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Defence budget may leap by 15-20 per cent

Tara Shankar Sahay in New Delhi

The defence budget for the year 2000-2001 will be around Rs 650 billion indicating a quantum leap of 15 to 20 per cent, according to top sources in the ministry of defence.

The sources told rediff.com that "major gaps" in India's defence preparedness had become too obvious with the Kargil war.

"Our defence community has emphasised that the Kargil war has tellingly brought out the chinks in the armour of the country's defence preparedness for which urgent measures are necessary," the sources pointed out. They said the Indian armed forces have demanded that, to meet any eventuality like Kargil, they had to be adequately prepared.

It was indicated that the complexities of high-altitude warfare and low intensity conflict ought to be urgently addressed, given the fact that this is likely to be a threat for quite some time.

According to the sources, Defence Minister George Fernandes had announced that the pace of the modernisation of the armed forces, which had slowed down, was going to be accelerated under the Atal Bihari Vajpayee government.

They said that a supplementary grant of Rs 80 billion had been sought by the three services. This was over and above the Rs 450 billion allocated in the year 1999-2000 defence budget.

Thus, the 1999-2000 defence budget would touch Rs 530-540 billion, an all time high since Independence, they pointed out, adding that this would constitute around three per cent of the GNP. Economists had said this was within reasonable bounds.

It is understood that the maximum demand has been made by the Indian Army, followed by the Indian Air Force and the Indian Navy.

In the process, some of the pending demands like the acquisition of the advance jet trainer, an aircraft carrier and T-90 tanks are being pressed by the three services. According to the indications available in the MoD, these demands are likely to be fulfilled in the financial year 2000-2001, the sources pointed out.

The sources underscored that, in real terms, the impending defence budget would register an eight-10 per cent increase.

It was conceded that a "fundamental question" had been raised whether the Indian economy could sustain this level of defence expenditure.

The sources referred to the recent assertion of senior defence officials that "the need of the hour" is to re-equip the armed and the para-military forces to fight the LIC against Pakistan. This would mean adequate strengthening of the para-military forces.

The sources said senior defence officials had been arguing that the role of the armed forces should be restricted to meeting any external aggression and not fighting an LIC as was witnessed at the time of Kargil.

The sources pointed out that an intense debate is raging in the ruling National Democratic Alliance and a " broad consensus is emerging that while the para-milittary forces should take a more active role in meeting the challenge posed by the LIC, the armed forces should only supplement their efforts.

This implied a close coordination between the para-military and armed forces in combating the LIC, the sources added.

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