Budget shortfall worries Defence Services

  1. The shortfall in Defence allocation in the interim Budget 2019-20, especially in its capital allocation, has left the Services worried as it threatens to delay the capability enrichment and modernisation under way.
  2. The shortfall is so significant that, for the Navy and the Air Force, the capital allocation does not even meet the committed liabilities (that is, payments for deals already contracted).
  3. The Army, meanwhile, is looking at a shortfall in its non-salary revenue expenditure.As it has a huge revenue burden compared to the other two Services, and a significant part of it goes for salaries.
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