Army left with 41% of allocated funds

BS Reporter / New Delhi February 26, 2009, 1:35 IST

The Army is yet to spend 41 per cent of the funds allocated for purchasing equipment in the 2008-09 Budget. The
revised estimate of funds allocated to procure equipment in 2008-09 was Rs 15,615.5 crore, of which Rs
9,220.22 crore, or 59 per cent, have been spent so far.

Announcing these numbers, in a reply to a written question in the Rajya Sabha today, Defence Minister AK
Antony said the remaining funds would be utilised by the end of the financial year.

There had been no large-scale equipment procurement, said Antony, adding, this process was used only when
there was an immediate operational requirement, such as purchasing equipment for the Coast Guard, which
needed to be strengthened after last year’s Mumbai terror attacks exposed loopholes in the country’s maritime
security.

Even as more funds are allocated for upgrading armed forces, underutilisation of funds continue to be the main
stumbling block.

According to the 2009-10 Interim Budget figures, the armed forces returned Rs 7,007 crore, of which the Army
accounted for Rs 2,077 crore. The Navy and Air Force returned Rs 3,238 crore and Rs 1,117 crore, respectively.

This year, the Army received the largest share of the defence budget with an allocation of Rs 76,680 crore. The
Air Force and Navy got Rs 34,432 crore and Rs 20,604 crore, respectively.

Antony said the maximum expenditure for purchases took place in February and March as this period marked a
culmination of a long process, involving detailed requirement studies and large amount of money.