Union Budget 2012-13: Rs 1,93,408 crore defence budget still can't deter China and Pakistan

NEW DELHI: Modernization of the over 13-lakh strong armed forces will continue in a steady albeit sluggish manner, with the defence outlay being hiked to Rs 1,93,408 crore (around $39 billion) to cater for some major fighter, aircraft, helicopter and howitzer deals to be inked in the coming fiscal.

But two major worries remain.

One, India's budgeted defence expenditure still remains just 1.9% of the projected GDP for 2012-13, much less than the 3% being demanded by the armed forces and strategic experts for several years to effectively deter both China and Pakistan.

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An assertive China, for instance, recently hiked its official defence budget to over $100 billion.

Two, the revenue expenditure (day-to-day costs and salaries) pegged at Rs 1,13,829 crore for the coming fiscal continues to far outstrip the capital one for new weapons, sensors and platforms at Rs 79,579 crore.

There is simply no indication the much-touted aim to "transform'' the military into a lean, mean fighting machine is anywhere on the horizon.