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 2018-19, and presents some issues in the sector.

Overview of Finances[1]

The Ministry of Home Affairs (MHA) has been allocated Rs 1,07,573 crore in Union Budget 2018-19.  This is an increase of 5.1% over the revised estimates in 2017-18, which was Rs 1,02,391 crore.  Further, this is 10.7% higher than the budget allocation of last year, which was Rs 97,187 crore.  The budget for the Ministry of Home Affairs constitutes 4.4% of the total expenditure budget of the union government in 2018-19. 

Figure 1 below shows the allocation to the Ministry of Home Affairs between 2009 to 2018.  The average annual growth rate in the allocation over the last ten years has been 12%. 

Figure 1: Allocation to Ministry of Home Affairs (in Rs crore) (2009-18)

Sources: Union Budget 2011-18; PRS.

Of the total budget estimates for 2018-19, (i) 81.7% of the expenditure is on police; (ii) 13.1% is on grants made to union territories (UTs), and (iii) 5.2% 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 last three years.

Table 1: Ministry of Home Affairs budget estimates (in Rs crore) (2018-19)

Source: 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 2018-19, Rs 87,887 crore has been allocated toward police.  Budget estimates for police has increased by 6.8% from revised estimates for 2017-18, which was Rs 82,293 crore.

Under the Constitution, police and public order are state subjects.  However, the central government supplements the efforts of the states to fight extremism.[2]  The centre is responsible for the seven central armed police forces and the Delhi police.  In addition, it provides the infrastructure for border management and intelligence gathering. 

The central government also supports the expenditure towards the state police through centrally sponsored schemes for modernisation of police forces.

Grants and loans to Union Territories: Around 13.1% of the Ministry’s budget, i.e. Rs 14,123 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 2018-19 budget estimates for grants and loans to union territories has seen a marginal decrease of 0.9% from revised estimates for 2017-18, which was Rs 14,248 crore.

Other items: Other miscellaneous expenditure items of the Ministry of Home Affairs have been allocated Rs 5,563 crore.  This includes subjects such as disaster management, rehabilitation of refugees and migrants, and administrative matters (relating to the census, the secretariat and Cabinet).  Expenditure on these items constitutes 5.2% of the Ministry’s total budget for 2018-19.

Analysis of key areas of expenditure

This section discusses the trends in expenditure of the police as it constitutes the largest proportion (82%) of the total budgetary allocation of the Ministry of Home Affairs.

Police

In 2018-19, Rs 87,887 crore has been budgeted for police expenditure.  Table 2 below details the allocations made to major items of expenditure related to police. 

Table 2: Major expenditure items under police (in Rs crore)

Source: Union Budget 2018-19; PRS.

Notes: *Infrastructure for Delhi Police is covered separately 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 Central Armed Police Forces (CAPFs) account for the largest share of expenditure under police (71%).  Figure 2 below shows the proportion of various items related to police expenditure.

Figure 2: Composition of police expenditure

Source: Union Budget 2018-19; PRS.

Note:  IB is Intelligence Bureau.

The total budget for police for 2018-19 has increased by 6.8% over the revised estimates of 2017-18.  Figure 3 below shows the comparison of budget estimates and actuals for police over the last nine years.

Figure 3: Budget estimates vs actuals for police (in Rs crore) (2009-18)

Sources: Union Budgets 2011-17; PRS.

Note: Revised Estimates used for 2017-18.

The actuals for police expenditure have been higher than budget estimates in five out of nine years.  

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 4 shows the budget allocation to each of the seven central armed police forces for 2018-19, compared to the revised estimates of 2017-18.

Figure 4: Budget vs revised estimates for CAPFs (in Rs crore) (2018-19)

Source: Union Budget 2018-19; PRS.

For 2018-19, the Central Reserve Police Force has been allocated 32.2% of the total budget for central armed police forces, i.e. Rs 20,268 crore.  The second highest expenditure is towards the Border Security Force which has been allocated 27.3% of the total budget, i.e. Rs 17,119 crore. 

Vacancies

Data from the Bureau of Police Research and Development shows that vacancies among CAPFs has been a persistent issue.[3]  As of January 2017, the total sanctioned strength of the seven central armed police forces was 10,78,514.[4]  However, 15% of these posts (i.e. 1,58,591 posts) were lying vacant.  Table 3 below shows the percentage of vacancies in the seven CAPFs over the last six years.

Table 3: Vacancies in CAPFs (2012-17)

Sources: “Data of Police Organizations”, Bureau of Police Research and Development, 2012-17; PRS.

Note:  Figures for each year are as of January 1 of that year.

In January 2017, the Sashastra Seema Bal had a very large number of vacancies (57%).  The Central Reserve Police Force, which accounts for 30% of the total sanctioned strength of the seven CAPFs, had a vacancy of 8%.

Service conditions and pay

The Standing Committee on Home Affairs in the year 2017 had expressed concern over working conditions of personnel of the border guarding forces (BSF, ITBP, SSB and AR).  The Committee observed that they had to work for 16-18 hours a day, with little time for rest and sleep.[5]  They were also not satisfied with medical facilities that had been provided at border locations.

