Rediff On The NeT: Supplementary defence budget on its way

Govt plans supplementary defence budget to address security concerns

A supplementary defence budget to meet the armed forces's additional requirements for the current financial year is being finalised.

Defence Minister Mulayam Singh Yadav confirmed that proposals for urgent requirements are being prepared in his ministry. These would be ready for submission to the finance ministry in about a week's time.

The monsoon session of Parliament is to commence on July 23. If necessary, a supplementary budget can be brought forth during this session itself.

During his Budget speech, Finance Minister Palaniappan Chidambaram, while allocating Rs 356.2 billion for defence, had assured that the government would provide more funds if needed.

This was reiterated by both the prime minister and defence minister who time and again said that no compromise would be made with the national security. A resource crunch, both said, would not be allowed to come in the way of defence preparedness.

Last year, the government had brought forth a supplementary budget for defence, stepping up the allocation for 1996-97 by Rs 12 billion.

The supplementary budget do not come as a surprise. Chidambaram's Budget with the 'substantial' 28.14 per cent hike in defence outlay, many defence experts had pointed out earlier, would fall severely short. The hike, like in the past several years, they claimed, barely neutralised the prevailing inflation rate if one discounted the Rs 36.2 billion which was to go towards meeting the Fifth Pay Commission obligations.

The Rs 78.22 billion increase, when compared to the Rs 277.98 budget estimate for the previous year, fall significantly to Rs 61.22 billion, as compared to the revised estimates of Rs 294.98 billion (1996-97).

Thus, the hefty 28.14 per cent hike in defence outlay translates to just 20.75 per cent, and the actual increase for defence is barely Rs 25.02 billion.

Major defence projects include importing two submarines, indigenous construction of another two, as well as an air defence ship (to replace the retired aircraft carrier INS Vikrant), frigates, advanced jet trainers and T-72 tanks for the army.

Further, at least 12 more Sukhoi-30 warplanes are to arrive from Russia. Eight of the 40 planes contracted for have already been inducted into the Indian Air Force.

After the Budget session, Mulayam Singh had said supplementary demands for grants would take into account the 'extra-budgetary' defence requirements.

1997-98 is the 10th year in running when defence allocation in real terms has fallen. From 1987, at constant prices in real terms, defence allocation had declined from about 4 per cent of the GDP to about 2.3 per cent.

UNI

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