Defence Budget Allocation for 2019-20 at Rs3.19 Lakh Crore, Excluding Defence Pension

Defence Budget Allocation for 2019-20 at Rs3.19 Lakh Crore, Excluding Defence Pension

Union Budget for the financial year 2019-20, presented by the Finance Minister Smt Nirmala Sitharaman in the Parliament today, envisaged a total outlay of Rs27,86,349 crore. Out of this Rs 3,18,931.22 crore has been earmarked for Defence (excluding Defence Pension). For Defence Pension, an amount of Rs 1,12,079.57 crore has been provided in Budget Estimate 2019-20. Total Defence Allocation (Rs4,31,010.79 crore), including Defence Pension, accounts for 15.47 per cent of the total Central Government expenditure for the Financial Year 2019-20.

The allocation of Rs 3,18,931.22 crore represents a growth of 7.93 per cent over Budget Estimates (2,95,511.41crore) and 6.87 per cent over Revised Estimates (Rs 2,98,418.72 crore), respectively for the Financial Year 2018-19.

Out of Rs 3,18,931.22 crore allocated for the Financial Year 2019-20, Rs 2,10,682.42 crore for Revenue (Net) expenditure and Rs1,08,248.80 crore for Capital expenditure for the Defence Services and the Organisations/ Departments under Ministry of Defence. The amount of Rs 1,08,248.80 crore allocated for Capital expenditure, includes modernisation related expenditure. The Capital Allocation of Ministry of Defence under BE 2019-20 is 31.97 per cent of the total Central Government Capital Expenditure, which is Rs 3,38,569 crore.

In a significant development, import of Defence Equipment not manufactured in India has been exempted from Basic Customs Duty. This will have an impact of augmenting the Defence Budget by approximately Rs 25,000 crore on account of savings in expenditure on Customs Duty over the next five years.

PIB

Government announced hike in the Military Service Pay (MSP) and One Rank One Pension (OROP) issue resolved

Government announced hike in the Military Service Pay (MSP) and One Rank One Pension (OROP) issue resolved

Our Soldiers Protect Our Borders in Tough Conditions - FM

 

The issue of One Rank One Pension (OROP) has been resolved and the Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties.

Ministry of Finance

Defence budget hiked to Rs. 3,05,296 crore

Rs. 3,05,296 crore have been provided in the Budget Estimates for 2019-20, compared to Rs. 2,82,733 crore provided in 2018-19 Budget Estimates. The figures were revised to Rs. 2,85,423 crore in the Revised Estimates of 2018-19. While presenting the Interim Budget 2019-20 in Parliament today the Union Minister for Finance, Corporate Affairs, Railways and Coal Sh. Piyush Goyal said "Our Defence Budget will be crossing Rs.3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided."

On the issue of strengthening Defence and National Security, the Interim Budget 2019-20 states that our soldiers protect our borders in tough conditions and they are our pride and honour. The Finance Minister Sh. Goyal said that due care has been taken of their honour. He said that the issue of One Rank One Pension (OROP) which was pending for the last forty years has been resolved.
He said "The previous Governments announced it in three budgets but sanctioned a mere Rs.500 crore in 2014-15 Interim Budget; in contrast we have already disbursed over Rs.35,000 crore after implementing the Scheme in its' true spirit. The Government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high risk duties."

Source: PIB

Compulsory Military Service - What says Parliamentary Standing Committee 40th Report?

Compulsory Military Service - What says Parliamentary Standing Committee 40th Report?

Compulsory Military Service to Government Servants - Matter is with DOPT

The Parliamentary Standing Committee on Defence has recommended five years Compulsory Military Service to Government Servants to be made mandatory and it was informed that the matter is now with DOPT

The Standing Committee on Defence, headed by Maj Gen B C Khanduri, AVSM (Retd) has submitted its 40th Report on ‘Demands for Grants (2018-19)’ to the Central Government this month.
The Committee, taking into the account of acute shortage of manpower in Officers Rank in Armed forces, has recommended five Years Compulsory Military Service should be Made mandatory for Government Officers on their initial appointment to address this issue. When the Committee asked the Ministry of Defence about the status of this recommendation, the Ministry has said that the matter has been taken up with DOPT and response of the Department is awaited

The Committee has taken serious view over the functioning of Bureaucrats in respect of addressing the issue of Shortage of Manpower in Armed Forces. The standing Committee is not satisfied with the Ministry's reply and made the following observations and recommendations in the Report.
The observation and Recommendation of the Committee as follows …

Shortage of manpower in the forces
"From the data furnished by the Ministry, the Committee note that there is a shortage of 7679 Officers and 20,185 JCOs/ORs in Army, 1434 Officers and 14,730 Sailors in Navy, 146 Officers and 15,357 Airmen in Air Force"

While examining the Demands for Grants 2017-18, the Committee pondered on this issue and recommended for providing five years of compulsory military service to such aspirants wanting to directly join Central and State Government Gazetted services. The Ministry, in its Action Taken Reply on the matter has stated that the recommendation regarding providing five years compulsory military service to such aspirants wanting to directly join Central and State Government services, with a view to overcome shortage of officers in Armed Forces, has been taken up with Department of Personnel and Training (DoP&T). The response of the Department is awaited.

