
## Demand For Grants 2017-18 Analysis Home Affairs

The Ministry of Home Affairs is responsible for matters concerning internal security, centre-state relations, central armed police forces, border management, and disaster management.  In addition, the Ministry also makes certain grants to the union territories.  This note analyses the expenditure trends and budget proposals for the Ministry of Home Affairs for 2017-18, and presents some issues in the sector. 

## Overview Of Finances1

The Ministry of Home Affairs has been allocated Rs 97,187 crore in Union Budget 2017-18.  This is an increase of 5.4% over the revised estimates in 2016-17, which was Rs 92,170 crore.  Further, this is 9.7% higher than the budget allocation of last year, which was Rs 88, 547 crore.  The budget for the Ministry of Home Affairs constitutes 4.5% of the total expenditure budget of the union government in 2017-18. Of the total budget estimates for 2017-18, (i) 80.3% expenditure is on police; (ii) 13.7% is on grants made to union territories (UTs), and (iii) 6% is on miscellaneous items such as disaster management, rehabilitation of refugees and migrants, census and Cabinet.  Table 1 shows the allocations to the main heads under the Ministry of Home Affairs in the Union Budget over the past three years. 

## Estimates (In Rs Crore) (2017-18)

% Change 
2015-16 
2016-17 
2017-18 
 
Actuals 
RE 
BE 
(BE 17- 18/RE 16-17) 
Police 
63,690 
73,328 
78,000 
6.4% 
UTs* 
11,844 
13,350 
13,357 
0.1% 
Others** 
4,489 
4,892 
5,830 
19.2% 
Total 
80,023 
92,170 
97,187 
5.4% 

Sources: Union Budget 2017-18; PRS. 

Note: *Includes grants made to administer the seven UTs;  
** Includes expenditure on disaster management, social security, rehabilitation of refugees and migrants, census, civil defence, secretariat and Cabinet. RE: Revised Estimates; BE: Budget Estimates. 

 
Police: For 2017-18, Rs 78,000 crore has been 
allocated towards police.  This is the largest expenditure item for the Ministry as it constitutes 80.3% of the ministry's total budget.  Budget estimates for police has 
increased by 6.4% from revised estimates for 
2016-17, which was Rs 73, 328 crore. Under the Constitution of India, police and public order are state subjects.  However, the central government supplements the efforts of the states to fight extremism.2  Further, the central government is responsible for the seven central armed police forces (e.g. Central Reserve Police Force, Border Security Force), border infrastructure, intelligence gathering and police training. In addition, it supports the expenditure towards the state police forces through centrally sponsored schemes for modernisation of police.   

 
Grants and loans to Union Territories: 
Around 13.7% of the Ministry's budget, i.e. Rs 13,357 crore, has been allocated for grants and loans for the administration of union territories.  This includes the five union territories without legislatures (Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep), and the two union territories with legislatures (Delhi and Puducherry).   
The 2017-18 budget estimates for grants and loans to union territories has seen a marginal increase of 0.5% from revised estimates for 2016-17, which was Rs 13,350 crore. 

 
Other items: Other miscellaneous 
expenditure items of the Ministry of Home 
Affairs have been allocated Rs 5,830 crore. This includes subjects such as disaster management, rehabilitation of refugees and migrants, and administrative matters (relating to the census, the secretariat and Cabinet). This constitutes 19.2% of the Ministry's total budget for 2017-18. 

## Analysis Of Key Areas Of Expenditure

This section discusses the trends in expenditure of the police as it constitutes 80% of the total budgetary allocation of the Ministry of Home Affairs.  This includes budgetary allocations and issues related to (i) central armed police forces; (ii) border and police infrastructure; and (iii) schemes related to modernisation of police forces. 

## Police

In 2017-18, Rs 78,000 crore has been budgeted for police expenditure.  Figure 1 details the budget estimates and actual expenditure for police over the last seven years.   
Note: Revised estimates have been used for 2016-17. 

