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India cuts back on MoD spending due to Covid-19 crisis

Arjun-Tank

India's federal Ministry of Finance (MoF) has tightened all expenditure, including that of the Ministry of Defence (MoD), for the first three months of Fiscal Year 2020/21 (FY 20/21) as a result of the financial and economic impact of the Covid-19 coronavirus pandemic.

In an 8 April notification the MoF stated that, "in view of the present situation arising out of Covid-19 and the consequential lockdown, it is expected that the cash position of the government may be stressed in Quarter 1 [April-June] of FY20/21".

Keeping this situation in mind, the MoF added that, "it is essential to regulate government expenditure and to fix the quarterly expenditure plan of specific ministries and departments" including that of the MoD.