Defence Ministry Working On New Budget Model With 5 Year Modernisation Plan In Sight

To use funds more efficiently and effectively and enhance capital expenditure, the Defence Ministry has started working on a new budget model which is based on a five-year overall plan for military procurement, sources in the ministry said on Thursday. The current budget for defense is Rs 3.18 lakh crore, which is, 1.6 percent of the Gross Domestic Product (GDP) which is said to be the lowest in many decades. According to experts, is the lowest since the 1962 war.

Sources said that the budget is now being made looking into a five-year modernization plan and it is very important for the defense forces.

It was Defence Minister Rajnath Singh who asked the forces to give a plan for their five-year requirements so as to make changes in future budget allocation.

This is being done for "better utilization of funds" and also ensure that there is no "lapse of funds" at the year-end. "It will also enhance the efficiency in procurement," sources said. Earlier, the budget of defense was made looking into GDP so the budget was totally dependent on fluctuations in GDP. But now it would be made looking into forces requirement. For current fiscal, finance minister Nirmala Sitharaman allocated Rs 3,18,931 crore for Defence, which will only take care of committed liabilities of the forces.

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