As seen in the figure above, over the last seven years, the actual expenditure for police has been marginally higher than the budget estimates for that year. Table 2 details the allocations made to the major expenditure items over the last three years. 

% Change 
 
2015-16 
Actuals 
2016-17 
Revised 
2017-18 
Budget 
(BE 17-
18/RE 16-
17) 
44,669 
52,444 
54,985 
4.8% 
Central Armed Police Forces 
5,646 
5,112 
7,047 
37.9% 
Police and Border infrastructure Delhi Police* 
4,750 
5,620 
5,910 
5.2% 
Modernisation of police 
1,581 
2,235 
2,022 
-9.5% 
Intelligence Bureau 
1,341 
1,526 
1,577 
3.3% 
Others** 
5,348 
6,391 
6,459 
1.1% 
Total 
63,335 
73,328 
78,000 
6.4% 

under the head of 'Police Infrastructure'. ** Other items include heads such as schemes for safety of women, education and research, criminology and forensic science, Land Port Authority of India, and India Reserve Battalion. 

The major expenditure items of police include: 

 
Central armed police forces which account for 70.4% of the total budget for police.  This is a 4.8% increase from the revised estimates for 2016-17. 
 
9% of the budget is allocated towards border and police infrastructure.  This amounts to Rs 
7047 crore, which is 37.9% higher from the 2016-17 revised estimates of Rs 5112 crore. 

 
7.6% of the total budget has been allocated towards Delhi Police and 2.6% towards 
schemes related to modernisation of police.   
 
In relation to allocation for modernisation of police, note that there has been a 9.5% decrease in the 2017 -18 budget allocation as compared to the 2016-17 revised estimates.  
 
1.7% is allocated for the Intelligence Bureau which is the central intelligence agency for all matters related to internal security (such as espionage, insurgency and terrorism). 

##  Central Armed Police Forces

The Ministry of Home Affairs is responsible for seven central police forces: (i) Central Reserve Police Force (CRPF) which assists in internal security and law and order, (ii) Central Industrial Security Force (CISF) which protects vital installations (like, airports) and public sector undertakings, (iii) National Security Guards (NSG) which is a special counter-terrorism force, and (iv) four border guarding forces, Border Security Force (BSF), Indo-Tibetan Border Police (ITBP), Sashastra Seema Bal (SSB) and Assam Rifles (AR). Figure 2 highlights the allocation to each of the central armed police forces for 2017-18. 

For 2017-18, the Central Reserved Police Force has been allocated 32.5% of the total budget for central armed police forces, i.e. Rs 17,868.5 crore.  The second highest expenditure is towards the Border Security Force which has been allocated 28.4% of the total budget, i.e. Rs 15,569 crore.   

## Staffing

The central armed police forces are understaffed. As of January 2016, the total sanctioned strength of the seven central armed police forces was 9,68,233.3  Of these, the largest forces are the CRPF (3,08,862 personnel), the BSF (2,56,831) 
and CISF (1,42,250).   
However, 7% of these posts (i.e. 63,556 posts) were lying vacant.  Sashastra Seema Bal (18%), Central Industrial Security Force (10%), Indo- Tibetan Border Police (9%) and National Security Guards (8%) had relatively high vacancies. 

##  Infrastructure For Borders And Police

Table 3 details the expenditure related to border infrastructure and projects for central police organisations.   

## Infrastructure Items (In Rs Crore)

% 
2017-18 
Budget 
2016-17 
Budget 
2016-17 
Revised 
Change 
(RE 16-
17/BE 
16-17) 
2,699 
1,929 
-28.5% 
2,600 
Border Infrastructure and Management 
3,013 
2,992 
-0.7% 
4,008 
Building projects of CAPFs and CPOs 

Sources: Union Budget 2017-18; PRS. Note: This table does not include the allocations made for infrastructure of Delhi Police.  

