Tag: spending

  • Spurred border tensions: India’s 2022 military spending rose by 6%

    Spurred border tensions: India’s 2022 military spending rose by 6%

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    New York: Spurred by tensions along its borders, India’s defence spending rose by nearly six per cent to $81.4 billion last year, ranking it fourth in military expenditures, according to an analysis by SIPRI, the premier think-tank tracking military spending.

    The increase in India’s spending was attributed to “the effects of its border tensions with China and Pakistan” by the Stockholm Peace Research Institute better known by its initials, SIPRI, in the latest edition of its Trends in World Military Expenditure report released this week.

    New Delhi’s “expenditure on capital outlays, which funds equipment upgrades for the armed forces and to the military infrastructure along its disputed border with China, amounted to 23 per cent of total military spending in 2022,” it said.

    MS Education Academy

    China, the second highest military spender, is estimated to have spent $292 billion last year, the report added.

    The military expenditure of Pakistan, which is facing a financial crisis, shrunk to $10.3 billion from $11.3 billion in 2021, according to SIPRI data.

    Personnel expenses like salaries and pensions “remained the largest expenditure category in the Indian military budget, accounting for around half of all military spending,” the report said.

    India’s military expenditure was $76.6 billion in 2021, according to SIPRI.

    Despite the increase, India’s ranking in military expenditures slid from third place in 2021 to fourth because Russia, which had been in fifth place that year, ramped up its spending by 9.2 per cent to $86.4 billion in a year that it invaded Ukraine to displace India, according to the report.

    With $877 billion in military spending last year, the US dwarfed all others, accounting for 39 per cent of the global military spending of $2.24 trillion, according to the report.

    China’s share of the total military spending was 13 per cent, while India’s share was 3.6 per cent, the report said.

    Saudi Arabia, with an increase of 16 per cent from the previous year to $75 billion leapfrogged from the eighth spot to the fifth spot displacing Britain, which spent $68.5 billion, according to the report.

    Another Gulf region country Qatar, increased its military spending by 27 per cent to $15.4 billion, while Kuwait showed a decrease of 11 per cent to $8.2 billion, it said.

    According to the Trends report, China’s military expenditure has increased for 28 consecutive years, “the longest uninterrupted period of spending growth made by any country in the SIPRI Military Expenditure Database”, but it was showing signs of slowing down.

    “The growth rate of 4.2 per cent in 2022 was the second lowest rate of annual growth recorded by China since 1995”, with the lowest rate in the period being 2.6 per cent in 2021, it said.

    The spending pattern follows priorities reaffirmed by the Communist Party Congress last year, “which placed a strong focus on boosting China’s arms-industrial base and promoting emerging military technologies, including military applications of artificial intelligence,” according to the report.

    Military spending calculated as a share of the GDP was 2.4 per cent for India, an estimated 1.6 per cent for China and 2.6 per cent for Pakistan.

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    #Spurred #border #tensions #Indias #military #spending #rose

    ( With inputs from www.siasat.com )

  • Global IT spending continues to decline for 5th consecutive month

    Global IT spending continues to decline for 5th consecutive month

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    New Delhi: The global IT spending will continue to slow down by 4.4 per cent to $3.25 trillion for the fifth consecutive month, as technology investments continue to show the impact of a weakening economy.

    In its new monthly forecast for worldwide IT spending growth, IDC projected overall growth this year slightly down from 4.5 per cent in the earlier forecast and represents a swing from a 6 per cent growth forecast in October 2022.

    “Since the fourth quarter of last year, we have seen clear and measurable signs of a moderate pullback in some areas of IT spending,” said Stephen Minton, vice president in IDC’s Data and Analytics research group.

    MS Education Academy

    Tech spending remains resilient compared to historical economic downturns and other types of business spending, but rising interest rates are now impacting capital spending, he added.

    After reductions to PC forecasts a month ago, IDC has now scaled back its expectations for some additional hardware categories including servers, wearable devices, and peripherals.

    Forecasts have been reduced for on-premise infrastructure investments by enterprise buyers, while cloud and service provider deployments remain more resilient overall.

    Service provider spending is still weakening from last year’s highs as the industry adjusts to slower post-Covid growth, but planned investments by cloud and hyperscale providers have broadly held up since last month.

