IMRAN MEETS LAGARDE FOR BAILOUT TALKS PRINCE PHILLIP GIVES UP LICENCE AFTER CAR CRASH Air force, navy stare at fund crunch next fiscal

Money allocated in interim budget not enough to meet liabilities

The other option is to roll over the liability, a third defence ministry official said, asking not to be identified. According to Amit Cowshish, the former chief financial adviser to the ministry of defence, “rolling over committed liabilities happens, but is not a healthy practice. Importantly, it reflects poorly on the country.”

The situation isn’t very different for the Indian Air Force which has been allocated ~39,302.64 crore for capital expenditure, but which has committed to paying ~47,413 crore this year, a fourth senior defence ministry official, who did not want to be named, said. Among the big-ticket items IAF is paying for are the Rafale fighters from France.

The army is relatively better off. It has been allocated ~29,447.28 crore. It has a committed liability of ~21,600 crore.

The Indian Army is racing against time to stock up arms and ammunition to be prepared to fight an intense 10-day war. The process received a boost after the terror attack at the army encampment in Uri in 2016.