Date:16/05/2006 URL: http://www.thehindu.com/2006/05/16/stories/2006051606491300.htm

National

Centre keen on increasing defence purchases

Special Correspondent

"Optimal resource utilisation for defence sector is a daunting task"

Government committed to modernising the armed forces rapidly

Powers on capital acquisitions to be delegated to lower levels

NEW DELHI: Defence Minister Pranab Mukherjee on Monday said the Government was keen on increasing the share for purchasing high-value defence platforms from 42 to at least 50 per cent of the defence budget.

Inaugurating a three-day conference of the Principal Controllers and Controllers of Defence Accounts here, the Minister said the average growth in the defence budget over the past seven years was around 9.5 per cent per annum. The share of capital expenditure (defence equipment) had grown from around 25 per cent during 2000-01 to nearly 42 per cent in the current financial year. This underscored the Government's stress on rapid modernisation of the armed forces, he said.

However, he said optimal resource allocation for defence within the Central Government outlay would continue to be a daunting task, given the obligation of reducing the Centre's debt and subsidy burdens under the Fiscal Responsibility and Budget Management Act.

Mr. Mukherjee asked defence accounts officers to thoroughly understand the vision of the armed forces to evolve a rational decision-making system. He said his Ministry planned to delegate powers on capital acquisitions.

The new Controller-General of Defence Accounts, Jnan Prakash, delivered the welcome address. Minister of State for Defence Production Rao Inderjit Singh and Minister of State for Defence M.M. Pallam Raju also spoke.