No defence for this

With Rs 5,000 crore unspent last year, the NDA government has undoubtedly set some sort of a world record for surrendering large amounts of money budgeted for the defence services for the sixth consecutive year. The announcement about non-lapsable defence modernisation fund would no doubt be useful to deal with some delays in decision making. But it depends upon the details of how the government plans to use this fund. While the contribution of reduced defence spending to lower the fiscal/revenue deficit is something that even the defence forces would welcome in the larger context, some nagging queries demand unambiguous answers. Firstly, should defence carry an inordinate burden for fiscal responsibility as compared with other departments of the government, as it seems to be doing for more than a decade?

The very logic of defence budget is to ensure adequate and timely expenditure control. Since a great deal of defence expenditure has long-term gestation periods, defence planning becomes crucial. This is even more critical in the area of capital expenditure. But the government’s surrender of anything between 20-30 per cent of the capital expenditure every year during the past four years has made a mockery of both expenditure control as well as defence planning. It has perhaps taken the term “non-plan” expenditure too seriously! The ministry of defence had informed the bipartisan Standing Committee on Defence of Parliament that a requirement of Rs 89,000 crore had been projected for the financial year 2003-04. But only Rs 65,300 crore had been approved in the budget and as much as Rs 5,000 crore remains unspent from this allocation.

The impression that defence planning has become ad hoc and not subject to any fiscal discipline or the sanctity of the planning process is, unfortunately, becoming inescapable. The budget figures indicate a depressing picture of the state of modernisation in the defence forces. There was an over 26 per cent shortfall in the Indian Air Force’s expenditure for aircraft and aero-engines, the core of its fighting capability. No wonder the grapevine is beginning to talk about a number of fighter squadrons being “number-plated” for want of replacement aircraft. In an era of modern hi-tech warfare, where air power holds the key to success, with or without nuclear weapons, this can hardly bring any feel good factor to those involved in or interested in credible affordable defence. But with a near 50 per cent shortfall in the expenditure for the naval fleet, one wonders why we assume that our naval power can play the role that the prime minister had spelt out for it at the last combined commanders’ conference?