New Delhi, Aug 7 (PTI) A parliamentary panel has recommended that budgetary allocation under the capital head for defence should be enhanced in view of the current geopolitical situation and the need to maintain “credible war deterrence at all times”.
The report, “Action Taken by the Government on the Observations/ Recommendations contained in the Twenty-First Report of Standing Committee on Defence (18th Lok Sabha) on Demands for Grants of the Ministry of Defence for the year 2026-27 on ‘Capital Outlay on Defence Services, Defence Planning, Procurement Policy and Defence Pensions (Demand Nos. 21 and 22)'”, by the Parliamentary Standing Committee on Defence was presented in Parliament on Friday.
The panel in its report has also said that it “unanimously agrees with the Ministry (of Defence) that the matter of exemption of income tax on disability pension granted to defence forces personnel comes under the purview of the finance ministry.
The Committee, however, expresses its “concern” over the amendments involving exemption of income tax on disability pension granted to armed forces personnel.
“The Committee at this stage would like to reiterate their earlier recommendation that the Ministry of Defence being a stake holder in the case take up this matter with the Ministry of Finance at the appropriate level so that financial concerns of the ex-servicemen, particularly the disabled personnel are duly addressed in an upright manner,” it said.
The panel said the modernisation of defence forces is funded through the capital segment of the defence budget. Modernisation involves acquisition of new state-of-the-art platforms, technologies and weapon systems to upgrade and augment defence capabilities.
The Committee said it feels this is a continuous process based on threat perception, operational challenges and technological changes to keep the armed forces in a state of readiness to meet the “entire spectrum of security challenges”.
“Keeping in view the current geopolitical situations and the need for maintaining credible war deterrence at all times, the Committee recommend for further enhanced budgetary allocation under capital head,” the report said.
The parliamentary panel said it is pleased to note that allocation under the capital budget has been increased significantly in BE (budget estimate) 2026-27 over the previous year and, if required, additional funds will be sought at supplementary/RE (revised estimate) stage.
“The ministry in their reply have also assured the Committee that the allocated fund would be optimally utilised towards meeting modernisation and infrastructure development work needs of the defence services.
“However, the Committee would appreciate further, if a statement on the allocation sought at RE (budget estimate) stage, if any, along with the utilisation of the allocated fund received at BE stage is furnished at the time of submitting final action taken statement by the ministry,” it said.
The panel also underlined that the defence procurement process and procedure should follow transparency and accountability in the procurement and “no compromise on this aspect needs to be ensured”.
“Though the Committee take cognisance of the fact that the requirements of each of the armed forces are very complex yet the Committee recommend that time-bound and determined efforts must be made by all the stakeholders involved in the process of procurement such as the ministry, DPSUs, the armed forces and private sector as timely procurement and delivery is vital and crucial for meeting operational needs of the defence forces and realisation of the goal of self-reliance in defence sector,” the panel added.
The Committee has also said that as the technology is changing very fast and so is the geopolitical scenario, “therefore keeping in view the high dynamism in the defence sector, any procurement and acquisition procedure needs to have a timeline for delivery, as any inordinate and long delay in procurement can result in technology and equipment becoming obsolete and redundant”. PTI KND KND KSS KSS
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