Defence kitty below 2 pc of GDP

The Defence Budget may have been raised by 10 per cent to Rs 1.05 lakh crore but what has set the military circuit worrying...

The Defence Budget may have been raised by 10 per cent to Rs 1.05 lakh crore but what has set the military circuit worrying is the fact that for the first time, India8217;s Defence spending has fallen to less than 2 per cent of its Gross Domestic Product GDP. Thanks largely to low utilisation of funds in the previous year 8212; two major arms contracts for the Army 155 mm howitzers and light observation helicopters were cancelled in the final stages 8212; the ministry returned Rs 3,500 crore from its share of the national budget.

With both China and Pakistan spending close to 4.5 per cent of their GDP on military affairs, analysts are concerned that India, with a projected spending of 1.98 per cent of GDP in the coming financial year, will fall behind in the larger strategic game in the coming years.

8220;There are two pointers. First, the fiscal outlay is not getting translated into outcomes, and the other, macro-level financial planning of the Government is inadequate. We are losing sight of the bigger picture as military modernisation is getting affected,8221; said C Uday Bhaskar, former director of the Institute for Defence Studies and Analyses.

Compared to the booming economic growth, India has been consistently spending less on the military 8212; Defence spending as percentage of GDP has seen a persistent decline from 3.38 per cent in 1987-88 to 1.98 per cent in 2008-09 8212; at a time when most nations have increased their budgetary allocation for defence. This, experts fear, will create capability voids in India8217;s armoury in the coming decades, especially compared to neighbour China which is modernising its armed forces at an unprecedented rate.

On all discreet fiscal indicators, China is ahead of India. In terms of expenditure, last year Delhi spent 24 billion on defence against the 50 billion by China. In the world order, China comes next only to the US in terms of defence spending while India is stuck at number 10. 8220;China is ahead in the vital area of trans-border capabilities like missiles, strategic weapons and space where India is lagging behind. This can have a long-term politico security impact in the region,8221; Bhaskar said.

This persistent decline and the 8220;present defence expenditure of some of our neighbours8221; has even prompted the Parliamentary standing committee on defence to recommend a fixed minimum spending of GDP on the defence forces. 8220;It is strongly recommended that the Ministry of Defence should take up the matter with the Ministry of Finance for providing a minimum 3 of GDP for defence services every year in order to ensure a fixed amount to carry out their modernisation, capital acquisition and R038;D programme and fulfil the need-based requirements,8221; read one of its recommendations.

Gunning for funds

8226; 10 billion fighter aircraft replacement programme

8226; Estimated 1 billion contract for 317 military helicopters

8226; IAF requires 12 VVIP helicopters, attack choppers, heavy lift rotary wing aircraft

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8226; Army is looking for 155 mm Howitzers, surface-to-air missiles, UAVs, small arms, night vision equipment

8226; Navy to acquire new frigates, reconnaissance aircraft, multi-utility helicopters besides upgradation of its ageing fleet