National security: How India can secure much-needed funds for defence

Experts say increasing the defence budget as a share of GDP even by ten basis points could significantly increase access to funds

Following the national security challenges that emerged after the Pulwama terror attack in February 2019, the National Democratic Alliance (NDA) government that year issued additional terms of reference for the 15th Finance Commission (FFC). In July 2019, as part of the reference, the finance ministry asked the FFC to examine whether a separate mechanism for funding defence and internal security ought to be set up and, if so, how such a mechanism should be operationalised.

 

Six years later, in the wake of the Pahalgam terrorist attack on April 22 and subsequent military conflict between India and Pakistan after the Indian