## Border Infrastructure

Budgetary allocations are made towards various aspects related to police and security related infrastructure.  Allocations to border infrastructure include outlays for maintenance of border works and border check posts, border out posts, capital outlays for various items including erection of barbed wire fencing, construction of roads, and induction of hi-tech surveillance on the Indo- Bangladesh and Indo-Pak borders.  It also makes capital outlays for construction on India's international borders and for setting up mobile check posts in coastal areas. For 2017-18, Rs 2,600 crore has been budgeted for border infrastructure and management.  This is 37.9% higher than 2016-17 revised estimates. In 2016-17, the budget estimates for border infrastructure and management was Rs 2699 crore. This was reduced by 28.5% to Rs 1929 crore at the revised estimates stage.  The Standing Committee observed that the Ministry was unable to spend the reduced allocation at the revised estimates stage which was an indicator of underperformance.10 

## Building Projects For Central Police

This includes allocations for construction of office and residential buildings for the central armed police forces and central police organisations, and other intelligence, research and training institutes. For 2017-18, Rs 4,008 crore has been budgeted towards such building projects.  This is around 
34% higher than the revised estimates for 2016-17, which was Rs 2992 crore. However, the Standing Committee had noted that there has been an underutilisation of funds in relation to various plan schemes during the period 
2012-16.10  In particular, it highlighted the underutilisation in schemes related to infrastructure for the central armed police forces and border management.   

##  Modernisation Of Police Forces

For 2017-18, the central government has made allocations towards four schemes related to modernisation of police.  These include: (i) Modernisation of State Police Forces Scheme; (ii) the Crime and Criminal Tracking Network and Systems (CCTNS) scheme; (iii) Security related expenditure (SRE) scheme; and (iv) Special Infrastructure scheme (SIS) for Left Wing Areas. The allocations for each of these schemes over the last three years is outlined in Table 4. 

## Of Police (In Rs Crore)

|                                     | %     |
|-------------------------------------|-------|
| 2017-18                             |       |
| Budget                              |       |
| 2015-16                             |       |
| Actuals                             |       |
| 2016-17                             |       |
| Revised                             |       |
| Change                              |       |
| BE 17-                              |       |
| 18/RE                               |       |
| 16-17                               |       |
| 713                                 | 845   |
| Modernisation                       |       |
| of state police                     |       |
| Forces and                          |       |
| CCTNS                               |       |
| 869                                 | 1,390 |
| -12.1%                              |       |
| SRE and SIS                         |       |
| for LWE                             |       |
| areas                               |       |
| Total                               |       |
| 1,582                               | 2,235 |
| -9.5%                               |       |
| Sources: Union Budget 2017-18; PRS. |       |

 
Overall, the 2017-18 budget estimates for the 
schemes related to modernisation of police is Rs 2,022 crore.  This is 9.5% lesser than the revised estimates for last year, which was Rs 2,235 crore.   
 
Until 2015, there was a scheme for modernisation of police called 'National Scheme for Modernization of Police and other 
forces'.  Subsequently, the Ministry decided 
to discontinue this scheme.  The Standing Committee had stressed the importance of continuing this scheme, and asked the Ministry to reconsider. 
 
In 2016, this scheme was revived by merging several existing schemes (such as the SRE and CCTNS) into it.  

## Modernisation Of State Police Forces (Mspf) Scheme

The major items covered under the MSPF scheme include: mobility, weapons, equipment, training infrastructure, computerization and forensic science and infrastructure development. In 2016-17, Rs 522 crore was released to the 29 states under the MSPF scheme.4  Details related to state funding are provided in Table 5. 

