Hindu Editorial Analysis : 23-December-2023

In recent developments, the parliamentary standing committee on defense has advocated for a benchmark percentage of the Gross Domestic Product (GDP) to be allocated to defense. This essay delves into the status of India’s defense budget for the financial year 2023-24 and explores the evolving needs and concerns regarding the nation’s defense preparedness.

Status of Defense Budget: A Financial Overview
  • The Union Budget for 2023-24 outlines a total outlay of Rs 45,03,097 crore.
  • The Ministry of Defence receives a total budget of Rs 5,93,537.64 crore, constituting 13.18% of the overall budget.
  • Notably, Rs 1,38,205 crore is allocated for Defence Pensions.
  • This budget reflects a significant increase of Rs 68,371.49 crore (13%) compared to the 2022-23 budget.
Need for Defense Budget: Shifting Priorities in a Changing Global Scenario
  • Initial military planning aimed at a short, intense conflict, but recent events, such as the Russia-Ukraine war, have prompted a reassessment.
  • The armed forces now anticipate an extended war scenario, necessitating a focus on modernization and self-reliance in arms production.
  • Given ongoing tensions with China and Pakistan, particularly along borders, India must prioritize readiness in the Malacca Strait and the Indian Ocean.
  • The large size of the Army requires substantial budgetary allocations for modernization.
Concerns: Budgetary Constraints and Impact on Deterrence
  • India’s defense budget as a percentage of GDP has remained between 1.8 to 1.97%.
  • Defense expenditure as a percentage of central government expenditure has decreased from 16.4% in 2012-13 to 13.3% in 2022-23.
  • The shortfall of ₹13,746 crore in the capital acquisitions budget for 2023-24 raises concerns about the adequacy of resources.
  • Elections in 2024 may further impact defense allocations, potentially affecting India’s deterrence posture.
Parliamentary Panel Recommendations: Toward a Definitive Trajectory
  • The parliamentary panel emphasizes the need for a fixed percentage of GDP for the defense budget, aligning with global standards.
  • Specific recommendations include a focus on developing futuristic drones and electronic warfare systems to address evolving security challenges.
  • The global benchmark of three percent for defense expenditure as a percentage of GDP is highlighted, or alternatively, exploring a benchmark aligned with India’s GDP.
Why In News

The parliamentary standing committee on defence recommended a benchmark percentage of GDP for defence allocation, emphasizing the critical need to ensure a robust and well-funded national security apparatus that aligns with evolving geopolitical challenges.

MCQs about Examining Defense Budget Dynamics and Future Strategies

  1. What percentage of the Union Budget for Financial Year 2023-24 is allocated to the Ministry of Defence?
    A. 10%
    B. 13.18%
    C. 16%
    D. 20%
    Correct Answer: B. 13.18%
    Explanation: The Ministry of Defence has been allocated 13.18% of the total budget for the year 2023-24.
  2. What is the primary reason for the shift in India’s military planning?
    A. Ongoing tensions with Pakistan
    B. Russia-Ukraine war
    C. Elections in 2024
    D. Strategic focus on the Malacca Strait
    Correct Answer: B. Russia-Ukraine war
    Explanation: The shift in military planning is prompted by the events of the Russia-Ukraine war.
  3. Over the years, what trend has been observed in India’s defense expenditure as a percentage of GDP?
    A. Consistent increase
    B. Fluctuating pattern
    C. Steady decline
    D. Sharp rise in recent years
    Correct Answer: C. Steady decline
    Explanation: India’s defense expenditure as a percentage of GDP has been declining, ranging from 1.8% to 1.97%.
  4. According to the parliamentary panel’s recommendations, what global benchmark percentage for defense expenditure as a percentage of GDP is highlighted?
    A. 1%
    B. 2%
    C. 3%
    D. 5%
    Correct Answer: C. 3%
    Explanation: The parliamentary panel suggests aligning with the global standard of three percent for defense expenditure as a percentage of GDP.

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