Military uses up 35.99% of capital in first six months.
In an unusual departure from trend, all three arms of the military have recorded massive jump in capital budget spending in the first six months of this financial year. The leap flies in the face of persistent criticism that the forces’ modernisation was suffering due to blacklisting of foreign defence firms and AK Antony’s cautious approach.
According to figures accessed by DNA, the defence ministry has already spent 35.99% of the capital acquisition budget in the first six months of 2009-10. The corresponding figure last year was 13.65%.
In recent years, the army, air force and navy have been returning thousands of crores of rupees almost annually to the government after failing to spend them before the financial year ends in March. In the last financial year, 2008-09, the three services together returned Rs7482.35 crore from the capital outlay. Rs4923.38 crore was returned in 2007-08.
The defence budget is allocated under two heads — capital budget for major acquisitions and revenue budget for salary and other expenses.
Going by mid-year review of budget spending, it seems all three services and MOD are on an overdrive to spend early this financial year. And the figures belie the perception that defence clearances have slowed down under a cautious Antony. Of the Rs40367.72 crore allotted for this year’s capital acquisitions, the defence ministry had spent Rs14530.07 crore by September-end. The most eager spender was the air force, with big-ticket purchases like C-130J Hercules aircraft (in picture) from the US and medium range surface to air missiles from Israel. The air force has already committed 44.94% of its capital outlay, or Rs8454.88 crore of Rs18814.64 crore. The navy has spent 33.28% or Rs3807.26 crore of the capital outlay of Rs11438.88 crore and the army 22.75% of its total capital outlay of Rs9821.07 crore. The reason the army spent just Rs2234.76 crore could be due to delay in artillery programmes.
The joint staff that looks after tri-service institutions such as Andaman and Nicobar Command and the National Defence Academy has spent only 11.32% (Rs33.17 crore) of its Rs293.13 crore outlay.
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