NEW DELHI: The Army will have over Rs2500 crore available in 1992-93 for modernization. This excludes the amount of Rs 1291.61 crore listed as capital outlay for the next financial year.
This has been made possible thanks t0 the various measures taken by the army to “tighten the slack according to top sources. While nearly Rs 600 crore are expected to be conserved by cutting down on inventories about Rs 1300 crore will be generated by the sale of old serviceable equipment ammunition and scrap this year. Another Rs 500 crore is likely to be conserved from the director general ordinance factories (DGOF) allocations if the recommendations made by the army headquarters for cost-effectiveness are implemented by the ministry
All location of Rs 8937.23 crore for revenue and Rs 1291.61 crore for capital expenditure for 199293 is not the actuals. It is Rs 9501.70 crore the sum of the revenue and capital expenditures and the receipts and recoveries. This discrepancy of nearly Rs 720 crore between the amount listed in the budget estimates for 1992-93 and the actuals can be explained.as under fictitious heads for instance the amounts listed under the sub leads of research and development inspections and the National Cadet Comps no longer form part of the Amy revenue expenditure as they have a separate budget. This hidden amount is with the ministry for the modernization of the Army according to sources.
Moreover the dividing line between the revenue and capital budget itself is thin. Any item on which more than Rs 2 lakhs is spent and has a life of more than seven years comes under capital budget. With most spares needed for maintenance now costing more the Army headquarters has taken “up a case with the ministry to raise this amount so that no drawls are made out of the capital outlay for maintenance purposes.
The maintenance budget which is the revenue allocation of Rs 8937.23 crore has an inbuilt system of capital asset generation on modernization While 40% of the allocation of Rs 3486.23 crore goes towards the pay and allowances of the 1.2 million-strong standing Amy Rs 3188.89 crore has been allocated under the sub-head stores. Out of which Rs 1700 crore has been given to the DGOF the remaining going for the orders placed with the nine public sector undertakings and the ordnance comps for spares. Although the DGOE has been giving less stores for more money based on a faulty pricing policy most such form capital assists. For example the T-T2MIL tank factory at Avadi is giving fewer tanks than initially planned each year.
Interestingly the capital outlay of RS 1291.61 crore for the next Financial year is even less than the past contractual payments of Rs 2000 crore for 1992-93. Sources observe that the exercise to identify the bare essential past payments both in terms of rupees and foreign exchange is currently going on in the ministry. There therefore enough scope for further postponement of payments. New calls on deferred or delayed payments and barter will be explored. Moreover in the case of identified prioritization of equipment for the Lee services huge supplementary grants from the Consolidated Fund of India are also not ruled out according to sources.
For the first time the Army undertook an elaborate exercise of reviewing its existing invent which are the equipment holdings with various formations listed in its war establishment tables (WET).
Article extracted from this publication >> March 13, 1992
