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View: Creating air of certainty for services, defence budget and the way forward
The MoF should shed its adhocism in defence allocations and make some bold moves which will create an air of certainty for the services.
Synopsis
It is a fact that defence capital allocations have been steadily increasing over the past five years. In 2020-21, this was at an all-time high of ₹11,3734 crore. What leads to uncertainties is the sudden budget cut in the last quarter which the ministry of finance (MoF) does as a matter of course.
On the face of it, defence allocations in the Union Budget (2021-22) have more or less been on the beaten track. There has not been any significant increase in the total allocation, including pensions, which stood at ₹47,8165 crore compared to ₹47,1378 crore in 2020-21. While allocation for pension has been reduced by ₹18,000 crore because of the exclusion of arrears it is heartening that capital allocation, critical for modernisation and
BY
G MOHAN KUMAR
ET CONTRIBUTORS
6 mins read, Last Updated:
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