    Strong demand for cloud services continues to drive growth despite inflationary pressures but non-cloud spending is set to decline, the report mentioned.

    “The most significant impact remains concentrated in consumer markets with consumer IT spending now forecast to decline by 2 per cent this year,” said Minton.

    This will be a second consecutive year of declining consumer tech spending, a huge change in fortunes from consumer growth of 18 per cent in 2021.

    “On the other hand, enterprise demand for cloud and digital transformation remains strong despite economic headwinds,” he added.

    Cloud infrastructure, software, and services are growing more slowly than a year ago but continue to account for a larger share of total IT spending.

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    #Global #spending #continues #decline #5th #consecutive #month

    ( With inputs from www.siasat.com )

  • JK Spending Rs 118500 Cr In 2023-24, 39 per cent for Salary, Pension

    JK Spending Rs 118500 Cr In 2023-24, 39 per cent for Salary, Pension

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    SRINAGAR: Presenting her fourth consecutive budget estimates for federally ruled Jammu and Kashmir, Finance Minister Nirmala Sitharaman said the Union territory will spend Rs 118500 crore in fiscal 2023-24. The estimates were presented in the Lok Sabha on March 13, 2014.

    Nirmala Sitharaman getty 875
    Nirmala Sitharaman

    The budget has put the funds for developmental activity slightly lesser than the estimates of the current fiscal. The capital expenditure stands at Rs 41491 crore. For fiscal 2022-23 – end on March 31, 2023, the overall developmental budget was put at Rs 41335 crore. However, the documents laid on the table put the revised estimates of the capital expenditure at Rs 31785 crore only indicating a failure in spending Rs 10,550 crore.

    The budget estimates suggest that Rs 33530 crore will go as salaries, Rs 11563 as pension to the superannuating staff and Rs 8641 were g to “other” heads that are part of the primary revenue expenditure. That means 38.86 per cent of the total budget will go to the staff that man the government. Against booking an expenditure of Rs 44718 crore in 2022-23, the government would spend Rs 46055 crore on salary and pension of its staff in 2023-24.

    JK Budget 2023-24: Read FM Nirmala Sitharaman Speech

    The other key committed expenditures include Rs 9635 crore as interest payment – almost eight per cent of the overall expenditure. For the current fiscal the interest payments are at Rs 9076 crore.

    For debt repayments – part of the capital expenditure, the budget has set aside a resource of Rs 8099 crore. For 2022-23, the target was to repay Rs 3521 crore but the administration eventually paid back Rs 5030 crore.

    Interestingly, the budget has reduced the resource allocation for power purchases during 2023-24. It stands at Rs 3040 crore. In her last budget estimates, the resource allocated for power purchase for water-abundant and energy deficit Jammu and Kashmir at Rs 5000 crore. However, the revised estimates suggest only Rs 3074 crore was spent.

    The capital expenditure of a territory – state or UT – includes all resources that go into the repayment of debts, advances and loans and the developmental activities. Off late, Jammu and Kashmir’s developmental budget comprises of two major components – the central sponsored schemes and the Prime Minister’s Development Programme (PMDP) plus certain special projects that the administration intends to implement. For 2023-24, the overall funds allocated for developmental activities are Rs 33184 crore, which includes Rs 17961 crores under PMDP and Rs 15223 crore under CSS. The Jammu and Kashmir will offer a mandatory contribution of Rs 3654 crore as its share to access CSS funds.

    In fiscal 2022-23, Nirmala Sitharaman budget had allocated Rs 37505 crore for developmental activities of which Rs 19074 crore was under PMDP and other allied projects and Rs 18431 crore of central sponsored schemes. However, the revised estimates laid on the table in Lok Sabha suggest an expenditure of only Rs 26537 crore has been booked, which is Rs 10968 crore less. Was it for the lack of resources or Jammu and Kashmir’s sudden lack of capacity to spend remains unknown.

    In the 2023-24 budget, 28 per cent (Rs 33184 crore) would go to pure developmental activities. It was supposed to be 33.2 per cent (Rs 37505 crore) as per the 2022-23 budget. However, the revised estimates suggest only Rs 26537 crore were booked for pure developmental activities, making it 24.84 per cent of the overall expenditure for the current fiscal.

