Question : DEFENCE FINANCE POLICY



(a) whether the Chief of the Army Staff has urged the Government for radical changes in the Defence Finance Policy;

(b) if so, the details thereof;

(c) whether any Financial Management Strategy has been prepared by the Defence forces and sent to the Union Government for approval; and

(d) if so, the details thereof and the reaction of the Government thereon?

Answer given by the minister

MINISTER OF DEFENCE (SHRI GEORGE FERNANDES)


(a) & (b): Improving the Defence Finance System is a continuous endeavour of Ministry of Defence and Service HQrs.

As regards financing defence, Government have in the Ninth Plan period made substantial provisions for various categories of defence requirements. Defence Allocations have been further enhanced from Rs. 48504 crores in RE 1999-2000 to Rs. 58587 crores in BE 2000- 2001 i.e. an increase of 21%.

(c) & (d): No Financial Management Strategy document prepared by the Defence Forces has been sent to the Union Government for approval.