GoI’s step to amend the terms of reference of the 15th Finance Commission (FC) so as to address “serious concerns regarding the allocation of adequate, secure and non-lapsable funds for defence and internal security of India” is unprecedented. It has opened doors to previously unchartered territory — the raising of funds from other sources for India’s defence.
Until now, things were fairly straightforward. The Centre was responsible for India’s defence and would, come what may, meet the necessary needs. It was never enough. There was continuous haggling as financial stress increased with growing demands of acquiring state-of-the-art weapons and a bulging pension bill. Read More…
