Principle versus practice

Ex-servicemen feel let down on one rank, one pension

Inder Malhotra

Ex-servicemen return their medals in protest in Delhi. A Tribune file photograph

ON Monday when Finance Minister P. Chidambaram, while presenting his interim budget in Parliament announced that the "government has decided in principle" to accept the long-standing demand of ex-servicemen for one rank, one pension (OROP), the loudest cheers came from Defence Minister A. K. Antony, sitting next to him. Normally, this declaration would have been sensational news. But Mr Chidambaram's thunder was stolen because it was widely known that a delegation of ex-servicemen had met Congress vice-president Rahul Gandhi and he had promised them that the wishes of the retired defenders of the country's freedom and frontiers would be respected.

However, neither Mr. Gandhi - who welcomed the announcement as "historic" -- nor Mr Chidambaram explained why the Congress-led United Progressive Alliance government had resolutely refused to meet the legitimate demand of the retired officers and other ranks of the three armed forces for full five years. Whenever, during this period, I raised the issue with the bosses of the ministries of defence and finance, the off-the-record answer I got was: "The demand is just but the expenditure on it will be unbearable".

No wonder that ex-servicemen agitated vigorously, held protest rallies and returned their gallantry medals to their Supreme Commander, the President, but to no avail. What has happened then to persuade Mr Gandhi to take sudden interest in the welfare of retired soldiers, sailors and airmen and the government's change of mind almost overnight? The clear answer is: the general election barely two months away which the Congress party looks like losing, judging from all public opinion polls so far.

After all 14 lakh serving officers and men and 25 lakh ex-servicemen by themselves constitute a fairly large vote bank, and if you add members of their families, the number of voters soars as high as 20 million. Alas, that is precisely where the rub lies. Ex-servicemen who were initially happy with the budget speech were soon disappointed and irate. They felt let down because they discovered that the principle is one thing and its practice quite another. For the Finance Minister has provided only Rs 500 crore for equalising the pensions of all retirees of the same rank - and that, too, only prospectively - while the real requirement is at least Rs 2,500 crore a year. Mr. Chidambaram's promise to provide more money, if required, means nothing. The government's coffers don't have enough cash. Printing more currency notes would only add to the already high inflation.

Incidentally, the BJP is claiming that the Congress was forced to face the problem of OROP only because at a massive rally at Rewari in Haryana, where the former Army Chief, Gen V. K. Singh, was also present, the saffron party's prime ministerial nominee, Narendra Modi, had committed himself to equalising the pensions of all retirees of the same rank, irrespective of whether they retired before 2006 or after that date. Assuming that Mr Modi does become the next Prime Minister, what will he do when the civilian retired personnel come forward with the same demand? For, to meet it would need a mind-boggling amount.

The other big announcement about national defence that Mr Chidambaram made — a 10 per cent increase in the defence budget - is also a major disappointment. The so-called increase is not enough even to cover inflation. Given the decline in the rupee's external value, the defence budget for the coming financial year is indeed lower than last year's. It is $36.2 billion for 2014-15 as against $37.5 in 2013-14. The tragedy is that even the notional 10 per cent increase has gone largely to the revenue budget that meets the bills for salaries and expenditure on oil and petroleum products and other supplies for current consumption. The capital budget for modernisation and acquisition of new weapon systems - unfortunately India has to import 70 per cent of all the military hardware it needs — has actually gone down considerably.

This cannot but damage or delay some of the major projects for increasing India's military power that have already been held up for long. For instance, only recently did the government formally launch the project of raising a mountain Strike Corps of 50,000 men in the North-east to improve our defence against China at a cost of Rs. 64,000 crore over the next seven years. It would be a pleasant surprise if the project is completed on time and within the allocation made for it.

Similarly, the Air Force, with a rapid reduction in the number of its combat squadrons, is anxiously waiting for the 126 medium-range multi-role combat aircraft, Rafael, from France at the cost of $20 billion. All negotiations for this deal were completed long ago. But the signing of the agreement is being delayed again and again, presumably because this would require that the first instalment of payment be made to the manufacturers.

It is imperative that we bridge, or at least narrow, the great and growing gap between China's military power and ours. But that is proving to be impossible. Last year China's stated defence budget was thrice ours. Its domestic production of weapons and equipment also far exceeds ours. On March 4 at a meeting of its version of Parliament the Chinese government will present its defence budget. It is well known that the People's Liberation Army - now integrated rather than divided into five autonomous regions - has demanded a big hike in its allocation, especially in view of growing tensions between China and Japan because of their dispute over the Senkaku/Diayo island in the East China Sea. It is no secret that President Xi Jinping has agreed to do so. According to The New York Times, the Chinese defence budget will be as high as $148 billion, second only to that of the United States ($600 billion which is less than last year's) and more than the defence budgets of Russia, Germany and Britain put together.

The challenge before us is stark because our other adversary, Pakistan, is China's all-weather friend and receives ample military and nuclear assistance from our northern neighbour that has also established a presence in the Pakistan-held Kashmir. Are we adequately prepared to meet this challenge?

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