Defence Services: Financial Analysis and Resource Mobilisation

The subject of defence expenditure has been an interesting area since the days of Adam Smith. Adam Smith justified the expenses of defence as a first duty of the government and legitimized the revenue raising methods. Although defence expenditure constitutes an important part of public expenditure there are not many studies analyzing it in India from economic point of view. This book would hopefully be a welcome addition to the rather meager literature in this vital area of public economics. An attempt is made here to redefine the approach to defence expenditure and defence budgets. The book gives theoretical model of defence budget determination for India. It spells out the role of internal, external and economic factors in it. In the redefinition of defence expenditure it incorporates dual purpose technology areas like nuclear, space, electronics etc., paramilitary and other supportive expenditures for a more realistic analysis. With this view the book analyses twenty five years of post-Bangladesh war period defence budgets. The book discusses economic capability factor and defence industrial base in India. It throws light on defence and development issues in India. It analyses defence production policy and role of private sector in defence production in the changed and liberalized Indian economy. The book presents service-wise financial analysis for clear understanding of the subject. It also provides comparative picture of defence spending with China and Pakistan. The book gives several empirical findings and underlines the need for changing approaches towards this public expenditure.