In the existent year’s budget, Finance Minister Nirmala Sitharaman allocated little than 13 per cent of authorities expenditure to defence (Express Archives)
Ajai Shukla
Jan 30, 2025 06:59 IST First published on: Jan 30, 2025 astatine 06:59 IST
The military’s fiscal planners are awaiting the Union Budget with bated breath. Since September, their assorted arms, services, directorates and departments person been finalising their fiscal privation lists for the twelvemonth ahead. Soon they volition cognize however overmuch of that volition beryllium made available. All that is presently wide is that the subject is not among the government’s apical priorities. In the existent year’s budget, Finance Minister Nirmala Sitharaman allocated little than 13 per cent of authorities expenditure to defence, continuing a multi-year inclination of falling allocations.
Over the past 5 budgets, defence spending, arsenic a percent of cardinal authorities spending, has fallen steadily from 13.81 per cent successful 2020-21; to 13.2 per cent successful 2021-22; to 13.65 per cent successful 2022-23. Last year, successful 2023-24, it was 13.25 per cent and this twelvemonth it is investigating the 13 per cent mark. As a percent of Gross Domestic Product (GDP), defence allocations person likewise fallen from 2.4 per cent successful 2020-21; to 2.12 per cent successful 2021-22; to 2.1 per cent successful 2022-23. Last year, successful 2023-24, it dropped beneath the 2 per cent people to 1.97 per cent. In the existent year, it dropped to 1.9 per cent.
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Defence spending arsenic a percent of GDP is an important marker. Spending up to 3 per cent of GDP connected defence is considered acceptable by lending agencies specified arsenic the International Monetary Fund (IMF) and World Bank. The North Atlantic Treaty Organisation (NATO) charter enjoins subordinate countries to walk astatine slightest 2 per cent of their GDP connected defence, truthful arsenic to lend efficaciously to NATO’s corporate defence. China, similar India, spends little than 2 per cent of its GDP connected defence; portion the US spends much than 4 per cent.
The services’ superior walk has risen implicit the past 4 years by astir Rs 40,000 crore, from Rs 1,31,697 crore successful 2020-21 to Rs 1,72,000 crore successful 2024-25. That averages retired to a emergence of astir 7 per cent each year, an inadequate rise for backing a subject modernisation programme arsenic ambitious arsenic India’s Atmanirbharta (self-reliance) programme.
The organisation of the capex budget betwixt the 3 services is disproportionate to the workload that each work handles. Of the 1.5 million-strong military, the service fields 1.26 cardinal personnel, oregon 84 per cent of the total, with galore of them embroiled successful progressive combat successful Kashmir and the northeastern states. Yet, the army’s stock of the superior fund has been constricted to 22-28 per cent of the full capex allocation. This leaves the service with a constricted kitty from which to wage for severely needed weaponry, specified arsenic artillery guns, onslaught helicopters, idiosyncratic protective covering for soldiers, etc.
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Meanwhile, the equipment-intensive navy, with 5.5 per cent of India’s subject personnel, was allocated betwixt 31-36 per cent of the superior fund during the play 2020-2025. It remains abbreviated of warships – particularly superior warships and submarines – that are indispensable for protecting our 7,500-kilometre coastline, implicit 2 cardinal quadrate kilometres of exclusive economical portion (EEZ), the Indian Ocean oversea lines of connection (SLOCs) done which much than fractional the world’s sea-borne commercialized passes; and planetary commons, specified arsenic state of navigation.
Paradoxically, the astir worrisome instrumentality shortages beryllium successful the Indian Air Force (IAF) – adjacent though that work already gets the largest stock of capex. With conscionable 10.5 per cent of the subject donning the IAF’s bluish uniform, the aerial unit has been spending betwixt 38-45 per cent of the modernisation budget. That is partially due to the fact that subject craft are prohibitively expensive: 36 Rafale fighters outgo the IAF US $8.7 billion. The defence ministry’s committedness to the “Make successful India” argumentation makes craft adjacent costlier. Each Sukhoi-30MKI combatant built successful Hindustan Aeronautics Ltd’s (HAL’s) Nashik works costs astir Rs 100 crore much than the aforesaid combatant erstwhile it is built successful Russia.
At the broader level, the defence ministry receives a higher allocation than immoderate different ministry. The wide signifier of allocations remains akin from twelvemonth to year. In the existent defence budget, astir 15 per cent was earmarked for sustenance and operational preparedness. About 57 per cent went connected unit costs: Including 30.7 per cent for salaries and allowances, 22.7 per cent connected defence pensions and 4.1 per cent connected civilian organisations nether the MoD. Finally, 27.7 per cent was allocated to the superior expenditure head, for modernising the country’s arsenal.
Most modern militaries walk betwixt 50-60 per cent of their full defence outlay connected the superior relationship truthful that modern weaponry and instrumentality guarantee a combat borderline implicit the adversary. This is simply a longstanding weakness successful India’s subject wherever determination is simply a terrible shortfall of backing for high-technology probe and improvement (R&D). During her Budget code past year, FM Sitharaman announced that the authorities would walk Rs 11,11,111 crore nether the superior head. Given the claimants connected that amount, the subject tin get lone a constricted stock of the pie.
Finally, defence fund watchers stay bewildered by the (absence of) accounting logic that governs the grouping of respective items. It remains unclear wherefore the allocations to the Border Roads Development Board (BRDB), the Coast Guard organisation (CG) and the Jammu & Kashmir Light Infantry (JAK LI) person been placed successful the MoD (Civil) accounting head. The BRDB and JAK LI intelligibly beryllium successful the Army’s accounting head, portion the Coast Guard belongs nether the Navy’s head. Similarly, the superior fund was earlier crystal clear, with allocations to each of the 3 services grouped separately, successful their ain sub-heads. Now they person each been grouped unneurotic and it is intolerable to differentiate the army’s allocations from those of the navy and aerial force. Perhaps that was the intention.
The writer is simply a retired service serviceman and journalist