India’s finance ministry rejects proposal for defence roll-over fund

21 December 2017

A proposal by India’s Ministry of Defence (MoD) to establish a fund through which unspent annual expenditure would be rolled over into a following year’s defence budget has been rejected by the Ministry of Finance (MoF), a report by India’s Standing Committee on Defence has said.

The report, which was submitted to parliament on 19 December, said the MoD’s suggestion to create what it termed as a “non-lapsable capital fund” had not been accepted by the MoF on several grounds including its contention that India’s defence budget is sufficiently large to source necessary modernisation funds.

The report printed a letter from the MoF, in which it stated that “adequate budget provision” is made available to the MoD and that the proposed fund would “yield no additional advantage” to the MoD because the release of such capital would require parliamentary approval.

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