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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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