India’s Quest for a Strategic Maritime Reach
Finance Minister arun Jaitley has announced a defence allocation of 2,58,589.3 crore (about $38 billion) in the budget 2016-17 which is 1.47 per cent of the GDP
The Finance MINISTER'S BUDGET speech has always highlighted the allocation for the defence forces with the customary closing remark that if additional funds are required, they will be met. however this year the budget speech does not include any reference to the allocation for defence and the word defence is used only five times. in fact the burden of seventh Pay commission and One rank One Pension (OROP) has been highlighted. it is altogether a different matter that the Ministry of defence can rarely spend all the allocated funds and a portion has to be surrendered. From the capital budget about ` 11,595 crore has been not been spent which is equal to 13.4 per cent. This could be utilised to boost popular schemes which could give advantage to the government as five states are going for election this year. The government also considers the defence manufacture as a key player to boost Make in india and accordingly changes in customs and excise duty rates have been planned on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like defence production and some other sectors.
Defence Budget Allocations
Finance Minister arun Jaitley has announced a defence allocation of ` 2,58,589.3 crore (about $38 billion) in the budget 2016 which is 1.47 per cent of the GDP. This figure includes revenue and capital expenditure, net of recoveries and revenue receipts but excludes the defence pensions.
The total revenue allocation ` 1,43,869.46 crore (about $21.15 billion) which is about 6 per cent more than the revised estimates of ` 1,25,808.67 crore of 2015-16.
Army. a total allocation of ` 1,02,788.84 crore is shown which includes other revenue expenditure like pay and allowances of civilians, transportation, stores, works, etc. Out of this pay
Anti-submarine warfare corvette of Project-28 Kavaratti