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Defence Budget's Arcane Format Makes It a Largely Unresolved Puzzle

Defence Budget s Arcane Format Makes It a Largely Unresolved Puzzle
If the definition of Indiaâs defence budget is suitably aligned with analogous international practice, it can do away with the ambiguity that presently prevails.
India s Akash missiles, mounted on a truck, are displayed during the Republic Day parade in New Delhi January 26, 2007. Credit: Reuters/B. Mathur/Files
Government22/Feb/2021
Like most official documents, Indiaâs defence budget is a mystifying puzzle, necessitating a mix of patience, intellectual dexterity, experience, and informed guesswork to decipher it. Even then, one is almost certain to not get an accurate picture. Fundamental questions like how much has been allocated for defence expenditure during a particular fiscal and what has been the increase vis-Ã -vis the previous year can elicit varying responses. ....

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The challenge of ballooning defence pensions in India

The challenge of ballooning defence pensions in India
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The Union budget was rightly praised for its honesty and transparency, for its boldness in ignoring the largely unfounded fear of a sovereign credit rating downgrade, and also for its clear articulation of a privatization strategy. Of course, much euphoria was on account of the relief of no new taxes, not even a covid cess, nor a wealth tax on the super-rich. But as the dust and euphoria settles, a sober examination of the budget is necessary. Can the large deficit be funded without causing interest rates to go up? Will its fiscal stimulus have a multiplier effect on aggregate growth? ....

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