For defence pension, which is over and above the outlay mentioned above, an amount of Rs. 1,08,853.30 crore has been provided in Budget Estimates 2018-19
NEW DELHI: India's defence budget for the coming financial year 2018-19 has been increased by 7.81 per cent to Rs 2.95 lakh crore over last year's Rs 2.74 lakh crore allocation. At a time when India faces military threats from both Pakistan and China, the defence outlay is unlikely to completely meet the operational requirements and capability development programs of the defence services.
The Union Budget for 2018-19 was presented by Finance Minister Arun Jaitley in Parliament today, which envisages a total outlay of Rs 24,42,213 crore. Out of this, Rs 2,95,511.41 crore has been earmarked for defence. "This accounts for 12.10 per cent of the total central government expenditure for the year 2018-19," the defence ministry said today.
The defence outlay works out to just about 1.58 per cent of the GDP for 2018-19, the lowest such figure since the 1962 war with China wherein it was 1.65 per cent.
The fresh allocation of Rs 2.95 lakh crore represents a growth of 7.81 per cent over the budget estimates (Rs 2.74 lakh crore) and 5.91 per cent over the revised estimates (Rs 2.79 lakh crore) for the financial year 2017-18.
Out of Rs 2.95 lakh crore, Rs 1,95,947.55 crore has been allocated for revenue expenditure and Rs 99,563.86 crore for capital expenditure for the defence services and departments under the ministry. The capital outlay also includes the modernisation expenditure.
For defence pension, which is over and above the outlay mentioned above, an amount of Rs. 1,08,853.30 crore has been provided in Budget Estimates 2018-19. This is 26.60 percent above the Budget Estimates 2017-18 of Rs. 85,740 crore and 14.26 percent over Revised Estimates 2017-18 of Rs. 95,000 crore.
Infrastructure
Finance Ministry Arun Jaitley in his budget speech didn't mention the defence budget allocation. But added that infrastructure for connectivity in border areas is being developed. This is part of India's defences in these remote areas.
"Rohtang tunnel has been completed to provide all weather connectivity to the Ladakh region. Contract for construction of Zojila Pass tunnel of more than 14 km is progressing well," he said. More importantly, he added that, "I now propose to take up construction of tunnel under Sela Pass."
Later in the day, Defence Minister Nirmala Sitharaman said that the defence budget has taken into account all that has been requested. "He agreed on the construction of the tunnel under Sela Pass, which is located near Tawang. It tells us about the priority being given for the defence of the North East and access to such points, which are critical for defence," she said.
Tawang is an important strategic location for the Indian Army. It was a primary location where the 1962 India-China war was fought. From Tawang, the LAC in Bumla is not far located. Reaching Tawang by road is an arduous journey through bad road connectivity. The Sela tunnel will reduce the road distance to Tawang and will ensure that the stretch from Bomdila to Tawang remains open throughout the year.
Sitharaman also said that several border roads are being given priority. "The budget has taken border roads, tunnels, strategic projects and the defence industrial corridor into consideration," she said.
In relation, the army had re-prioritised its five year plan for 2018-2023 to meet its operational requirements along the frontier with China. The emphasis is on infrastructure development such as building better road connectivity, more fuel storage facilities and troop accommodation. The army is already looking at building capacities to move forces between sectors along the LAC and from the western front to the northern front.
Experts added that the Sela Pass tunnel is a step in the right direction, however more money should have been allocated for border connectivity.
Make in India
Meanwhile, Jaitley in his speech also spoke about private investment in defence in India. "We will take measures to develop two defence industrial production corridors in the country. The government will also bring out an industry friendly Defence Production Policy 2018 to promote domestic production by public sector, private sector and MSMEs," he said.
Sitharaman said that the first defence corridor will be established in Tamil Nadu, linking Chennai and Bangalore. She said that between these two places all small and medium manufacturers will be benefited.
On being asked why does the location of the first corridor have to be in Tamil Nadu, she replied, "the Secretary of Defence Production had gone around the country to see where this can be planned and where there is a natural ecosystem. For us to place an ecosystem will be time consuming...because of the presence of tier-1 industry, ordnance factory and Awadi tank factory...in Coimbatore there are so many units that are supplying to the army and IAF...we thought ecosystem is here."
The second corridor will be announced later. On being asked if the defence budget can meet the requirements of a two front war with Pakistan and China, Sitharaman said, "every ministry will never say this is enough. You have to be realistic that the budget has to be given to other ministries as well." She also said that one has to see how much it will cost for revamp or complete revamp with a mix and match without compromising security.
Experts, however, said that the budget will at least not meet the army's operational requirements of meeting the threats against China and Pakistan. "Even modernisation may suffer," said an expert.