Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT RATES :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: due date for vat payment :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: empanelment :: articles on VAT and GST in India
 
 
« Budget Extravaganza »
 Government should reinstate wealth tax in Budget 2017
 With demonetisation inducing tax compliance will PM Modi cut tax rates in Budget 2017?
 State plan budget utilisation in Odisha
 Maharashtra wants budget advanced to February
 Coastal economic zones may get 10-year tax exemption in next Budget
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget

US budget, Indian security
August, 05th 2011

The US budget deal was interesting in foreign policy terms at the willingness with which the US legislators and administration were willing to put the Pentagons budget to the axe.

The US defence budget was already shrinking as its wars in Iraq and Afghanistan are winding down. But on top of this natural demobilization, some $ 500 billion will be chopped over the coming decade. And, if the first phase of the debt deal collapses, an automatic guillotine will fall on the defence budget chopping off $ 1.2 million over a decade.

On one level this is a natural response to the end of the post-9/11 wars. The US demobilizes savagely after its wars are fought. On another it is a natural response to the enormous debt levels the US has run up the public debt of America passed an amount equal to the size of its GDP this week. This is the stuff of Italy or Belgium.

But it also represents the dramatic dilution of a Republican and Democratic consensus on maintaining high levels of defence expenditure post-9/11 is unraveling. Most striking has been the willingness of many Republicans, especially the populist Tea Party movement, to countenance if not support such a change.

Between 2001 and 2009 the Pentagon budget expanded 70 per cent, a virtually wartime state of affairs. With no terrorist attacks on US soil since 2001 and Osama Bin Laden dead, the former sense of peril has clearly dissipated. China remains a source of concern to theoreticians.

Until now the Republicans had seen an ever-higher defence budget as being part of its policy bedrock. But fiscal conservatives and Tea Party isolationists have cracked this.

So what does this matter to India?

A lot, depending on how the cuts are dispensed through the sprawling US military system. Consider the ways:

Even before the budget deal, the US was scaling back its navy. Over the next few decades it will go from being a 300-ship fleet to about half that. One of the areas it will pull back will be the Indian Ocean, especially the southern half. Much of Indias trade and its maritime security interests lie in that area.

The US is reconfiguring its military position in Afghanistan. It may not be a withdrawal, but what will be left will be a rump of what was once there. Afghanistan wont be about nation-building, it will be about seeing how little one has to concede to the Taliban to get them off your back.

Attached to that will be Pakistan and the degree of aid they will receive from the US. The amount of money doesnt matter too much as much as the fact it buttresses the Pakistani military, making that country even more messed up than it already is.

And then there is China. Obviously the greatest beneficiary of a US budgetary onslaught on its military will be the only country with the resources and desire to fill at least the gap in Asia. China is cautious, but even its appetite could grow as it faces zero pushback. The USs present intention, say US officials, is to maintain supremacy over the Chinese Navy even off Chinas coastal. But it will have to roll up a lot of military ops elsewhere to do so.

India, not helped by its visionless Ministry of Defence, needs to be looking much more closely on how the all but inevitable shrinkage of the USs military profile in the world will effect is free-riding propensities even in its own environment. The US does a lot of the policing and so on that benefits India. It should also be giving some thought about how the USs retreat may embolden China much more than the latters actual power may entail it, and the dangers that may pose.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions