Army, Navy, Air Force returned Rs 7,000 crore in 2008-09
The footprints of the Sixth Pay Commission were evident all over the outlay for the defence forces: Up from Rs 1,14,600 crore in 2008-09 (revised estimates) to Rs 1,41,703 crore in 2009-10), an increase of about 34 per cent over the previous fiscal.
Of this increase, pensions, which have gone up as a result of the Pay Commission’s award, account for about Rs 5,000 crore: From the budget estimate in 2008-09 of nearly Rs 15,600 crore, pensions went up to Rs 20,233 crore in the revised estimates, and have been allocated Rs 21,790 crore in the current budget. Salaries have also gone up: From Rs 54,560 crore in 2008-09 to Rs 81,388 crore in 2009-10.
The services have returned unutilised nearly Rs 7,000 crore because they did not buy equipment they had earlier provided for. In 2008-09, the capital outlay was Rs 48,007 crore. But as plans to procure the light utility helicopters and 155mm artillery guns did not materialise, the services gave the money back to the government.
As always, the Army and Air Force were responsible for the biggest quantum of money allocated towards equipment, returned unspent. The Army was allocated Rs 8,345 crore for equipment but spent only Rs 6,268 crore. The Air Force was allocated Rs 6,290 crore and spent nearly Rs 1,000 crore less, at Rs 5,151 crore.
The capital outlay for the Armed Forces for 2009-10 has been fixed at Rs 54,824 crore.
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Less than a year ago, in October 2008, a report of the Comptroller and Auditor General (CAG) slammed the government on India’s poor naval fleet. The report said that no more than 48 per cent of India’s submarine fleet was available for waging war, should India be attacked. “The Indian Navy currently holds just 67 per cent of the force level envisaged in its 1985 plan,” the report said. “Some of the submarines have already outlived their maximum service life,” it added. However, that the situation has not improved was clear from the budget figures: Of the Rs 7,200 crore allocated for the Naval Fleet, only Rs 4,000 crore was spent.
The increase in defence outlay this year amounts to Rs 36,103 crore over last year’s allocation of Rs 1,05,600 crore, and is to speed up procurement of defence equipment and plug the security gaps exposed by the November 26 Mumbai terror attacks last year. Last year, the outlay was increased just 10 per cent over the Rs 96,000 crore defence budget allocated in 2007-08.
India's defence spending is still at about 2 per cent of the GDP, compared to China’s 7 per cent and Pakistan’s 5 per cent.
After the Mumbai attacks, the government also initiated a massive revamp of the nation’s security structure, which includes creation of a Coastal Command and entrusting overall responsibility for maritime security with the Navy and integrating activities of all sea-faring ministry and departments including Petroleum, Shipping, and Fisheries.
It also approved the Coast Guard’s request for purchase of fast patrol craft for securing the long-winding 7,417-km coastline and to hire helicopters for maritime reconnaissance. But despite this, the Coast Guard returned nearly Rs 200 crore unspent. It was allocated Rs 947 crore in 2008-09 and managed to spend only Rs 700 crore. It has been allocated Rs 1,904 crore in the current budget.The budget also proposed the one rank, one pension scheme for ex-Servicemen. “Our country owes a deep debt of gratitude to our valiant ex-Servicemen. The Committee headed by the Cabinet Secretary its report and the recommendations of the Committee have been accepted,” Mukherjee said.
On the basis of these recommendations, the Government has decided to improve the pension of pre-January 1, 2006 defence pensioners below officer rank and bring pre-October 10, 1997 pensioners on par with later pensioners. Both these decisions will be implemented from July 1, 2009, resulting in enhanced pension for more than 1.2 million jawans and JCOs. These measures will cost the exchequer more than Rs.2,100 crore annually. Certain pension benefits being extended to war wounded and other disabled pensioners are also being liberalised.