Thursday, February 20, 2014

Indian Armed Forces starved off funds

Recent announcement of Government of India’s proposal to implement One Rank One Pension for the soldiers (and similar scheme for other government employees) has led to renewed talk by some self-styled experts about rise in revenue expenditure (pay and allowances) in defence budget derailing capital expenditure (termed as modernisation). This is a false and motivated argument. The fact is that modernisation of Indian Armed Forces is suffering due to inadequate budgetary support. Size of Indian Defence Budget has been squeezed to unacceptable levels during last few years.  It was 15.24 per cent of Central Government Expenditure in 2004- 05 and has come down to 12.23 per cent in fiscal 13 -14. Consequently today India is one of the lowest spender on its defence as percentage of  GDP
 Average for all Nations:                 2.2
 USA:                                                      4.5
 PRC:                                                       5.3
 India:                                                     1.75

This moratorium on defence budget has naturally resulted in reduced availability of funds for Armed forces at large, but military hierarchy in their quest to still find money for modernisation are cutting down on basic needs of soldier. As recently reported by CNN-IBN, the Army had at peak of winter, imposed drastic cuts on supply of Kerosene oil for warming purposes to its soldiers deployed at forward posts located in mountains. Wish concerned General was made to spend a couple of nights in freezing temperatures!

The developed nations of the world earmark minimum 3 per cent of Gross Domestic Product (GDP) for defence and spend 65 per cent of this allotment for modernisation. In the recent Interim budget, the Government of India has earmarked 1.75 per cent of GDP, that is Rs. 2,24,000 lacs crore for defence, which includes 42 per cent for modernisation. If this figure is raised to 3 per cent of GDP, the Indian Armed Forces will get 3,84,000 lac crores and will be able to devote 1,50,000 lac crores, that is, 65 per cent for modernisation of its military.

Another bit of false propaganda by so-called experts, which includes some retired fellows is that post Sixth CPC Indian soldier is well-paid. Apparently for them any one with two square meals is well paid. Actually India spends least on its soldier. Please see the table on Military spending on Purchasing Power Parity (PPP) Basis given below.
USA :                      $ 417.4
 PRC:                       $ 151.0
 India:                       $ 64.0


There is a need for common Indian citizen to get the right information about state of nation’s armed forces, which have been starved of funds both in terms of pay and allowances as also in terms of modernisation.

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