Table 5: Allocation and release of funds to states under the MSPF scheme (in Rs crore) 
 
2013-14 
2014-15 
2015-16 
2016-17 
Allocated 
1,610 
1,375 
520 
522 
Released 
1,333 
1,324 
488 
NA 
% of funds not released 
17.2% 
3.7% 
6.1% 
NA 

Sources: Modernisation of Police force', Lok Sabha Unstarred Question 861, Ministry of Home Affairs, February 7, 2017; 
PRS.5 

 
Mobility of state police forces: State police 
forces suffer from a shortage of vehicles.  As a result, this has reduced their response time and efficiency.  Audits reports of the Comptroller and Auditor General (CAG) had observed that several of the new vehicles procured had replaced old ones, or had been diverted towards escorting of VIPs.  Some vehicles remained unused due to a shortage of drivers.6  As of January 2015, state forces had a total of 1,63,946 vehicles.  This was 30.5% lesser than the required stock of vehicles (2,35,339 vehicles).7 
 
Weaponry: The number of sophisticated weapons procured by states have not been enough to meet their requirements.6  As a result, they continue to depend on outdated weaponry.  An audit of the Rajasthan police force (2009-14) concluded that there was a shortage of 75% in the availability of modern 
weapons against the state's own specified 
requirements.8  Further, when weapons were 
procured, a large proportion of them (59%) were lying idle because they had not been distributed to the police stations.  Similar audits in West Bengal and Gujarat found shortages in weaponry.9   

## Special Infrastructure Scheme For Left Wing Extremism

For 2017-18, the budgetary allocations for schemes related to security related expenditure and Left Wing Extremism is Rs 1,222 crore.  This is 12.1% lesser than the revised estimates for 2016-17, which was Rs 1,390 crore. Last year, the ministry had noted that the share of the states in central taxes had increased from 32% to 42%, as per the 14th Finance Commission's recommendations.  Therefore, it would delink the expenditure item of Special Infrastructure scheme (SIS) in Left Wing Extremism (LWE) affected states from central assistance.  However, the Standing Committee had recommended that these schemes were vital for LWE affected and other troubled regions and must be included into an umbrella scheme.10  The Committee felt that the increase in the states' share of the divisible pool of central taxes was not a justification for delinking the SIS from central assistance.  Consequently, this scheme has been revived. 

## Other Expenditure Items Disaster Management

The three components of disaster management are: (i) preventing and mitigating risks associated with disasters, (ii) disaster preparedness and response, and (iii) recovery and rehabilitation. The Ministry of Home Affairs is responsible for financial assistance in the aftermath of any disaster. In this regard, the National Disaster Response Fund has been created at the national level.  Further, the Ministry gives grants to state governments and to certain union territories like Andaman and Nicobar Islands, and Lakshadweep, in relation to disaster management. Overall, the 2017-18 budget estimates for disaster management is Rs 1,677 crore.  There has been an 11% increase from the revised estimates of 2016- 17, which amounted to Rs 1,510 crore.  Figure 3 details the expenditure related to disaster management over the last seven years.   
 
Sources: Union Budget 2011-12 to 2017-18; PRS. Notes: Revised estimates for 2016-17; BE for 2017-18. 

Some expenditure items related to disaster management are detailed below: 

##  Central Funds On Disaster Management National Disaster Response Fund

This fund can only be used for providing immediate relief to the victims of cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst and pest attack.  It is not for disaster preparedness, mitigation and restoration work, which must be met from the plan funds of the state.  For 2017-18, a budgetary allocation of Rs 650 crore has been made towards 

## 

the fund.  This is a marginal increase of 0.5% from 2016-17 revised estimates which was Rs 647 crore.   

## National Disaster Mitigation Fund

This fund is meant to finance efforts toward disaster risk reduction.  However, the National Disaster Mitigation Fund is not operational as yet. The CAG has recommended that these funds must be operationalised.11 

## National Cyclone Risk Mitigation Project

This project was launched by the Ministry of Home Affairs for the purpose of: (i) upgrading cyclone forecasting, tracking and warning systems, (ii) building capacity in multi-hazard risk management, and (iii) constructing cyclone shelters and embankments. For 2017-18, a budgetary allocation of Rs 4.25 crore has been made to this project.  This is a 1.8% reduction from the revised estimates for 2016-17, which was Rs 4.3 crore.  Funds for the National Cyclone Risk Mitigation Project (NCRMP) have been drastically reduced in the last few years.  In 2015-16, the actual expenditure on this project was Rs 159 crore.  This was 97% more than the budget estimates for 2017-18. The Ministry also implements a project called the 'National Cyclone Risk Mitigation Project with World Bank Assistance'.  This project seeks to give grants- in- aid to state governments for the implementation of NCRMP with World Bank assistance to reduce the vulnerability of coastal states which are cyclone prone. For 2017-18, a budgetary allocation of Rs 690 crore has been made to this project.  It has increased by 9.5% from the 2016-17 revised estimates, which was Rs 630 crore.   

