Military Capabilities

Indian military concerned about budget shortfall for modernisation programmes

12 February 2019

The Indian Navy (IN) and Indian Air Force (IAF) have expressed "grave concern" over what they describe as a "severe shortfall" of modernisation funds in India's defence budget for fiscal year 2019/20 (FY 2019/20).

The budget, which was announced on 1 February, allocates fewer funds to the IN and the IAF for modernisation than what these services already owe in terms of 'committed liabilities' - annual payment of instalments for previously acquired equipment - thus leaving no funds for materiel procurements and upgrades.

The IN, for instance, is set to receive INR231.56 billion (USD3.26 billion) as capital expenditure for FY 2019/20, while its outstanding balance for committed liabilities and various ongoing upgrade programmes amounts to INR254.61 billion, leaving a deficit of INR23.05 billion.

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