Don’t cut corners on India’s defence needs

The Army’s wage bill continues to weigh down its finances for modernisation

In a report presented to Parliament on Tuesday, the Standing Committee on Defence said the funds allocated to the armed forces in the defence budget for the next fiscal were inadequate to address the security challenges staring India in the face. Vice Chief Lt Gen Sarath Chand told the panel that the sum earmarked for modernisation (₹21,338 crore) wasn’t enough to fund the 125 ongoing schemes, emergency procurements and weaponry for 10 days of intense war. One implication of this shortfall is that new acquisition deals, such as those for attack helicopters and infantry weapons, likely to be signed in 2018-19, could be delayed . The implementation of the One Rank One Pension formula means that the Army’s wages bill has seen a spike. Payroll and pension costs will constitute 56% of expenditure.

Analysts perceive it as a case of misplaced priorities. For the last six years, India’s defence expenditure as a percentage of GDP has been shrinking — this year saw the biggest drop since 1962 .

With respect to the increased threat perception, the possibility of a two-front war, flashpoints such as Doklam and militancy, there appears to be a mismatch between the operational needs of the Army and the monies allocated to it. Critics say the Indian Armed Forces are arguably too person-heavy and need rationalisation. Still, till the time the Army’s wages bill continues to weigh down its finances, the push for modernisation and battle preparedness – and meeting urgent requirements for light machine guns, rifles, ammunition, tanks and combat vehicles — may have to wait.