India likely to sign $20 bn fighter jet deal only under next government

[jiki]

India likely to sign $20 bn fighter jet deal only under next government - Livemint

New Delhi: India will not sign a $20 billion deal to acquire fighter jets for the Indian Air Force till the next fiscal year, defence minister A.K. Antony said on Thursday, indicating it would be left to the next government to finalize the purchase.
“It has to wait for the next financial year starting 1 April,” Antony said.
India does not have the budget to buy the jets, Antony said. “Ninety-two per cent of our budget has already been used, with only 8% left,” he said.
India in January 2012 decided to buy 126 Rafale fighter jets from France’s Dassault Aviation after an extensive auction process, but the discussions have been delayed over various issues. In October, Reuters reported the deal was to be finalized by March.
Another reason for the delay in the award of the contract relates to life cycle costs, Antony said.
“MMRCA (medium multi-role combat aircraft) will materialize, only that (it will) not (in) this financial year but next financial year,” Antony said when asked if the government would buy Russian Sukhoi jets if the Rafale deal does not go through. “The negotiations on life cycle costs are continuing. I hope we are able to close it in next financial year.”
India is likely to hold its national election in April-May and since the election code of conduct is expected to kick-in by early March the deal is unlikely to be signed by the present government. No major policy or contracts can be announced 45 days before an election.

 

[帅的一匹]

Then tell me why the hell India goverment introduce the bidding when they don't have the budget to finance it ? I get confused!

 

[Koovie]

Then tell me why the hell India goverment introduce the bidding when they don't have the budget to finance it ? I get confused!

It has.... but doing it 3 months before general elections does not seem to be a good strategy

 

[Chinese-Dragon]

India does not have the budget to buy the jets, Antony said. “Ninety-two per cent of our budget has already been used, with only 8% left,” he said.

How does the Congress party expect to balance their budget, if they are spending so much money on their super-socialist schemes?

For the government budget, you have government revenue, and government spending.

It's easy to spend like crazy on schemes and subsidies, but where is the revenue coming from? What percentage of the population is even covered by the tax net?

Even if Modi wins the next elections, he is going to inherit a fiscal nightmare from the current administration.

 

[janon]

The better question is, why did India select the most expensive jet, instead of one that fits their budget? Cutting you cloth according to your purse and all that. The entire saga was a big mockery - spending some ten years to decide what to buy and then realizing that the choice is too expensive, all the while when the IAF is dangerously short of squadron strength. Sorry, but this is plain idiotic.

How does the Congress party expect to balance their budget, if they are spending so much money on their super-socialist schemes?

For the government budget, you have government revenue, and government spending.

It's easy to spend like crazy, but where is the revenue coming from? What percentage of the population is even covered by the tax net?

It is the compulsion of electoral politics. What brings more votes? 126 jets that nobody would hear about or know anything about, or doles like subsidized food for all? In either case, they are spending taxpayers money, not their own. This populist pandering is going to break the back of our economy, not to mention putting real needs like defence and infrastructure at risk.

 

[jiki]

India likely to sign $20 bn fighter jet deal only under next government - Livemint

New Delhi: India will not sign a $20 billion deal to acquire fighter jets for the Indian Air Force till the next fiscal year, defence minister A.K. Antony said on Thursday, indicating it would be left to the next government to finalize the purchase.
“It has to wait for the next financial year starting 1 April,” Antony said.
India does not have the budget to buy the jets, Antony said. “Ninety-two per cent of our budget has already been used, with only 8% left,” he said.
India in January 2012 decided to buy 126 Rafale fighter jets from France’s Dassault Aviation after an extensive auction process, but the discussions have been delayed over various issues. In October, Reuters reported the deal was to be finalized by March.
Another reason for the delay in the award of the contract relates to life cycle costs, Antony said.
“MMRCA (medium multi-role combat aircraft) will materialize, only that (it will) not (in) this financial year but next financial year,” Antony said when asked if the government would buy Russian Sukhoi jets if the Rafale deal does not go through. “The negotiations on life cycle costs are continuing. I hope we are able to close it in next financial year.”
India is likely to hold its national election in April-May and since the election code of conduct is expected to kick-in by early March the deal is unlikely to be signed by the present government. No major policy or contracts can be announced 45 days before an election.

