Defence: No big bang

That China is rapidly modernising its Armed Forces is evident from the double-digit growth in defence spending for the last two decades. According to the Stockholm International Peace Research Institute, its annual defence spending rose from over $30 billion in 2000 to almost $120 billion in 2010. The total military spending in 2012, based on the latest announcement from Beijing, is around $160 billion. Reduction in defence spending will be the main target for US’s deficit reduction programme for the next ten years --- yet, US spends more than four times of that of China. While defence expenditure has steadily declined in Europe, Russia alone plans to spend more on that account.

BUDGET FEELERS

Never mind all these developments in the globe. India, vilified as the largest importer of weapons, is nowhere near these countries -- not only in spending but also in keeping up with the pace of technological developments. Its efforts at achieving taint-free acquisition, what with blacklisting of leading arms manufacturers and cancellation of contracts, have stalled the process of defence modernisation. Defence deals are mired in political battles like the present deal with Augusta Westland, which is more about VVIP movement.

This time around, enough hints about the defence budget were available from the speech of the Raksha Mantri during the recently held Aero 2013 in Bangalore. He said, “The government is passing through a difficult phase, the recession is affecting us. There will be a cut in the capital and revenue budget. However, we will not cut the expenditure on operational preparedness.” He also said that he would be slashing defence imports and place increasing emphasis on indigenisation of weapons.

To some extent, the Finance Minister in his Budget allayed our apprehensions by not ‘slashing’, but by allowing a modest increase of 14 per cent over revised estimates of Rs.178,503 crore, or 5 per cent over Budget estimates – the lowest increase in the last three years, at Rs 2,03,672 crore with Rs 86,741 crore for capital acquisition. It is now for the Ministry of Defence to ensure that the money is spent in time for the essentially needed multi-role combat aircraft, Apache attack helicopters, heavylift choppers and howitzers.

DEFENCE RESEARCH

What is disappointing, however, is the allocation for defence research remaining at around Rs 10,600 crore and plant and machinery expenditure at Rs 435 crore. This is not at all in keeping with the sentiments expressed in favour of rapid indigenisation. No other monetary incentive was also announced for increasing private sector participation in defence production. In the 188 paragraphs, the Finance Minister disposed of the requirements for defence in para 101 in two sentences, repeating the well-worn cliche uttered by every Finance Minister since the days of Chinese aggression: “constraints will not come in the way of providing any additional requirement for the security of the nation”.

While the Air Force and Navy seem to be satisfied with the allocation, the real worry in defence is the “critical operational requirements” of the Army which wanted over Rs 10 lakh crore for the 12th Plan (2012-17) period to acquire new capabilities and plug huge operational gaps in artillery, aviation, air defence, night-fighting, ATGMs (anti-tank guided missiles) and specialised tank and rifle ammunition. Moreover, a crucial project during the 12th Plan is to raise the new mountain strike corps, for “rapid reaction ground force capability” against China. All in all, a tentative exercise.

COMMENT NOW