06 March 2013, 06:04 PM IST
This year's defence budget would seriously affect defence modernisation efforts. In actual terms the defence budget has been increased only by 5.3% over the last defence budget for 2012-13 which stood at Rs.1,93,407 crore. This was later cut down to Rs. 1,78,503 crore 'due to economy being under pressure'. This amount is inadequate to meet even the continuing requirements of the defence forces. The annual inflation rate is moderately put at 7%. In addition, the fall of rupee against dollar makes the acquisition of equipment costlier. These factors make that the defence budget lower than the previous year's defence allocation.
It may be recalled that the Kargil Review Committee in 1999 had recommended that defence modernisation required continuous allocation of 3% of the GDP at least for 15 years. The current budget is merely 1.79% of the GDP. Even in terms of percentage to the total budget, defence budget has come down from over 15% in 1999 to around 12% in 2013. The different Services of the armed forces have been projecting the need for modernisation, replacement of obsolete weapons and induction of best weapon systems. The chiefs of different Services have pointed out the urgent need for new weapons and technology.
While the fast changing security environment is multiplying security threats, the capabilities of our armed forces are not being upgraded. What is more alarming is the fact that the increase in allocation for crucial capital acquisition comes to only about 4-5 per cent, when seen in the backdrop of 7% annual inflation and adjustment against rupee value. Notwithstanding the Defence Minister's assurance that the critical needs of the armed forces would not be affected, it is not difficult to visualise how the defence budget would adversely affect the critical purchases.
The security environment not only continues to be difficult, it is becoming worse. Our land borders with China and Pakistan demand continuous active deployment of forces. The coastal region and security of sea-lanes as also of crucial EEZs require a naval force equipped with best weapon system and speed boats. Our only aircraft carrier INS Viraat needs urgent up gradation and is out of action for several months for a major refit so that it may again become operational. The other one INS Vikramaditya (Admiral Gorshokov) can be available by the end of the year at the earliest. The indigenous 40000 tonne aircraft carrier will not be available before 2018 if it continues to get the required funds. The nuclearized South Asia underlines the need for not only best fighter planes but different kinds of missiles. The centrality of air dominance cannot be underestimated and that demands adequate number of state of art stealth fighters. This is particularly important when China is in the process of deploying three different types of stealth aircraft-J-15, J-20 and J-31. It has already developed a number of armed UAVs. The Indian army requires modern artillery guns, ant-tank missiles and tanks that can prove superior to others in terms of mobility, fire power and radius of operation. All these require sufficient funds.
A look at the defence budgets of neighbouring countries would point out the yawning gap between what our defence budget is and what it should have been. Chinese official defence budget is increasing in double digits since 1989. On the 5th March, 2013 the NPC has raised the defence budget by 10.7% to 740.6 billion yuan ($ 119 billion) over the last year's budget which stood at $ 106. This is substantial increase from $17 billion in 2001. In actual terms, the Chinese defence budget for the year 2013-2014 is seven times more than the defence budget of 2001. These figures become all the more worrisome as it is known that the actual Chinese defence budget is two to three times more than the official budget. The official budget does not include arms procured from Russia, funds from the central and local governments for defence mobilisation, preparations, conscription and demobilisation and funds required by the civilian run industrial sector for the armed forces as also the earnings of the PLA units. The Chinese growth rate for the past several years had been around 10.3% and this allows it to enhance the defence budget rapidly. Even this year, it is expected to be around 7.5% despite a worldwide economic turmoil and domestic problems.
Pakistan too hasbeen increasing its defence budget every year. Last year, Pakistan hiked its defence budget for the fiscal year 2012-2013 by nearly 10% to Rs 545 billion from Rs 495 billion for the year 2011-2012. This is 18.4% of the federal budget for the 2012-2013. In addition, Pakistan also uses Coalition Support Fund which is about Rs 150 billion to support defence forces. Experts point out that about 60% of this fund goes to defence. Pakistan also gets Rs 30 billion as fee from UN for peace keeping services and this is also used for defence purposes. Thus in all Pakistan's defence budget comes to Rs 679 which is 21% of the federal budget or 2.89% of the Pakistan's GDP.
In view of the above, the current Indian defence budget is grossly inadequate. It will hamper the plans to modernise the armed forces. This will not allow the defence 15 year integrated perspective plan to be implemented. The defence requirements demand that the defence budget should be kept at 3% of the GDP at least for the next 10 years. Only then the Indian armd forces can be adequately equipped with necessary weapon system. Our acquisition system also needs to be improved. The excruciating delay in procurement denies the best systems to be acquired. The system needs to be made more transparent to avoid corruption. The Government needs to understand that corruption in procurement demands punishment of the guilty and not the cancellation of the deals intended to acquire the much needed equipment. Late Sri Brijesh Mishra, former National Security Advisor, in his K. Subrahamaniam memorial lecture in 2011 had severely criticised the UPA government's policy of avoiding purchases of the required military hardware due to fear of charges of corruption. The solution lies in making the procurement system transparent and flawless so that none can indulge in corrupt practices.
The need for defence requirements need to be understood by our political leaders. Their focus on elections does not allow going beyond common needs like electricity, water, shelter and transport means. Their apathy towards security needs is doing a great harm. The armed forces, which are essential not only for responding to the external threats, are also required to deal with internal problems. The political leaders need to appreciate that the national security interests should not be side-lined as its impact could be far more disastrous than can be visualised.
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