Click to play videoNew Delhi: The 23 per cent hike proposed in Defence spending in the Interim Budget seems to send a political signal that national security is high on the United Progressive Alliance Government's agenda.
But a closer look reveals that much of the Rs 27,000 crore hike will not buy weapons but merely fund an inflated salary bill for the military.
The Mumbai terror attack was cited as the provocation for the Rs 27,000-crore hike in the budgetary allocation for Defence.
"Our security environment has deteriorated considerably. In this context, I propose to increase the allocation for Defence, which is part of non-plan expenditure, to 1,41,703 crore. This will include 54,824 crore for capital expenditure," said acting Finance Minster Pranab Mukherjee while presenting the Interim budget in the Lok Sabha on Monday.
A fattened war chest seems to be just what the doctor ordered for beefing up India's military readiness in challenging times.
So it seems. But the devil is in the detail.
A closer look reveals that 41 per cent of this increase will not buy desperately-needed weapon systems but merely fund the salary increase for the military.
Following the Sixth Pay Commission Report, salaries will consume over Rs 46,100 crore, which is a third of the Defence Budget.
The 1.2 million strong Indian Army alone accounts for 80 per cent of this salary bill.
Also, the continuing inability to fully utilise the Defence Budget for the ninth year in a row makes the Rs 54,000 crore set aside for buying new weapons look less impressive.
Over Rs 7,000 crores from the capital outlay for Defence for 2008-09 have been surrendered.
It means that budgetary allocations do not fully translate into military capability.
So, while the government can claim that it is giving due priority to national security, the profile of Defence spending to prepare for military challenges will not change dramatically.
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