Tuesday, May 5, 2015

Army Rues Lack of Funds for Critical Weapons, to Approach Finance Ministry in June

Source:http://economictimes.indiatimes.com/articleshow/47143174.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst




                Army Rues Lack of Funds

                                    for

                       Critical Weapons,

                                      to

         Approach Finance Ministry in June

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This year's budget gave a hike of 7.9% in military spending, and as a percentage of GDP, total defence spending is 1.7%, the lowest since 1960s.

 





 We don't have the money to buy the weapons we really need - that's what the Indian military brass has told Parliament's standing committee on defence. The report on the military's concerns was submitted last week and India's generals explained that thanks to a record low budget allocation this year, defence forces won't be able to buy operationally critical equipment like artillery guns, carbines, missiles and antitank systems for the army as well as patrol vessels and surveillance h  helicopters for the coast guard.


This year's budget gave a hike of 7.9 per cent in military spending, and as a percentage of GDP, total defence spending is 1.7 per cent — the lowest since 1960s. India's army has said the country's defence budget should be brought up to 3 per cent of GDP. China's defence spending is 2 per cent of GDP, Pakistan's 3 per cent, America's 3.8 per cent and Russia's 4.1 per cent, according to ministry of defence estimates.

The defence ministry is planning to petition the finance ministry for additional funds in June.

Defence submissions to the committee have made the point that the budgetary hike will cover maintenance and salaries and committed liabilities for past purchases. Only 8 per cent of the capital allocation in the defence budget is for new projects.

 

Army rues lack of funds for critical weapons, to approach Finance Ministry in June
























Submissions made to the House panels say the army has identified 20 key projects it wants to sign but that the "money is not there". "Yes, a lot needs to be modernised. We are aware of it. We have got our plans but finally there is a funds crunch. That is being reflected in the way funds get sanctioned on the ground," a senior army Lieutenant General told the panel.

Defence brass is typically not identified in submissions made to House panels.


Countering criticism that its own system of procurement is prone to delays, the army told the panel: "The crunch is that you do not have the money. Just because the money is not there, there is a certain slowing down when it comes up to that level of sanction, the big projects because all the big projects go to the finance Ministry and tend to slow down. So, if the money is there, I am sure the things would fall into place."


Similar representations have come from the air force, which has been given only a fourth of its required funds for new projects. In fact, the money for air force's new projects - Rs3,264 crore - will barely be enough to make the first installment payment for the 36 Rafale fighters India is purchasing from France.

For the coast guard, not only is there not funds for new acquisitions, this year's budget allocation will have to be used for paying commitments for last year.
"With this (coast guard) budget they can go on for six months. We are hoping to take (it) up with the finance ministry in the month of June," Defence Secretary RK Mathur said.




























 

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