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Military Capabilities

Indian military concerned about budget shortfall for modernisation programmes

12 February 2019
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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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