    On the income side, Rs 64319 crore (32 per cent) will come from the centre as grants (UTs are not entitled to have a share in the central tax collections so the matching funds are converted into grants), Rs 13174 crore is the tentative GST collection, Rs 1800 crore is the Sales Tax, Rs 2450 crore is the anticipated excise duty and another Rs 2925 crore will come from other taxable sources. The non-tax incomes have been estimated to be Rs 13593 crore of which Rs 6000 crore is expected to be the power tariff. The budget suggested Jammu and Kashmir will have additional resource mobilisation of Rs 7800 crore in the next fiscal. It includes many items including asset monetisation.

    In fiscal 2022-23, the budget estimates had anticipated receiving 34116 crore from its own resource – tax plus non-tax. However, it ended up receiving only Rs 28012 crore. Though the all tax collections were achieved, the shortfall was in power tariff collections (got Rs 4609 instead of Rs 5000 crore) and additional resource mobilisation – it has project raising Rs 8802 crore but actually manage only Rs 2484 crore, according to revised estimates put in the budget papers. In the current fiscal, the Jammu and Kashmir government saved on power purchase – spent only Rs 3074 crore against a target of Rs 5000 crore and paid more interest (on debts) which was estimated to be Rs 7427 crore but ended up at Rs 9076 crore.

    In the current fiscal ending March 31, 2022, the budget details said the overall expenditure booked by Jammu and Kashmir was at Rs 102445 crore of which 35208 crore went to capital expenditure, asset creation and interest payments.

    Offering an idea about the overall income for funding the budget, the official budget documents suggest that 32 per cent will come as entitled central grants: 10 per cent is borrowing (debts), seven per cent is the PMDP fund; 16 per cent will be the central sponsored scheme funds; 17 per cent is Jammu and Kashmir’s own tax revenue; 11 per cent is Jammu and Kashmir’s own non-tax revenue and the balance seven per cent will be the additional resource mobilisation.

    By the end of 2021-22, the total liabilities stand at Rs 101462 crore, which is almost 52 per cent of Jamu and Kashmir’s SGDP of Rs 195118 (on 2011-12 base at current prices). The budget plans to raise loans (capital receipts) of Rs 12439 crore, which includes Rs 1505 crore of negotiated loans, Rs 10128 crore of market borrowings.

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    #Spending #cent #Salary #Pension

    ( With inputs from : kashmirlife.net )

  • Meet the ‘tough as nails’ Texan trying to keep the GOP in line on spending

    Meet the ‘tough as nails’ Texan trying to keep the GOP in line on spending

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    In short, the 80-year-old former mayor has almost no room for error. And this time, she’ll have to support any tough spending compromises her committee tries to reach from the majority. Four women lead Congress’ appropriations panels from both parties for the first time in history, but it’s Granger with the biggest challenge ahead. She says she’s ready.

    “I was a school teacher, taught for nine years — high school — then I had my first child, and two years later I had twins,” Granger said in an interview. “And so if I can get through that, believe me, I can get through writing this bill.”

    The promises Kevin McCarthy made last month to finally lock in the speakership will make Granger’s job much harder. House conservatives demanded standalone floor votes on each of the 12 spending bills, a feat the chamber hasn’t accomplished since summer 2009. Additionally, the Californian granted their calls for unlimited amendments — which will make it even more difficult to rally enough support to pass the full dozen.

    The GOP’s internal hostility over earmarks and demands to cut spending will add to Granger’s burden, as the debt limit raises the stakes in the debate to fund the government before a shutdown strikes in September.

    “The lift could get a little heavy,” said Rep. Steve Womack (R-Ark.), an appropriator who split with the panel’s top Republican in supporting the government funding package last December. But he added that Granger is “very strong, in the sense that she’s not going to be rolled by anybody. And that’s an important quality to have.”

    Granger won’t have the luxury of largely sitting out spending talks this year, as she did in 2022, and will have to work with Rep. Rosa DeLauro (D-Conn.) and Sen. Patty Murray (D-Wash.), her opposing-party counterparts atop the appropriations panels.

    DeLauro called Granger a “trailblazer” who made history even before becoming the first Republican woman to chair Congress’ spending committee. The Texas Republican was the first woman elected mayor of Fort Worth, in 1991, and then the first woman to chair the elite defense spending subpanel on Appropriations.

