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Noting that technology is changing very fast and so is the geo-political scenario, Parliamentary Standing Committee on Defence has said that any procurement procedure should have a timeline for delivery and the process should have transparency and accountability.
In its report presented in Parliament on Wednesday on the demands for grants of Defence Ministry for 2026-27, the Committee noted that the capital budget of defence services is bifurcated into capital acquisition and other than capital acquisition with outlays of Rs 1,84,931.92 crore and Rs 34,374.55 crore respectively in BE 2026-27. The Committee was satisfied to note that the total capital outlay of Defence services registered an increase of 21.84% as compared to BE 2025-26. The capital acquisition expenditure, also known as the modernization budget of the Defence Services, reflected an increase of 18.10 percent in comparison with RE 2025-26. The Committee desired that such increase in allocations be maintained in future also so as to maintain upward trajectory of Capital budget allocation for the Defence Services. The Committee noted that in 2026-27 ,out of the amount of Rs 2,19,306.47 crore allocated for Capital Outlay on Defence Service for the Services/Organisations covered under Defence Services Estimates, Rs 1,84,931.92 crore was allocated for Capital Acquisition /Modernisation Head of the three Services viz. Army, Navy (including Joint Staff) and Air Force. The Committee also found that the allocation for Modernisation Head of the Services had seen an increase of Rs 36,209.12 crore from BE 2025-26. Keeping in view the need for maintaining credible war deterrence at all times, the Committee recommended that enhanced budgetary allocation, if sought, under Capital Head for modernization purpose at Revised Estimates 2025- 26 may be given to ensure state-of- the-art weapons/equipment and logistical support for the Armed Forces. The Committee had been informed that keeping in mind the diverse need of all the three services, Headquarters Integrated Defence Staff (HQ IDS) had been made as a single point contact to ensure a joint planning for all the three services which has developed Integrated Capability Development System (ICDS) which carries out the defence planning through an interactive process. The Committee was further informed that 10 year Integrated Capability Development Plan (ICDP) is the foundation of defence planning which will comprise two Five Year Defence Acquisition plan (DCAP) and Two-Year Annual Acquisition Plan (AAP). The Committee felt that planning under ICDP should be in tandem with changing nature of modern warfare which demands more focus on automation, latest advanced technologies, quick response, prompt coordination, velocity and application of Artificial Intelligence (AI). The Committee lauded the initiatives taken to attract the private enterprisers in the defence sector. It recommended that the Ministry should try to encourage indigenous private enterprises and to enhance capital procurement and augment design and research assistance for indigenous players in order to create vibrant indigenous privatise defence manufacturing hub which is also the essence of the Atmanirbhar Bharat programme. The Committee acclaimed the progress being made towards promotion of Make in India and making India Atmanirbhar in defence sector. The Committee was apprised about disability pension and bringing disability pension for the Armed Forces Personnel under the ambit of Income Tax which was hitherto non-taxable. "The representatives of the Ministry took note of this sensitive matter. Although, the matter of taxation comes under jurisdiction of Ministry of Finance, however, the Committee would like to recommend that since the Ministry of Defence is one of the stake-holder in the matter, the ministry may take this important issues up to an appropriate level to examine the proposal of bringing disability pension under the ambit of Income Tax," the report said. (ANI)
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