Apparently, the Ministry of Defence has not taken up the matter with due seriousness with the DOP&T. The Committee, while recommending five years of compulsory military service to such aspirants wanting to directly join Central and State Government Gazetted services, have taken into account the fact that there is a perennial and alarming shortage of Officers and PBOR in the Armed Forces, which needs to be corrected. The Committee, once again express their desire that the issue of shortage of officers needs to be given priority for being addressed."

In the same report the Committee fired the Ministry of Defence on another issue with the following comments

"The Committee found the reply as bureaucratic in nature and not conveying anything about specific actions taken or proposed"

So it appears that the Standing Committee on Defence is very serious in addressing the issue of Shortage of Manpower in Armed Forces by enforcing Five Years Compulsory Military Service to such aspirants wanting to directly join Central and State Government Gazetted services .

As the matter is now with DOPT, it is believed that the Central Government may accepts this recommendation though it had earlier rejected the Proposals submitted in Parliament for implementation of Compulsory Military Training for Youths and Citizens.

Source: www.gservants.com

Defence - Budget 2018-19 - Allocate 12.10 percent of the total Central Government Expenditure

Defence - Budget 2018-19 - Allocate 12.10 percent of the total Central Government Expenditure

Union Budget for the financial year 2018-19, presented by the Finance Minister Shri Arun Jaitley in the Parliament today, envisaged a total outlay of Rs. 24,42,213 crore. Out of this, Rs 2,95,511.41 crore has been earmarked for Defence. This accounts for 12.10 percent of the total Central Government expenditure for the year 2018-19.

The allocation of Rs. 2,95,511.41 crore represents a growth of 7.81 percent over Budget Estimates (Rs. 2,74,114.12 crore) and 5.91 percent over Revised Estimates (Rs. 2,79,003.85 crore), respectively for the financial year 2017-18.

Out of Rs. 2,95,511.41 crore allocated for the financial year 2018-19, Rs. 1,95,947.55 crore has been allocated for Revenue (Net) expenditure and Rs. 99,563.86 crore for Capital expenditure for the Defence Services and the Organizations/ Departments under Ministry of Defence. The amount of Rs. 99,563.86 crore, allocated for Capital expenditure, includes modernization related expenditure. The Capital allocation for Ministry of Defence under BE 2018-19 is 33.1 percent of the total Central Government Expenditure on Capital Account, which is Rs 3,00,441 crore.

For Defence Pension, which is over and above the outlay mentioned above, an amount of Rs. 1,08,853.30 crore has been provided in BE 2018-19. This is 26.60 percent above the BE 2017-18 of Rs. 85,740 crore and 14.26 percent over RE 2017-18 of Rs. 95,000 crore.

The approval for the construction of Sela pass has given further impetus to the Defence preparedness.

Source: PIB

Modernization of Armed Forces

Modernization of Armed Forces 

Ministry of Defence

13-March, 2015

Budget allocation for modernization of armed forces under the Revised Estimates has been fully used during the last three years.  Details for the same including for the current year are as follows:-

(` in crore)

Year	BE	RE	Actual Expenditure	%age utilization w.r.t. RE
2011-12	56510.49	53292.30	56281.88	105.61
2012-13	66032.24	57395.46	58768.86	102.39
2013-14	73444.59	66406.41	66850.30	100.67
2014-15	75148.03	66151.73	56776.47	85.83

Note:- Actual expenditure for 2014-15 is upto February, 2015.

Utilization of Defence budget is monitored by means of the financial compilation prepared by Controller General of Defence Accounts (CGDA) which captures the details of defence expenditure incurred all over the country. The progress of expenditure is reviewed periodically at various levels in the Ministry and Service Headquarters to identify any areas where expenditure may be lagging.   This helps to identify and resolve any problems in implementation of planned activities.

The desired capability defines the equipment to be procured. Towards this end, a number of proposals for increasing the combat capacity and mobility of Infantry are listed in the Long Term Integrated Perspective Plan.

The expenditure being incurred on modernisation is as an outcome of implementation of the Long Term Integrated Perspective Plan (LTIPP), which is sub-divided into five-year Services Capital Acquisition Plans (SCAP), which in turn form the basis of the Annual Acquisition Plans.

This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Ram Kumar Sharma and others in Lok Sabha today.

DM/NAMPI/HH/RAJ

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