How the sale of defence land can help in creating a new fund for military modernisation
1/5
Land sale proceeds
With the government preparing to sell defence land to create a new fund for military modernisation, the finance ministry has proposed that only half the money raised be given to the armed forces and the rest be channelled into the Consolidated Fund of India.
2/5
Funding procurements
ET has learnt that the finance ministry has proposed that the fund be initially created with the proceeds of monetisation of defence land. This would involve identifying surplus land available with the armed forces, especially in urban areas where several large such holdings exist.
3/5
Funding budget deficit
As reported earlier, the three services have been allocated significantly lower budgets this year than their projected expenditure which is likely to impact modernisation plans. There was a Rs 1.24 lakh crore gap this year between what the armed forces projected as expenses and the allocation given by the finance ministry.
Amazon Top Deals
POWERED BY
atomberg Studio Smart+ 1200mm BLDC Ceiling Fan with IoT & Remote | BEE 5 star Rated Energy Efficient Ceiling Fan | High Air Delivery with LED Indicators | 3 Year Warranty (Earth Brown)
₹5,882Buy Now36%
OFF
LG 32 L Convection Microwave Oven (MC3286BRUM, Black, 360° Motorised Rotisserie for Bar-be-queing, 301 Auto Cook Menu, Stainless steel cavity, Indian Cuisine, Tandoor Se, Steam Clean & Diet Fry)
₹19,340Buy Now19%
OFF
4/5
Finance ministry suggestions
Another restriction on the fund proposed by the finance ministry is that it be used only after the annual budgetary grant given to the armed forces has been exhausted. Further, the ministry has proposed that in case the money in the non-lapsable fund is not used for three years, it be sent back to the Consolidated Fund of India.
5/5
Married Accommodation Project
The non-lapsable fund would be used to procure defence equipment for the armed forces under the Make in India initiative and for certain works like the creation of family accommodation for personnel under the Married Accommodation Project.