02-26-2010, 05:51 PM
[size="6"]India Expects 5-7% Increase in Defense Spending[/size]
NEW DELHI - Indian Finance Minister Pranab Mukherjee will announce the 2010-2011 defense spending proposal Feb. 26, with a 5 percent to 7 percent budget increase expected, Defence Ministry sources said.
The allocation for financial year 2009-10 is $28.9 billion.
The Defence Ministry again will surrender nearly $1 billion of unspent funds, ministry sources said. The Defence Ministry has returned money each of the last three years as delays in finalizing contracts have prevented all the funds from being spent.
In the current year, most of the unspent money is tied to delays in completing a program to acquire 155mm howitzer guns.
Funding levels are not a problem for the ministry, said Mahindra Singh, a retired major general, but procurement delays remain a bottleneck.
NEW DELHI - Indian Finance Minister Pranab Mukherjee will announce the 2010-2011 defense spending proposal Feb. 26, with a 5 percent to 7 percent budget increase expected, Defence Ministry sources said.
The allocation for financial year 2009-10 is $28.9 billion.
The Defence Ministry again will surrender nearly $1 billion of unspent funds, ministry sources said. The Defence Ministry has returned money each of the last three years as delays in finalizing contracts have prevented all the funds from being spent.
In the current year, most of the unspent money is tied to delays in completing a program to acquire 155mm howitzer guns.
Funding levels are not a problem for the ministry, said Mahindra Singh, a retired major general, but procurement delays remain a bottleneck.