China News Service February 18th According to China National Defense Science and Technology Information Network, India recently proposed that the new fiscal year beginning on April 1 will increase defense spending by 10%, compared with 9% increase in procurement budget last year. The planned procurement of new weapons and equipment in the plan only increased by 3.28%.
Indian Finance Minister Chidambaram announced on February 17th that the defense spending for 2014-2015 will be 2.24 trillion rupees (about $36.3 billion), compared with 2013. – Defense spending in 2014 was Rs 2.36 trillion. As the rupee weakened last year, the defense budget was only equivalent to $33.95 billion. The procurement budget for weapons and equipment for the next fiscal year was $14.93 billion, compared with $14.56 billion for equipment procurement in the current fiscal year.
A new government will announce its budget after the May election, when the budget allocation proposed by Chidambaram may change. The medium-term budget submitted by Chidambaram only dominates the expenditure for the next four months.
The funds available for the purchase of new weapons and equipment last year have shrunk dramatically because the rupee’s exchange rate against the dollar has depreciated by more than 10%, and funds for weapons and equipment have been diverted to other uses.
According to the Indian Ministry of Defence, Chidambaram has misappropriated $1.3 billion in the budget for the purchase of weapons and equipment, most of which is used to pay wages, pensions and other daily equipment for the troops.
The misappropriation of the funds affected several defense projects, including the purchase of Boeing’s $1.16 billion AH-64D“ Apache & Helicopter; Boeing’s $8.33 billion worth of slavery. Heavy-duty helicopters; and purchased 145 light howitzers worth $583 million from BAE Systems’ US subsidiary.
The future of a defense project in progress can only be determined by the next government decision that is expected to take over in June.
Responsible Editor: Liu Yang