Union Finance Minister Nirmala Sitharaman launched a fierce attack on the Congress in the Rajya Sabha, accusing the party of neglecting India’s defence needs during its tenure.
She argued that the previous governments consistently failed to allocate sufficient funds for the military, leaving soldiers underprepared in critical situations.
FM Sitharaman reminded the House that former Defence Minister AK Antony had once admitted in Parliament that he could not purchase essential defence equipment due to a lack of financial resources.
She said this statement reflected the Congress-led government’s broader approach, which treated defence as a low priority and allowed glaring gaps to develop in military preparedness.
Finance Minister Nirmala Sitharaman pointed out that soldiers deployed in high-altitude regions lacked basic gear such as snow boots during the Congress era.
She emphasised that the Army did not even possess adequate ammunition for sustained combat.
Citing a 2013 CAG report, she noted that the Army had only ten days’ worth of ammunition for several categories, far below the levels required to fight an intense war.
Sitharaman contrasted this with the PM Modi government’s approach, asserting that defence spending increased significantly after Prime Minister Narendra Modi took office.
She said the government immediately ordered more ammunition, replaced expired stocks, and ensured soldiers received bulletproof vests without delays.
FM Sitharaman stressed that the government’s commitment extended beyond short-term fixes, with a strong emphasis on boosting indigenous production of military hardware.
Sharp Attack in Parliament
FM Sitharaman noted that India, once heavily reliant on defence imports, now exports around ₹25,000 crore worth of military equipment.
Sitharaman said this shift demonstrated the effectiveness of policies prioritising self-reliance and strengthening defence forces through domestic manufacturing.
Responding during the debate on the ‘Health Security se National Security Cess Bill, 2025’, FM Sitharaman said the proposed cess would help reinforce both public health systems and national security.
She clarified that this cess would apply only to demerit goods, not essential items.
According to her, generating dedicated revenue for defence capabilities has become critical as modern warfare increasingly depends on precision weapons, autonomous technology, and space-based assets.
These advancements demand steady and capital-intensive investments.
FM Sitharaman acknowledged that health is a state subject and assured the House that revenue from the cess would be shared with states.
Sitharaman also explained that under the earlier GST structure, demerit goods attracted both GST and compensation cess, raising tax incidence to as high as 88 per cent in some cases.
With the rollout of next-generation GST, the compensation cess has been phased out, capping total taxation at 40 per cent.
Finance Minister Nirmala Sitharaman concluded by reiterating that the PM Modi government’s approach ensures stronger defence preparedness, greater self-reliance, and a stable revenue mechanism to support national security.
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