Parliamentary panel slams defence ministry for not using funds for modernisation

[PARIKRAMA]

Parliamentary panel slams defence ministry for not using funds for modernisation
By Manu Pubby, ET Bureau | Feb 27, 2016, 01.44 AM IST

NEW DELHI: In a report, a key parliamentary panel has slammed the defence ministry for misleading it on underutilisation of the capital outlay that is earmarked for modernising the three armed forces and has expressed concerns that Budget cuts could have an adverse implication on national security.

The parliamentary standing committee on defence, which is led by senior BJP leader Maj Gen BC Khanduri, has come down strongly on the ministry for diverting money out from the capital acquisition head for other expenses and justifying it as 'not lapsed'.

"The Action Taken Note is misleading on the reasons attributable for the underutilisation of the capital outlay, which, as highlighted by the committee is substantial viz, Rs 720.41 crore for the year 2013-14," a new report tabled in Parliament on Friday says. As reported by ET, in the current financial year also, capital funds are likely to lapse with only 75 per cent of the defence budget exhausted till the end of January.

The ministry is also likely to cut down Rs 12,400 crore from its capital acquisition Budget this year and transfer it to other heads as revenue expenses have zoomed.

Additionally, the defence pension's outlay has also jumped considerably after the implementation of the One Rank One Pension scheme with the Pension Bill in the 2016-17 financial year expected to exceed Rs 82000 crore. This could potentially result in the Pension Bill exceeding the capital acquisition allocation in the coming Budget.

The Parliament panel has condemned the practice of transferring funds to different heads towards the end of the year as capital acquisitions do not go through.

"It is evident that the budgetary allocation that is underspent has been diverted to non-priority or nonessential heads of account and shown as 'not-lapsed'. The committee entirely disapproves this approach of the ministry in treating the Capital Outlay," the report says.

Parliamentary panel slams defence ministry for not using funds for modernisation - The Economic Times
++
@Abingdonboy
look at the situation.. The truth finally is out.. We had been saying for so long how Indian Defense Budget is under utilized versus allotted amounts and now we know where it goes

"It is evident that the budgetary allocation that is underspent has been diverted to non-priority or nonessential heads of account and shown as 'not-lapsed'."



@MilSpec @AUSTERLITZ @nair @Levina @ranjeet @Roybot @Ankit Kumar @cerberus @knight11
@all others

 

[Ankit Kumar]

Who else want DM replaced?And babus too.

Why is it that Defence ministry is not showing results like Coal , Power, Roads and Railways?

 

[Abingdonboy]

@Abingdonboy
look at the situation.. The truth finally is out.. We had been saying for so long how Indian Defense Budget is under utilized versus allotted amounts and now we know where it goes

"It is evident that the budgetary allocation that is underspent has been diverted to non-priority or nonessential heads of account and shown as 'not-lapsed'."

Is this really news to anyone? It's is worrying if this is the first time the polticans have caught on to the accounting tricks the military starts to play towards the end of the FY.

This has been a common practice for a long time and who are the worst offenders? Who has BY FAR the largest revenue/OPEX commitment? The IA!!

Damn it, it's despicable.

1) Cut the IA's manpower by 30%
2) Reduce the red tape in procurements
3) Increase descretionary spending powers of brigade commanders
4) Create the CDS post
5) Subsequently start pooling procurements so that one system can serve in mulitple branches as opposed to the absurd system there currently is where they all have similar requirements but intiate indepdenant procurements and often select different products for the same requirement

DPP 2016 will only partially address the problems but the rot goes far deeper than that and requires invasive procedures.

This is why I get really mad when I see people complaining about being the "world's largest importer" of mil equipment as even this isn't enough! If you stopped importing the military would be entirely useless.


Literally

Who else want DM replaced?And babus too.

Why is it that Defence ministry is not showing results like Coal , Power, Roads and Railways?

Seconded.

Mr Parrikar has a big mouth on everything except for his actual portfolio, almost everything he has promised has come very very late or not at all and he has failed to create any sort of narrative that inspires confidence in him. I still haven't heard him mention anything about the three proposed tri-service commands even though th emilitary has said they have done everything to lay the groundwork and are simply waiting on a greenlight from the MoD. And the less said about his comments on the Rafale the better, he is making India look like a farce and projecting himself as out of his depth.


@Taygibay @ranjeet @anant_s @Star Wars @arp2041 @noksss @skyisthelimit @ito @Parul @Koovie @Water Car Engineer @AUSTERLITZ

 

[raktaka]

Certainly looks bad for DM MP. I hope he realizes that returning unspent amount means he has failed as the DM of India. At least he should declare a target to reduce it the next fiscal.


No point in comparing him to CONgress DM, we hold him up to a much higher standard. He needs to step up and deliver.

 

[Piper]

Lean and Mean folks, lean and mean! While India does have low cost manpower advantage but the requirements of this age and era are different and is not manpower heavy. There aren't going to be any mass invasions nor does India have a expeditionary foreign policy so why such an ill equipped huge army?

