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

Hindustan Times ST (Mumbai) - - FRONT PAGE -

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.

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