Union budget 2012-13
Defence spending up, but way behind China’s
Gets 17% hike, but is just 40% of what Beijing spends
Ajay Banerjee/TNS
New Delhi, March 16
India announced a justifiable 17.6 per cent hike in its defence spending to allocate an additional Rs 28,992 crore for 2012-13, over the ongoing year’s Rs 1,64,415 crore defence budget. New Delhi will spend Rs 1,93,407 crore, nearly $38.6 billion, on defence which is about 11 per cent of the entire country’s budgetary outlay for the next financial year staring April 1.
Around Rs 79,579 crore, it was Rs 69, 199 crore last year, have been earmarked for capital expenses like for new acquisitions of weapons, warplanes, warships, equipment, naval dockyards and special classified projects. Last year, India had affected a hike of 11.59 per cent in its defence spending.
Finance Minister Pranab Mukherjee said this allocation was based on the present needs projected by the Defence Ministry and further needs for security would also be met. India’ budgetary hike comes just weeks after China announced a $106 billion military budget, taking its military spending into the triple digit figures for the first time.
In other words, India would be spending some 40 per cent of what China spends on its Defence. The core US defence budget, not including its war funding, has been projected $525 billion for the same period. Pakistan has a defence outlay of $5.75 billion for 2011-12, a raise of 12 per cent.
Today’s hike, when seen from the revised budget allocation for this year, works out to be a 13.15 per cent. Interestingly, the share of India’s defence spending out of its gross domestic product (GDP) has gone up slightly. It now stands at 1.90 per cent of the GDP, up from 1.84 per cent for the ongoing fiscal.
A World Bank report in 2011 said China’s military expenditure was last reported at 2.01 of its GDP in 2010. China’s economy is much bigger than India’s hence the 2 per cent of GDP translates into billions of dollars more.
In India successive Standing Parliamentary Committees on Defence have recommended allocation to be raised to at least 3-3.5 per cent of the GDP if the armed forces are to rapidly modernise. In the past, Prime Minister Manmohan Singh and Defence Minister AK Antony, on separate occasions, have pitched for a 3 per cent share of the GDP for defence.
Defence spending up, but way behind China’s
Gets 17% hike, but is just 40% of what Beijing spends
Ajay Banerjee/TNS
New Delhi, March 16
India announced a justifiable 17.6 per cent hike in its defence spending to allocate an additional Rs 28,992 crore for 2012-13, over the ongoing year’s Rs 1,64,415 crore defence budget. New Delhi will spend Rs 1,93,407 crore, nearly $38.6 billion, on defence which is about 11 per cent of the entire country’s budgetary outlay for the next financial year staring April 1.
Around Rs 79,579 crore, it was Rs 69, 199 crore last year, have been earmarked for capital expenses like for new acquisitions of weapons, warplanes, warships, equipment, naval dockyards and special classified projects. Last year, India had affected a hike of 11.59 per cent in its defence spending.
Finance Minister Pranab Mukherjee said this allocation was based on the present needs projected by the Defence Ministry and further needs for security would also be met. India’ budgetary hike comes just weeks after China announced a $106 billion military budget, taking its military spending into the triple digit figures for the first time.
In other words, India would be spending some 40 per cent of what China spends on its Defence. The core US defence budget, not including its war funding, has been projected $525 billion for the same period. Pakistan has a defence outlay of $5.75 billion for 2011-12, a raise of 12 per cent.
Today’s hike, when seen from the revised budget allocation for this year, works out to be a 13.15 per cent. Interestingly, the share of India’s defence spending out of its gross domestic product (GDP) has gone up slightly. It now stands at 1.90 per cent of the GDP, up from 1.84 per cent for the ongoing fiscal.
A World Bank report in 2011 said China’s military expenditure was last reported at 2.01 of its GDP in 2010. China’s economy is much bigger than India’s hence the 2 per cent of GDP translates into billions of dollars more.
In India successive Standing Parliamentary Committees on Defence have recommended allocation to be raised to at least 3-3.5 per cent of the GDP if the armed forces are to rapidly modernise. In the past, Prime Minister Manmohan Singh and Defence Minister AK Antony, on separate occasions, have pitched for a 3 per cent share of the GDP for defence.
Source :Tribune
Exp:56%
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