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IDSA COMMENTWhat is choking the Indian defence budget?
Amit Cowshish
February 14, 2014
With the economic growth for the current fiscal likely to be
below 5% an the ne!t year"s
#ro$ection being eually moest, any fanciful increase in the
allocation for efence for the
coming year &2014'15( seems unlikely) *he sus#ense will be
o+er shortly when the interim
buget for 2014'15 is #resente ne!t week)oest increase in
allocation is, howe+er, less worrisome than the fact that the
efence
allocation-e!#eniture has been steaily going own as a #ercentage
of the Central
.o+ernment /!#eniture &C./( ' from 15)24 #er cent in 2004'05
it came own to 12)2
#er cent &base on the / figures( in 201'14)
*he er+ices an the strategic community in 3nia ha+e long been
com#laining of
inaeuate allocation for efence) For the year 201'14, the
#ro$ection mae by the
inistry of efence an the actual allocation at the / stage were
as follows1
6u#ees in croreRevenue 7ro$ection Allocation ifference %ageArmy
855)9 91118)20 122:)19 1)11;a+y 181:4):8 12184)4 :8
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*he total allocation uner re+enue an ca#ital segments works out
to 3;6 2,0,:A accounte for :1)A
account for more than A accounte for 4:)1:% of the re+enue buget
an 25)19% of the total
buget) *his has now stabili@e aroun :0':2% of the re+enue buget
an more than 1-r
of the total buget)
With the setting u# of the A
coul #ossibly account for more than
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What makes it a matter of serious concern is the fact that the
brunt of this skewe buget
has to be borne by the allocation for stores an eui#ment an, to
some e!tent,
maintenance works) 3n 2009'08, i)e) before the si!th 7ay
Commission, the share of stores
> eui#ment was 4):2% in the re+enue buget an 19)99% in the
total buget) 3t came
own to 19)84% an 10)9
