Business Standard

Navy and Air Force modernise, Army remains mired in high personnel costs

Budget allocations barely diverge from a simple formula: Give the army 60 per cent, the air force 24 per cent and the remaining 16 per cent to the navy

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Ajai Shukla New Delhi
The defence budget, which the Union government presented on Friday, underlines that each of the three services remains locked in its own expenditure pattern.
 
The Army, which most requires modernisation, continues allocating well over two-thirds of its budget to salaries and pensions, leaving just a little over one-tenth for new equipment.

The Navy manages manpower best, spending just over a quarter of its overall budget on personnel costs. Despite having the lowest capital allocation, it will still spend a healthy 45 per cent of its budget next year on new warships and equipment.

The Air Force spends the largest percentage

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