India’s Defence Ministry is exploring alternative sources of funding . Ministry’s officials apprised the 15th Finance Commission about their plan, during a meeting held here in New Delhi today.
According to a press release 15th Finance Commission, headed by N.K. Singh, held a meeting with the Ministry of Defence led by the Defence Minister Shri Rajnath Singh. During the meeting, MoD gave its Fund Projections for the period of five years i.e.2020-2025. This is also the award period of the 15th Finance Commission. The Ministry informed the Commission about the allocated budget for MoD in comparison to the projections made. MoD officials apprised the Commission that it was exploring a number of alternative sources of funding.
” The Finance Commission assured MoD that it would take into consideration all the suggestions made that would help to increase the overall capital space of the Ministry, bring about predictability and help the Ministry in its defence preparedness”, said the release.
It may be recalled that a notification was brought out by the Ministry of Finance on 29 July, 2019 following an Order made by the President of India. By this Order, the Terms of Reference (ToR) of the 15th Finance Commission was amended and Paragraph 9A was inserted in the ToR namely: “The Commission shall also examine whether a separate mechanism for funding of defence and internal security ought to be set up, and if so, how such a mechanism could be operationalised.”
It is in follow-up of this revised Term of Refrence that today’s meeting was held. Meeting was attended by Chief of Naval Staff Admiral Karambir Singh, Defence Secretary Dr Ajay Kumar, Secretary (Defence Production) Subhash Chandra, Secretary (Ex-Serviceman Welfare) Smt Sanjeevanee Kutty, Secretary, Department of Defence R&D and Chairman, DRDO Dr. G Satheesh Reddy, Secretary (Defence Finance) Smt Gargi Kaul, Vice Chief of Army Staff , Lt Gen Devraj Anbu, Vice Chief of Air Staff Air Marshal RKS Bhadauria and Director General, Coast Guard Krishnaswamy Natarajan and other senior officials of Defence Ministry.
