The total defence expenditure for 2021-2022 has been elevated by a paltry sum to Rs four,78,196 crore from final yr’s budgetary allocation of Rs four,71,378 crore, which quantities to a mere 1.four% hike.
Budget 2021: Live updates
The silver lining is that the capital outlay for navy modernization has been hiked by virtually 19% to Rs 1,35,061 crore from final yr’s budgeted Rs 1,13,734 crore. “This is the highest-ever increase in capital outlay for defence in 15 years,” mentioned defence minister Rajnath Singh.
I specifically thank PM& FM for growing the defence finances to four.78 lakh cr for FY21-22 which incorporates capital expen… https://t.co/IK2BtCrUsn
— Rajnath Singh (@rajnathsingh) 1612168362000
Moreover, the rise by Rs 20,776 crore within the revised estimates for 2020-2021 over the budgetary estimates present the flurry of emergency procurements India has constructed from international locations just like the US, France, Russia and Israel to bolster its operational navy readiness after the a number of Chinese intrusions into jap Ladakh final May. These vary from completely different missiles and precision-guided munitions to drones, assault rifles and specialised winter clothes and tools.
The four.78 lakh crore defence finances additionally contains Rs 1.15 lakh crore as defence pensions for retired navy and civilian personnel. It works out to simply 1.63% of the projected GDP for 2021-2022 if the pension invoice is excluded, and a pair of.15% if it isn’t.
This when navy specialists have been demanding that India ought to allocate over 2.5% to defence expenditure for constructing the requisite deterrence towards China and Pakistan, the collusive risk from whom has solely elevated in latest instances.
Without a lot concrete planning to systematically construct navy capabilities and the persisting fund crunch, the 15-lakh armed forces proceed to undergo from operational deficiencies on a number of fronts, starting from fighter jets, submarines and helicopters to drones, ammunition and night-fighting capabilities.
India could also be among the many high 5 international locations when it comes to navy expenditure, although the US spends greater than 10 instances and China virtually 4 instances its annual defence finances, nevertheless it doesn’t get the largest bang for its buck. The upkeep of the armed forces, pay and pensions eat the majority of expenditure, leaving much less for the desperately-needed navy modernization.
Interestingly, the brand new estimates present a projected decline in defence pensions from Rs 1.33 lakh crore to Rs 1.15 lakh crore, which could possibly be an indicator that the federal government would possibly implement the proposal to extend the retirement age of officers and troopers.
As earlier reported by TOI, a proposal by the division of navy affairs has beneficial that the retirement age for ranks as much as Colonels within the Army and equivalents in Navy and IAF be raised to 57 years from the present 54.
Similarly, 58 years for Brigadiers (from 56) and 59 for Major-Generals (from 58). The retirement age for jawans and JCOs in non-combat arms like logistics, technical and medical branches, in flip, needs to be raised to 57 years, as per the proposal.