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(based on an analysis by Dr Laxman Kumar Behera)
Downward Revision of Defence Budget 2012-13
Although the defence budget 2013-14 has been increased by a modest 5.3%, the growth rate still is a hefty 14.1% over the revised allocation for 2012-13. The difference in these growth rates is due to cut of $2.7 billion (or 7.7%) from the original allocation for 2012-13. Of the total reduction, 67% is accounted for by capital expenditure (most of which is spent on modernisation) which has been cut by $1.8 billion (12.6%). Of the total reduction in capital expenditure, 65% is accounted for by the Navy whose modernisation budget has been reduced by $1.2 billion (26.9%), partly because of slippage of delivery of the aircraftcarrier INS Vikramaditya by almost one year, to late 2013. The revenue expenditure (or the running or operating expenditure) on the other hand is revised downward by $0.9 billion (4.3%).
Share of Army, Navy, Air Force, DRDO and OFs
India's official defence budget is meant for five main organisations that include the three armed forces (Army, Navy and Air Force), the state controlled Defence Research and Development Organisation (DRDO) and the 40-odd Ordnance Factories (OF). Among the organisations, the Army with...