Defence budget and delayed acquisition
Poor state of the financial affairs of the country has ensured that the defence budget will not be a game changer in the coming financial year. The Indian armed forces are already feeling handicapped because of inordinate delay in finalizing cabinet sanctioned major defence acquisition plans and the reduced actual provisions for the three services will bother Indian strategic observers in the coming year.
The interim defence budget for the year 2014-15 has shown a ten percent rise but in actual terms, in foreign exchange, the total outlay has declined and what has concerned Indian defence observers is the actual decline in the purchasing power of the meager enhancement in the capital outlay.
The interim budget, which can be enhanced in the final budget to be presented by the new government in June this year, has caused concerns in strategic circles. In the 2013-14 financial year the MoD was not able to finalize any major defence deal, though CCS approvals for many deals are lying on the table of the Defence Minister.
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