##  National Disaster Response Force (Ndrf)

The NDRF is a specialised force that is responsible for disaster response and relief.  For 2017-18, the budget estimates for the NDRF is Rs 650 crore. This is marginally higher than the revised estimates of Rs 647 crore, for 2016-17. 

                                                           

## Delays In Development Of Battalions

In the past, there has been a reduction of allocated funds at the stage of revised expenditure due to delays in development of infrastructure of various battalions of the NDRF.  In this regard, the Standing Committee had recommended that procedural complexities in relation to infrastructure development of the NDRF battalions should be minimised.  This view was seconded by the CAG.12   

## Lack Of Clarity Over Supervision Of Ndrf

The Disaster Management Act, 2005 assigns the general superintendence, direction and control of the NDRF to the NDMA.13  However, currently the Ministry of Home Affairs is responsible for its deployment and other administrative matters.14   

##  National Disaster Management Authority (Ndma) Role Of The Ndma In Allocation Of Funds

The NDMA is a planning and policy making body created under the Disaster Management Act, 2005. As per the 2005 Act, the NDMA is mandated to make recommendations for the provision of funds for mitigation and relief and grant of loans to persons affected by disasters.  However, the Standing Committee has observed that the NDMA has failed to fulfil its mandate of recommending the provision of funds towards disaster management.15 It has recommended that the NDMA must take a more proactive role in this regard. 

## Slow Execution Of Projects

As on February 2014, of the 10 projects which were recommended to be taken up by the NDMA during the 11th Five Year Plan (2007-2012), four were yet to be approved.  Of the remaining five projects which were approved, one project, i.e. micro-zonation of major cities, has been completed. The remaining four are under various stages of implementation.  For instance, the National Earthquake Mitigation Project is still in its preparatory stage though five years have lapsed since its conceptualisation.  Therefore, it has been recommended that the functioning of the NDMA must be monitored in a better fashion by the administrative ministry.15 
                                                                                                                                                                                     
Auditor General of India, April 23, 2013, http://www.saiindia.gov.in/english/index.html. 12 "197th Report: Demands for Grants (2016-17), Ministry of Home Affairs, May 3, 2016. 13 Section 45 of the Disaster Management Act, 2005. 14 "Report of the Comptroller and Auditor General of India on Performance Audit of Disaster Preparedness in India, 2013", Comptroller and Auditor General of India, April 23, 2013, http://www.saiindia.gov.in/english/index.html. 15 "178th Report: Disaster Management in the Country", Department Related Standing Committee on Home Affairs, February 19, 2014. DISCLAIMER: This document is being furnished to you for your information.  You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research ("PRS").  The opinions expressed herein are entirely those of the author(s).  PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete.  PRS is an independent, not-for-profit group.  This document has been prepared without regard to the objectives or opinions of those who may receive it. 

% Change RE 
2016-17 v RE 
% Change BE 
2016-17 v BE 
% Change RE 
2016-17 v BE 
Major Head 
2016-17 
Budget 
2016-17 
Revised 
2017-18 
Budget 
2016-17 
2017-18 
2017-18 
Police 
70,725 
73,328 
3.7% 
78,000 
10.3% 
6.4% 
Miscellaneous* 
4,631 
4,846 
4.6% 
5,100 
10.1% 
5.2% 
UTs without legislature 
10,623 
11,107 
4.5% 
11,116 
4.6% 
0.1% 
Grants & Loans to Delhi & Puducherry 
2,148 
2,243 
4.4% 
2,241 
4.3% 
-0.1% 
Cabinet 
420 
646 
53.8% 
730 
73.8% 
13% 
Total 
88,547 
92,170 
4.1% 
97,187 
9.8% 
5.4% 

Sources: Union Budget 2017-18; PRS. Note: *Includes expenditure on disaster management, social security, rehabilitation of refugees, migrants, census, civil defence, secretariat. 