    Over the course of her long career, Granger once aligned with her Democratic counterparts on some social issues, supporting abortion access and Roe v. Wade until reversing her stance in 2020. She has sometimes declined to take a stance on hot-button topics, such as treatment of LGBTQ troops.

    Learning where Granger draws her personal lines will be key to striking a broader funding agreement later this year, Murray said.

    “I think all of us have a big challenge ahead of us this year, but I think the four women at the top of this committee have a commitment to themselves and to each other to do our best to get it done,” the Senate Appropriations chair said in an interview.

    Democrats learned more than a decade ago how exhausting it can be to allow the amendment free-for-all that House Republicans are embracing this year for each of their 12 funding bills.

    “It is mayhem,” Granger acknowledged, recalling what she observed in 2009 as Democrats gave up on the laborious process, halting floor action mid-debate and forcing through stricter amendment constraints well after midnight.

    She said she plans to minimize similar pandemonium by communicating early with members “on both sides of the aisle” to win buy-in for her bills well before they hit the floor.

    Indeed, Granger is clear about her plans to try to win Democratic votes where she can — hardly a given, since she voted against major spending bills when they ruled the chamber — and she’ll have some help in that department with the return of earmarks, albeit with new constraints.

    But the often-derided practice of directly aiming federal dollars toward home-state projects could rouse the ire of the House’s rebellious fiscal conservatives as Republican leaders work to fund the government this year. About a quarter of the chamber’s GOP lawmakers voted in December to pass on earmarking.

    That’s not to mention the long line of Republicans demanding spending cuts as a condition for voting to raise the debt ceiling. Rep. Chip Roy (R-Texas) and others are calling for overall funding levels to essentially fall back two years, reverting to the totals Congress passed for the fiscal year that began in the fall of 2021.

    Any proposal to reduce military funding in that process is a non-starter for Granger. “I don’t support cutting defense,” she said. “That’s the one that I’m really, really hard-core on.”

    And while she doesn’t project a hard-core image, Granger is “tough as nails,” as former Rep. Rodney Frelinghuysen (R-N.J.) described his successor atop Appropriations in an interview.

    “She has a deep respect for the history of the committee,” said Frelinghuysen, who chaired the panel until 2018. “But she’ll do her best to protect Republican interests and the new majority’s priorities.”

    Her ability to balance institutional awareness with intra-party self-protection came into full view when she beat three challengers for the Appropriations chairmanship five years ago. When the committee’s GOP top spot opened up, Granger’s seniority didn’t guarantee her the post. She ultimately won after a dramatic, monthslong drive to court a select group of her peers.

    As is typical of those leadership races, she benefited from a quiet campaign to leverage influence within the caucus. And McCarthy, himself trying to ascend the leadership ladder at the time, was seen as a key ally of Granger’s.

    Looking back, she recalls staying out of the closed-door drama. “I literally just kept my head down and kept doing our work,” she said. “I wasn’t going to spend my time trying to convince people to elect me to that position.”

    But she had boosters who wouldn’t leave her race to fate.

    Texas Republicans, the largest GOP delegation in the House, talked privately back in 2018 about a strategy for locking in McCarthy’s support despite the Californian’s close friendship with then-Rep. Tom Graves (R-Ga.), one of Granger’s opponents in the committee race. Their proposed offer to McCarthy: back Granger, and every Republican lawmaker from the Lone Star State would support your leadership ambitions.

    “There’s no doubt that, when Texas is united, our state has enormous influence here on Capitol Hill. And Kay’s chairmanship is an important part of that,” said Sen. Ted Cruz (R-Texas).

    Whether that Texas alliance with McCarthy was secured is a closely held secret. (And it technically unraveled after the 2018 election of Roy, an initial McCarthy skeptic from Texas who later came around.) All Granger acknowledged is that her race to lead the party on Appropriations helped build “relationships that are going to be extremely important as we write” government spending bills.

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    #Meet #tough #nails #Texan #GOP #line #spending
    ( With inputs from : www.politico.com )

  • Biden prepares largest Pentagon budget in history as spending cuts loom

    Biden prepares largest Pentagon budget in history as spending cuts loom

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    In December, lawmakers appropriated $858 billion in national defense funding — $45 billion more than Biden sought. That included $817 billion for the Pentagon, and billions more for nuclear weapons development through the Energy Department and other national security programs.

