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Defence spending up at early-90s level

Tara Shankar Sahay in New Delhi

ECONOMIC SURVEY

Defence expenditure has fallen from 2.7 per cent of GDP in 1990-91 to 2.2 per cent of the GDP in 1996-97, the government's Economic Survey highlighted on Friday.

"Given the heightened threat perception after Kargil, this has now risen back to the level of the beginning of the 90s," it pointed out.

It said if the increased demand on the equipment budget of the defence services is to be met without raising the ratio further, 'there is need for a deep and comprehensive introduction of modern management systems'..

It said this must cover the defence production units, procurement systems, supply chain management, logistics and inventory.

Economic Survey 2000-2001
Budget 2001
Money

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