Cut down your strength to 500K and invest the savings in kitting them properly and training them in CT operations, quick deployment, penetration and extraction tactics. Holding actions are a thing of past - just look at how Russians are rolling these days!

 

[randomradio]

MoD has been doing this for decades.

 

[dadeechi]

MoD has been doing this for decades.

True. But people voted for change and it's no where in sight. That is the tragedy.

Certainly looks bad for DM MP. I hope he realizes that returning unspent amount means he has failed as the DM of India. At least he should declare a target to reduce it the next fiscal.


No point in comparing him to CONgress DM, we hold him up to a much higher standard. He needs to step up and deliver.

The issue is related to the pending implementation of DPP 2016 which would be very favorable to the Private MIC (both Foreign & Indian). One can argue the DPP 2016 is actually written by Private MIC to be rubber stamped by MOD.

Once DPP 2016 is implemented we would see a glut of defense deals being closed under DPP 2016. So things would drastically improve by next year. We would have situation where we would have exhausted all the CAPEX much earlier than the close of the fiscal year.

 

[raktaka]

True. But people voted for change and it's no where in sight. That is the tragedy.

The issue is related to the pending implementation of DPP 2016 which would be very favorable to the Private MIC (both Foreign & Indian). One can argue the DPP 2016 is actually written by Private MIC to be rubber stamped by MOD.

Once DPP 2016 is implemented we would see a glut of defense deals being closed under DPP 2016. So things would drastically improve by next year. We would have situation where we would have exhausted all the CAPEX much earlier than the close of the fiscal year.

Possibly, but DM should define a TARGET and thus an KRA that will define his agenda to the public. His performance should be measured against that.

 

[MilSpec]

Is this really news to anyone? It's is worrying if this is the first time the polticans have caught on to the accounting tricks the military starts to play towards the end of the FY.

This has been a common practice for a long time and who are the worst offenders? Who has BY FAR the largest revenue/OPEX commitment? The IA!!

Damn it, it's despicable.

1) Cut the IA's manpower by 30%
2) Reduce the red tape in procurements
3) Increase descretionary spending powers of brigade commanders
4) Create the CDS post
5) Subsequently start pooling procurements so that one system can serve in mulitple branches as opposed to the absurd system there currently is where they all have similar requirements but intiate indepdenant procurements and often select different products for the same requirement

DPP 2016 will only partially address the problems but the rot goes far deeper than that and requires invasive procedures.

This is why I get really mad when I see people complaining about being the "world's largest importer" of mil equipment as even this isn't enough! If you stopped importing the military would be entirely useless.


Literally


Seconded.

Mr Parrikar has a big mouth on everything except for his actual portfolio, almost everything he has promised has come very very late or not at all and he has failed to create any sort of narrative that inspires confidence in him. I still haven't heard him mention anything about the three proposed tri-service commands even though th emilitary has said they have done everything to lay the groundwork and are simply waiting on a greenlight from the MoD. And the less said about his comments on the Rafale the better, he is making India look like a farce and projecting himself as out of his depth.


@Taygibay @ranjeet @anant_s @Star Wars @arp2041 @noksss @skyisthelimit @ito @Parul @Koovie @Water Car Engineer @AUSTERLITZ

Hey, maybe they should hire me, I exceed my AOP allocation every year. Jokes apart, we seriously need a dedicated Defence administration council, something more close to a Pentagon perhaps, than a rickety old MoD. If Narendra Modi can do this one thing in his tenure we would be the best PM the history of India in my book.

 

[desimorty]

Lean and Mean folks, lean and mean! While India does have low cost manpower advantage but the requirements of this age and era are different and is not manpower heavy. There aren't going to be any mass invasions nor does India have a expeditionary foreign policy so why such an ill equipped huge army?

Cut down your strength to 500K and invest the savings in kitting them properly and training them in CT operations, quick deployment, penetration and extraction tactics. Holding actions are a thing of past - just look at how Russians are rolling these days!

Source: Parliamentary panel slams defence ministry for not using funds for modernisation

Domestic problems. In the event of war, half our boys are their to protect the assets in India, NOT make war. Pakistan, China would use Indians against Indians. Internal weakness. The machines are useful as well and reduce reliance. Then the other is the UN peacekeeping force, humanitarian relief operations etc.
IA will cut down on its force, if the CRPF and other branches grow. Manpower is cheap, but not that cheap. You have to pay them their pension. Also the Russians are not going to fighting a cold war again. But India still has its irresponsible neighbours. China straightened out because of lack of support from Russia and USA against India. Pakistan OTOH doesn't listen very well. Burma is finally becoming a democracy and has shifted towards India, that being said the military junta still has support from the CCP.
I'd say give it time. It'll reduce the manpower, or convert them to the other branches. The most outstanding issue, is Kashmir. If the AFSPA is removed, than we can have reduced manpower, as the IA won't operate there with out its protection guarantee.