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Saturday, January  14,  2006

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   Army Not Using Budgeted Funds

 

Federal Defense Minister Pranab Mukherjee has publicly chided the Indian Army for not using the funds for weapons acquisition. Unlike the Navy & air Force, the Army has used only 43% of the budget meant for defense capital purchases. Under new Finance Ministry directive to prevent expense bunching, Government ministries may not spend more than 33% of defense outlays in a single quarter. Ministries, which do not spend the money, need to return the allocations to the Government. It is not clear why the Army has not spent the money. In the past, lack of political involvement, understanding, consensus, and scandals have delayed defense spending and procurement. These delays have been so pronounced that it had seriously eroded defense preparedness.












 



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