Another of my dream got crushed..really filling very sad,

Next BJP will come and god knows who will be the next DM and again we have to sing from the beginning..may be quite less chance of materialization

 

[Koovie]

Another of my dream got crushed..really filling very sad,

Next BJP will come and god knows who will be the next DM and again we have to sing from the beginning..may be quite less chance of materialization

Here too :/

Not singing this deal is also going to hit confidence of other companies in India.

 

[kbd-raaf]

Every day, I hate Congress more.

They really are pursuing a scorched Earth policy, they know they're not going to win the next elections, so they're doing their best to make sure the next government can't perform as well as it should.

 

[Chinese-Dragon]

Every day, I hate Congress more.

They really are pursuing a scorched Earth policy, they know they're not going to win the next elections, so they're doing their best to make sure the next government can't perform as well as it should.

It does seem like they are deliberately trying to leave a huge mess for the next administration.

I mean Manmohan Singh is a world-renowned economist, he obviously knows exactly what to do, to fix the economy. But for political reasons he is keeping his mouth shut, and not doing anything to stop it.

 

[kaykay]

These congoons will spend all money for populist schemes like food bill etc to appease voters(who will never be benifited of those loot bills) but not for important defwnce deals. Hope nexe govt do it asap.

 

[Star Wars]

How does the Congress party expect to balance their budget, if they are spending so much money on their super-socialist schemes?

For the government budget, you have government revenue, and government spending.

It's easy to spend like crazy on schemes and subsidies, but where is the revenue coming from? What percentage of the population is even covered by the tax net?

Even if Modi wins the next elections, he is going to inherit a fiscal nightmare from the current administration.

Good thing is the money has not been alloted and the Food security bill which was passed can be simply extended to time immemorial... The money ahs not been lost as the bill itself is very incomplete on details

 

[jiki]

How does the Congress party expect to balance their budget, if they are spending so much money on their super-socialist schemes?

For the government budget, you have government revenue, and government spending.

It's easy to spend like crazy on schemes and subsidies, but where is the revenue coming from? What percentage of the population is even covered by the tax net?

Even if Modi wins the next elections, he is going to inherit a fiscal nightmare from the current administration.

quite true buddy some of ur analysis are more or less viable but we are a democracy and this is the atrocious side of it, unlike urs socialist style we have to go through a ample amount of legislative and executive procedure, where there is often impedance by bureaucracy for its smooth functioning.

I can say with full responsibility over here that due to this transparent system india always lags behind by china by 2% in every aspect, be it the economy , be ti the infrastructure or the military build up,as long as china is running smoothly.

Our last hope is that white beard man............

 

[帅的一匹]

To politicians of Congress, national security comes second after election.

 

[forcetrip]

These congoons will spend all money for populist schemes like food bill etc to appease voters(who will never be benifited of those loot bills) but not for important defwnce deals. Hope nexe govt do it asap.

It says that the Airforce has spent 92% of its budget, not congress. They just want to get the deal signed once they get the money for next year which also coincides with elections.

 

[Jade]

It does seem like they are deliberately trying to leave a huge mess for the next administration.

I mean Manmohan Singh is a world-renowned economist, he obviously knows exactly what to do, to fix the economy. But for political reasons he is keeping his mouth shut, and not doing anything to stop it.

Being a 'world renowned' economist is quite different from being a good administrator.

Manmohan Singh story remains me of the story of Long-Term Capital Management, a hedge fund started by Myron Scholes, and Robert Merton, both Nobel Prize winners in economics with their theories being cornerstones in hedge fund investment.

But Long-Term Capital Management utterly failed and got bankrupt in just three years

To understand how an economy works or on know how to accelerate economic growth you don't need to be 'world renowned' economist.