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News Update:
Indian Panel Urges Defense Spending Boost
By VIVEK RAGHUVANSHI, NEW DELHI
Ref:http://defensenews.com/story.php?F=2759893&C=asiapac
The Indian Parliamentâs Select Committee on Defence has called for a substantial increase in defense spending, saying in its latest report that the Finance Ministry has shortchanged the Defence Ministry.
The committee says defense spending should rise from the 2006-07 level of about 2.1 percent of gross domestic product (GDP) to 3 percent.
The 174-page âStanding Committee on Defence, 16th Report,â submitted to parliament for debate April 28, notes the panelâs concerns that defense spending âsince 2004-05 as a percentage of GDP has continuously declined. Defence outlay during 2006-07 was 2.1 percent of GDP. During 2007-08, the percentage of Defence outlay to GDP has been further reduced to 2.07 percent.â
Defense News has a copy of the committeeâs report.
The defense budget for 2007-08 is $22.86 billion. Three percent of GDP would bring defense spending to $33.09 billion.
The report recommends the Defence Ministry urge the Finance Ministry to provide at least 3 percent of GDP annually to cover the cost of defense modernization and acquisition.
A senior Army official said 3 percent of GDP, an additional $10.3 billion for the military in the 2007-08 fiscal year, would meet the serviceâs upgrade and acquisition needs.
While officials from the other services would not comment for this report, they have said privately that they share the Army officialâs concerns. Since 1991-92, defense spending has hovered around 2.5 percent of GDP, and defense planners have been pleading for several years for it to rise to the levels spent by China and Pakistan.
The Army official said the serviceâs requirements are not being met. Officials had asked for $11.86 billion for the current year but only received $10.8 billion, the official said.
A Defence Ministry official said the ministry asked for a total of $24.74 billion for 2007-08, but only $22.85 billion was approved.
The Defence Ministry official, however, said the current allocation of funds is adequate, and that Finance has assured Defence officials that more funds would be made available if military readiness was a concern.
The Standing Committee on Defence disagreed, saying in its report that the armed forces should be given the amount they projected was needed so modernization and acquisition programs âmay not face any resource crunch and adversely affect the countryâs defense preparedness.â
Parliamentarians will examine the committeeâs report, the Defence Ministry official said, but its recommendations are not binding on the ministry. However, the ministry must report to the parliament on any actions taken as a result of those recommendations.
Major acquisitions now in the pipeline include, for the Air Force, the $9 billion purchase of 126 Multirole Medium-Range Combat Aircraft for the Air Force; advanced UAVs, and transport helicopters from the United States; and advanced missiles and air defense systems. Major Army procurements include 155mm self-propelled guns, air defense systems and network-centric warfare equipment. The Navy wants to buy advanced submarines, stealthy ships, maritime surveillance aircraft, a satellite and three aircraft carriers. â¢
News Update:
Indian Panel Urges Defense Spending Boost
By VIVEK RAGHUVANSHI, NEW DELHI
Ref:http://defensenews.com/story.php?F=2759893&C=asiapac
The Indian Parliamentâs Select Committee on Defence has called for a substantial increase in defense spending, saying in its latest report that the Finance Ministry has shortchanged the Defence Ministry.
The committee says defense spending should rise from the 2006-07 level of about 2.1 percent of gross domestic product (GDP) to 3 percent.
The 174-page âStanding Committee on Defence, 16th Report,â submitted to parliament for debate April 28, notes the panelâs concerns that defense spending âsince 2004-05 as a percentage of GDP has continuously declined. Defence outlay during 2006-07 was 2.1 percent of GDP. During 2007-08, the percentage of Defence outlay to GDP has been further reduced to 2.07 percent.â
Defense News has a copy of the committeeâs report.
The defense budget for 2007-08 is $22.86 billion. Three percent of GDP would bring defense spending to $33.09 billion.
The report recommends the Defence Ministry urge the Finance Ministry to provide at least 3 percent of GDP annually to cover the cost of defense modernization and acquisition.
A senior Army official said 3 percent of GDP, an additional $10.3 billion for the military in the 2007-08 fiscal year, would meet the serviceâs upgrade and acquisition needs.
While officials from the other services would not comment for this report, they have said privately that they share the Army officialâs concerns. Since 1991-92, defense spending has hovered around 2.5 percent of GDP, and defense planners have been pleading for several years for it to rise to the levels spent by China and Pakistan.
The Army official said the serviceâs requirements are not being met. Officials had asked for $11.86 billion for the current year but only received $10.8 billion, the official said.
A Defence Ministry official said the ministry asked for a total of $24.74 billion for 2007-08, but only $22.85 billion was approved.
The Defence Ministry official, however, said the current allocation of funds is adequate, and that Finance has assured Defence officials that more funds would be made available if military readiness was a concern.
The Standing Committee on Defence disagreed, saying in its report that the armed forces should be given the amount they projected was needed so modernization and acquisition programs âmay not face any resource crunch and adversely affect the countryâs defense preparedness.â
Parliamentarians will examine the committeeâs report, the Defence Ministry official said, but its recommendations are not binding on the ministry. However, the ministry must report to the parliament on any actions taken as a result of those recommendations.
Major acquisitions now in the pipeline include, for the Air Force, the $9 billion purchase of 126 Multirole Medium-Range Combat Aircraft for the Air Force; advanced UAVs, and transport helicopters from the United States; and advanced missiles and air defense systems. Major Army procurements include 155mm self-propelled guns, air defense systems and network-centric warfare equipment. The Navy wants to buy advanced submarines, stealthy ships, maritime surveillance aircraft, a satellite and three aircraft carriers. â¢
