per cent increase from last year's Rs 1,41,703 crore.

Of the allocation provided, Rs 60,000 crore would go for capital expenditure, Finance Minister Pranab Mukherjee said presenting the Budget for 2010-11 in the Lok Sabha.

The four per cent increase in real terms would amount to only Rs 5,641 crore.

Last year, the government had provided a steep hike of about 34 per cent for the defence working out to an increase of Rs 36,103 crore.

Mukherjee, however, said considering the importance of defence of the country, more funds would be provided on the basis of requirements in the future.

The defence allocation continues to hover over 2.5 per cent of the GDP, though there have been suggestions to increase it substantially in view of the prevailing security situation.

 

[DMLA]

The huge increase last year seems to have made this possible. I am happy that PM has increased the allocation for infrastructure development & education substantially! Modifications to tax slabs should help inflation. All in all a good budget!

 

[Raje amar]

ya seems prity good to me. also the rail budget went good too.

 

[Trichy]

I think the budget increase is very low, what you think guys...?

 

[LCA Tejas]

I think the budget increase is very low, what you think guys...?

hey how much is the defense budget in terms of US$

 

[Marxist]

I think the budget increase is very low, what you think guys...?

percentage of increase is low,budget allocation equals to 31.7 Billion$ ...so is it that much low

 

[notsuperstitious]

Yes, the 4% increase must be looked at in the context of last yr's increase. So far none of the three services have complained about lack of money.

The income tax move is sweet, shows that our system works, compared to the other states in the region.

 

[LCA Tejas]

percentage of increase is low,budget allocation equals to 31.7 Billion$ ...so is it that much low

yeah, its toooooooooo low dude... only 31.7 b$..

 

[DMLA]

I think the budget increase is very low, what you think guys...?

The allocation should be commensurate with the requirements. We all know that with AKA at the helm of affairs as far as defence goes, the capital expenditure allocation (close to $12 billion) will likely not be utilized fully. So how does it matter? It is obvious that the proposed projects (and corresponding allocations) have been catered for!

 

[syntax_error]

147000 Cr = 31708372969 USD
so its 31.7 Billion .... so around 3 % again ...
This should stop a lot of rant form numerous ppl bout India's God knows x% of GDP for Defence

 

[Raje amar]

yeah, its toooooooooo low dude... only 31.7 b$..

Dude, its not that bad, we cant pore all the money on defence only.

for me its prity balanced.

 

[Kinshuk]

That's quite acceptable budget. Can someone please advise as in if the 200 billion $ target for new acquisition is part of this budget?

Thanks is advance.

 

[LCA Tejas]

Dude, its not that bad, we cant pore all the money on defence only.

for me its prity balanced.

yeah probably its enough... well anyways we are getting more than what we need, so we are happy aslong as that continues