Air force sans planes?

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| Everyone knows that the business of defence procurement has been a victim of repeated scandals, starting with that over Bofors howitzers 20 years ago. The common refrain is that officers are chary of taking a position on any weapon for fear of being tarred later, and therefore no acquisition decisions get taken. Various defence ministers in the last two decades have tried to put in place new systems and procedures that would simultaneously curb corruption (remember the Tehelka tapes), and speed up the acquisition process. Nothing seems to have worked so far. |
| One result is that budget outlays for defence hardware have remained unspent year after year. This shows up in the sharp drop in defence expenditure as a share of GDP. Since the economic reforms that began in 1991 included fiscal correction, defence spending has been one of the areas where there has been a significant squeeze applied. In almost no year since then has defence spending been more than 2.5 per cent of GDP, and the current level is close to a historic low of 2.25 per cent. In contrast, the norm in the two decades to 1991 was between 2.5 per cent and 3 per cent, peaking in the later 1980s at 3.38 per cent, which is when Bofors happened. The appropriate level of spending on defence depends on many factors, including threat perceptions and the overall security environment. Observers have noted that in the Indian context, the appropriate level would be 3 per cent of GDP. If so, there is significant under-spending on defence, and somewhat dangerously the squeeze has been applied hardest on hardware acquisition""as might be expected, because the soldiers have to be fed and paid and therefore no cuts can be applied on routine day-to-day costs. The air chief's letter to the defence minister suggests that this drawn-out process has created a dangerous situation in terms of fighting capability. Does the government have a response? |
First Published: Oct 05 2006 | 12:00 AM IST