    At the time, it was the most the U.S. had ever spent on the Defense Department, reflecting the Pentagon’s efforts to simultaneously counter the threat from Russia, keep pace with China’s growing technological advantage, modernize aging arsenals and fight inflation.

    But the outlook for Biden’s Pentagon budget is increasingly uncertain now that Republicans have taken over the House, where a partisan fight is brewing over the nation’s debt limit. With just four months to go until the Treasury Department could run out of ways to stave off a default, Republican lawmakers have demanded deep spending cuts — including potentially defense — in exchange for raising the debt ceiling.

    Republicans have yet to rally around a specific set of conditions to raise the debt limit, but House Speaker Kevin McCarthy has voiced support for capping spending at fiscal 2022 levels. If the Pentagon is not spared from those cuts, reverting to last year’s budget levels would amount to a nearly $75 billion cut across the board — roughly 10 percent.

    There are deep divisions within the Republican Party on the issue of potential defense cuts. Many hawkish members have sought to quash any talk of reducing the Pentagon’s budget, instead looking to make cuts to non-military programs. Defense boosters are actually eyeing another increase this year of up to 5 percent to mitigate the effects of inflation and meet threats from Moscow and Beijing.

    But a small but vocal faction of budget hardliners in the GOP conference is hellbent on cutting defense spending — and even some, such as Rep. Marjorie Taylor Greene (R-Ga.), oppose continued aid to Ukraine. Those lawmakers will be hard to win over.

    The parallels between the current situation and the debate that led to automatic cuts known as sequestration 12 years ago are not lost on McCord. In 2011, Republicans had just taken over control of the House and were demanding spending cuts in exchange for raising the debt ceiling. The crisis ended in the Budget Control Act, which forced hundreds of billions of dollars in spending cuts over the next 10 years.

    This time, lawmakers will have to make tough choices about which parts of the defense budget to cut, McCord said.

    “You are going to have to face the harder question of what is it that you want to do less? Do you want to have fewer people? Do you want to have fewer ships? Fewer airplanes? Smaller pay raises? That’s where the money is in the defense budget,” he said.

    Although it’s not certain defense cuts will be part of a budget deal, McCarthy has strongly hinted the Pentagon could be on the chopping block. He told Fox News in January that the Defense Department could “be more efficient,” and even identified some potential targets that would be popular among his party:

    “Eliminate all the money spent on ‘wokeism,’” he said, referring to DoD personnel policies aimed at diversity, inclusion and climate change put into effect during the Biden administration. “Eliminate all the money [they are spending] trying to find different fuels.”

    But McCord said the amounts saved from cutting those types of programs would be miniscule.

    “I’m not aware that anybody knows the number … but you would need a super telescope,” McCord said.

    As for spending on alternative fuels, McCord said that’s already well under 1 percent of the Pentagon’s total budget.

    He chastised Republicans for what he called a “complete reversal of the last two years” of calling for bigger defense budgets.

    “It would appear to be largely the same people saying, ‘well, now it should be smaller,’” he said. “It is puzzling to me that the message we’ve gotten from Congress the last few years was in one direction, for a robust budget, and in both years they added to our request.”

    Lawmakers have consistently voted to boost defense spending on a bipartisan basis, noted defense budget expert Todd Harrison, the managing director at Metrea Strategic Insights. But he also acknowledged the role that budget hawks will play.

    “Everything is uncertain until Congress figures out how they are gonna resolve this standoff over the debt ceiling,” Harrison said. “The problem is that Biden can negotiate all he wants with McCarthy, but it’s not clear McCarthy can deliver the votes in the House.”

    The possibility of spending cuts and even defaulting on the nation’s debt adds to a dangerous environment of uncertainty at the Pentagon, McCord said.

    “If we started missing payments, there’s no free get out of jail card,” McCord said, of the possibility of default. “There is no exact playbook for this. So there is a certain extra layer of uncertainty and of course, the stakes are bigger.”

    Connor O’Brien contributed to this report.

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    ( With inputs from : www.politico.com )