Major Head 
2011-12 
2012-13 
2013-14 
2014-15 
2015-16 
2016-17 
2017-18 
Central Armed Police Forces 
27,394 
30,962 
35,263 
39,988 
44,669.1  
52,443.9 
54,985.1 
Delhi Police 
3,387 
3,832 
4,211 
4,631 
4,750 
5,620 
5,910 
Modernisation of police* 
800 
300 
1,338 
1,981 
1,581.4 
2,235 
2,022 
Border management  
992 
945 
1,510 
872.4 
1,907 
1,928.5 
2,600 
Border Area Development Program  
- 
  
- 
800 
990 
990 
1,100 
Intelligence Bureau 
874 
983 
1,050 
1,123 
1,341 
1,526 
1,577 
Others 
6,140 
6,982 
6,482 
6,860 
5,348 
6,391 
6,459 
Total 
39,587 
44,004 
49,854 
56,255 
63,335 
73,328 
78,000 

Sources: Union Budget 2011-12 to Union Budget 2017-18; PRS. 

Note: Revised Estimates data used for 2014-15 and 2016-17, Budget Estimates data used for 2017-18. 

Table 8: Expenditure of the Central Armed Police forces over the last five years in Rs crore 
Major Head 
2011-12 
2012-13 
2013-14 
2014-15 
2015-16 
2016-17 
2017-18 
CRPF 
8,912 
9,983 
11,124 
12,866 
14,327 
16,998 
17,869 
BSF 
8,160 
9,095 
10,294 
11,717 
12,996 
14,840 
15,569 
CISF 
3,227 
3,798 
4,301 
4,938 
5,662 
6,463 
6,686 
AR 
2,821 
2,901 
3,276 
3,436 
3,848 
4,642 
4,802 
ITBP 
2,022 
2,506 
3,051 
3,405 
3,773 
4,590 
4,824 
SSB 
1,750 
2,179 
2,719 
3,155 
3,418 
4,096 
4,321 
NSG 
502 
500 
498 
538 
568.54 
721.27 
816.1 
Total 
27,394 
30,962 
35,263 
40,055 
44,591 
52,350 
54,887 

Sources: Union Budget 2015-16 to Union Budget 2017-18; PRS. Notes: Revised Estimates data used for 2014-15 and 2016-17, Budget Estimates data used for 2017-18; CRPF: Central Reserve Police Force; BSF: Border Security Force; CISF: Central Industrial Security Force; AR: Assam Rifles; ITBP: Indo Tibetan Police Force; SSB:  
Sashastra Seema Bal; NSG: National Security Guard. 

Major Head 
2011-12 
2012-13 
2013-14 
2014-15 
2015-16 
2016- 17 
2017- 18** 
Disaster management* 
444 
540 
685 
509.28 
1,238 
1,510 
1,677 
Pensions and other benefits of freedom fighters 
837 
798 
842 
785.47 
789.47 
760.16 
750.2 
Relief and rehabilitation of J&K migrants 
112 
95 
152 
160 
556.25 
1,124.26 
1,205.9 
Census 
2,638 
1,051 
765 
648.43 
594.4 
647.48 
634.6 
Cabinet 
1,029 
534 
370 
439.48 
671.95 
646 
730 

Sources: Union Budget 2011-12 to 2017-18; PRS. Notes: * Includes expenditure allocated under the heads of National Disaster Response Force, other disaster management projects, National Cyclone Risk Mitigation Project and transfers to Delhi Puducherry, Lakshadweep and Andaman and Nicobar Islands. 

 

 