Defence allocation sees moderate rise to $70 billion, air force gets largest capital boost – Defence News of India

By Vikas Gupta

Defence News of India, 2 Feb 22

Despite a still sluggish economy and sustained military pressure on the military due to multiple Chinese troop intrusions on the Ladakh border, the government has increased defense allocations for fiscal year 2022-23 by less than 5%, per compared to the revised estimate for the 2021-22 financial year and by almost 10% compared to BE 2021-22.

The government had allocated US$64 billion (478,196 crore rupees or 4.78 trillion rupees) for BE 2021-22. In the revised estimates for 2021-2022, this amount was increased to US$67 billion (502,883 crore rupees or 5.02 trillion rupees). In the budget for the financial year 2022-23, the government has allocated US$70 billion (525,167 crore rupees or 5.25 trillion rupees).

While the 1.3million-strong military received the bulk of the revenue and pension budgets, the Indian Air Force (IAF) was given the largest share of the allocation of capital: 7.4 billion dollars (55,587 crore rupees), about 10% more than what the IAF obtained last year.

2017-18 Defense Allocations

(Billions of United States dollars)

The IAF faces a continuing load of payments for 36 Rafale fighters it purchased in 2016, modernization of the Mirage 2000 and Jaguar fighter fleets, and the manufacture of Sukhoi-30MKI and Tejas fighters by Hindustan Aeronautics Ltd (HAL ). There is also a big outlay looming on a tender for 114 multi-role fighters, for which the IAF has launched a blanket purchase.

To the army’s credit, it has deployed a large number of troops and equipment to the Ladakh border without seriously exceeding its revenue budget, from which payments for such deployment are made.

Meanwhile, the navy received a capital budget of US$6.4 billion (47,591 crore rupees or 4.76 trillion rupees), about the same as the previous year’s allocation. . The military was once again awarded the smallest share: $4.3 billion (Rs 32,015 crore or Rs 32 trillion).

Indicating the intention to continue funding Indigenous research and development (R&D) projects, the Defense Research and Development Organization (DRDO) has been allocated a healthy capital budget of $1.6 billion (11,982 crore rupees).

After years of paying lip service to prototype development funding under the Technology Development Program, the government this year has allocated US$183 million (Rs 1,365 crore) for prototype development in the category “Do” acquisitions.

In what would have been a relief, the Ministry of Defense (MoD) managed to stabilize pensions. Retirement allowances were kept at US$16 billion (Rs 119,696 crore), up from US$377 million (Rs 2,818 crore).

With a focus on infrastructure building by the military, the capital segment of the Ministry of Defense (Civil) budget, which caters to organizations such as the Indian Coast Guard (ICG), the Organization Border Roads (BRO) and the General Directorate of Defense Domains (DGDE), experienced a notable jump of 55.6%. In absolute terms, capital allocations to these securities amount to US$1.08 billion (Rs 8,050 crore) in FY 2022-23, up more than 50% from allocations of US$690 million (Rs 5,173 crore) in the financial year 2021-22. .

In a bid to strengthen border infrastructure, the BRO’s investment budget has been increased by 40% from US$334 million (Rs 2,500 crore) for the current year to US$468 million ( Rs 3,500 crore) for the financial year 2022-23.

“This will accelerate progress in the creation of border infrastructure, including important tunnels (Sela and Naechiphu tunnels) and bridges over major river breaches,” the Defense Ministry said in a statement on Tuesday.