Parl Panel flags shortage of Rs 60K crore for defence modernisation

New Delhi [India], Mar 13 (ANI): The Parliamentary standing committee on Defence on Friday flagged the shortage in allocation of the defence budget for modernisation saying it would affect the acquisition of the latest weaponry for the Armed Forces.
The Committee said it feels and desires that to develop, and acquire the most modern state of the art fighting platforms, which can match Northern and Western neighbours, the requisite allocation to the Capital Head is very essential.
The Standing Committee on Defence in its report said: "The Committee are of the view that the considerable shortage in the allocation of the budget in the Capital Head, which is 35 per cent less the projection, would affect the acquisition of latest weaponry, aircraft, ships, tanks and capital intensive projects including land, building and other infrastructure."
In its report, the Committee noted that during the year 2020-21, the Defence Ministry has been allocated Rs 1.13 lakh crore in the Capital Budget against the projection of Rs. 1.75 lakh crore, which amounts to the shortage of Rs.61,968.06 crore and out of this head for the Services only Rs. 1,02,432 crore was allocated against the projection of Rs. 1,61,849.20 crore, leaving a gap of Rs. 59,416.63 crore.
The Committee cited Vice Chief of Army Staff (VCOAS), Lt Gen SK Saini as saying: "First is the ideal ratio between revenue and capital budget. Now, 60:40 is an ideal ratio which is a guideline. As I mentioned in my opening statement, we have unsettled borders; we have a very constrained internal security environment in Jammu and Kashmir and also in the North-Eastern parts of India where you require boots on the ground and therefore, you need to have a large standing Army."
The VCOAS said this is one of the causes that the ratio at the moment is more biased towards revenue expenditure than capital acquisitions.
"We are leveraging technology, where we can reduce the manpower, which is deployed to undertake such missions which are there. We are also having other measures in place where we can reduce the revenue expenditure with respect to better efficiency in spending and getting more value for money. This is an ongoing process and it is being done, but largely because of the kind of tasks which we are required to perform at this juncture, this ratio is what it is," said Lt Gen Saini.
Saini while underlining that there will always be a gap between "our projections and the allocations", said: "Therefore, our expertise lies in marrying that differential between our projections and the allocations. As was brought out in the presentation by the Director-General, Financial Planning, we have undertaken a number of measures to bridge this gap. It affects certain domains where you are unable to spend the money." (ANI)