NEW DELHI: The Navy has achieved a healthy capital equipment to revenue expenditure ratio of 60:40, an analysis of the budget documents reveals. It has received 17.5 per cent of the total defence budget — a marginal improvement over this fiscal year's 17.3 per cent.

Overall, the defence budget was unable to achieve the intended 50:50 ratio between these two major account heads mainly because of the heavy outgo on the revenue account by the Army.

The Navy will get Rs.10,240 crore for purchasing capital equipment and another Rs.6,600 crore on the revenue account, a large chunk of it for paying wages and salaries to its civilian and uniformed personnel.

The Navy's performance in spending this year's allocation for purchasing defence equipment was uneven but in the end it managed to spend nearly the entire amount. For instance, it was allocated Rs.1,172 crore for purchasing aircraft but spent only Rs.451 crore. On the other hand, it was given Rs.5,578 crore for fleet expansion. Not only was this amount utilised but also an extra expenditure of about Rs.700 crore was made. Thus in the end, the Navy spent the entire budget for defence equipment.

With the money allocated for the next fiscal, it will make part payments for aircraft carrier Admiral Gorshkov, its complement of MiG-29 fighters and helicopters, three Talwar class destroyers, Scorpene submarines, refurbishment of maritime reconnaissance aircraft besides purchase of eight more MRA planes.

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