NEW DELHI — Contrary to media reports here that defense spending is likely to be reduced, sources in the Indian Finance Ministry sources said there is no such proposal before them to reduce defense allocations. to defense.
Media reports had said here say the Indian Defence Ministry will faces a budget defense cut of about $1.8 billion in the next financial year, which begins budget April 1, because of the worsening fiscal deficits. ratios here. 2013 to March 2014.
However, sources told Defense News that there is no such proposal has been made, and adding that funds actually would in fact be increased to buy new fresh weapons and equipment. The next defense spending proposals will be announced in the last week of February.
The Defense buying power allocation for the current year has already suffered because the value of the Indian rupee has fallen against the U.S. dollar; and the $38.6 billion allocation made at the beginning of the financial year at $38.6 billion is now worth only $35.1 billon. as the Indian Rupee has fallen from 50 Rupees to 55 Rupees against one U.S.D.
Sources in the Indian Finance Ministry sources said the currency fluctuation will be taken into account when at the time of the budget is prepared, allocation, and reiterated that there is no proposal to slash defense spending.
Media reports here had said that defense spending would be reduced because of the worsening s fiscal deficit ratios here.
A Defence Ministry official said, “[lack of] funds will not come in the way of the modernization of the defense forces.”
Defense analysts here say defense spending cannot be cut while at this stage when India is trying to bolster shore its troops and equipment material along the Chinese border. with China.
“Indian Army plans to raise 40,000 additional troops to be deployed along the border with China which would require more funds. India cannot afford to reduce defense spending despite the constraints of the economy,” said Nitin Mehta, defense analyst.