Defence allocation and China threat: In this budget, FM will have to bite the bullet
The unexpected new front opened by China in Ladakh in 2020 has multiple repercussions for India – from the tactical to the strategic level. However, the sharpest short-term impact will be it straining the already stretched defence budget of the three armed forces.
The year gone back has brought massive operational challenges that led to the army and air force resorting to emergency purchases for things ranging from ammunition to winter weather clothing and small arms.
A precise figure has not been put to the excess in spending, but the army has already moved the government for an enhanced allocation at the Revised Estimates stages, which could easily exceed over Rs 10,000 crore on the revenue side, given the emergency procurements.
The Ladakh factor is also expected to prevail over the coming years and a new front that will now need to be guarded at all times will come at a cost that needs to be factored in when the defence budget is allocated.
In simple terms, when it comes to pure hardware and resource mobilisation, it is well known that the PLA has a significant advantage.
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