Further, the Committee noted that personnel of the Central Armed Police Forces had not been treated at par with the Armed Forces, in terms of pay and allowances.⁵  The demand for Paramilitary Service Pay, similar to Military Service Pay, had not been agreed to by the Seventh Central Pay Commission.⁵  In addition, the Committee observed that hard-area allowance for personnel of the border guarding forces was much lower as compared to members of the Armed Forces, despite being posted in areas with difficult terrain and harsh weather. 

Border Infrastructure and Management

Allocations to border infrastructure and management include outlays for maintenance of border works, border check posts, border out posts, and capital outlays for various items including barbed wire fencing, construction of roads, and Hi-tech surveillance on Indo-Bangladesh and Indo-Pakistan borders. Additionally, it includes capital outlays for construction activities at India’s international borders, and for setting up mobile check posts in coastal areas.  Table 4 shows the expenditure under this provision.    

Table 4: Expenditure related to border infrastructure and management (in Rs crore)

Source: Union Budget 2018-19; PRS.

For 2018-19, Rs 1,750 crore has been budgeted for border infrastructure and management.  This is 14.2% lower than the 2017-18 revised estimates.  In 2017-18, the budget estimates for border infrastructure and management was Rs 2,600 crore.

Figure 5 below shows the expenditure (actuals) on border infrastructure and management for the last five years.  The expenditure on this item has increased on average by 2% over this period.

Figure 5:  Expenditure on border infrastructure and management (in Rs crore) (2013-18)

Sources: Union Budgets 2015-18; PRS.

Note: Revised Estimates used for 2017-18.

Delays in project implementation

The Standing Committee on Home Affairs observed in 2017 that infrastructure projects at borders have faced delays, particularly due to problems in land acquisition.^5,[6]  Demands for compensation, by farmers residing in border areas, had not been met.⁵  The Committee had also observed that funds allocated for infrastructure projects at the border have been underutilised.⁶

The coastal security scheme is a part of border infrastructure and management.  The Standing Committee on Home Affairs had noted in 2017, that implementation of this scheme within the set timeframe has not been possible for reasons including delay in procurement of motor boats.⁵  Various other issues that have affected coastal security include inadequate infrastructure of Indian Coast Guard (ICG) and coastal police forces, and lack of coordination between the Indian Navy, ICG, and coastal police.⁵

Institutional mechanism for border security

In its report of 2017, the Standing Committee on Home Affairs examined the institutional mechanism in place for improving border security, particularly the functioning of agencies such as the National Intelligence Grid (NATGRID) and the Multi-Agency Centre (MAC).⁵ 

The NATGRID was created to connect intelligence and law enforcement agencies with organisations that provide data (such as banks, and airlines), to enhance counterterrorism capacity.  The Committee noted that various issues remain in implementation of the project including non-procurement of equipment, and several vacancies of technical consultants.⁵

The MAC was set up to coordinate intelligence inputs for counterterrorism.  Subsidiary Multi Agency Centres (SMACs) have been set up in various states for streamlining intelligence efforts.  The Committee had observed that the contribution of state-level agencies has been low in the inputs received by the MAC, which may signal weak intelligence gathering capacity of states.⁵  

Modernisation of Police Forces (MPF)

For 2018-19, the central government has made allocations towards four items related to modernisation of police force.  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 over the last three years is outlined in Table 5 below.

Table 5: Expenditure related to modernisation of police (in Rs crore)

Source: Union Budget 2018-19; PRS.

Financing of the MPF scheme has changed over the years.  Following recommendations of the Fourteenth Finance Commission, it was decided that the scheme would be delinked from central government funding from 2015-16 onwards.[7]  However the Standing Committee on Home Affairs, in 2015 and 2017, highlighted the strategic importance of the scheme, and the improvements brought about in infrastructure of state police forces throughout the country.^6,[8]  In September 2017, the Union Cabinet approved an outlay of Rs 25,060 crore under the scheme, for the period 2017-18 to 2019-20.[9]

For the year 2018-19, Rs 3,157 crore has been budgeted for the scheme.  This is an increase of 22.5% over the 2017-18 revised estimates of Rs 2,577 crore.  Figure 6 below shows the amount of modernisation funds (central and state) made available between 2010 and 2017.  Note that there is a sharp decline in central funds after 2015-16.

Figure 6: Central and state funds for modernisation of police scheme (in Rs crore) (2010-17)

Sources: “Data on Police Organizations”, Bureau of Police Research and Development, 2011-17; PRS.  

Modernisation of state police forces (MSPF) scheme

Funds from the MSPF scheme are utilised for improving police infrastructure through construction of police stations, and provision of modern weaponry, surveillance, and communication equipment.  Upgradation of training infrastructure, police housing, and computerisation are also important objectives under the scheme.

Some of the issues regarding the MSPF scheme are analysed below.  

Misuse of funds:  The Standing Committee on Home Affairs noted in 2017 that funds meant for mobility, communication, weapons, and equipment have been misused by states for procuring vehicles.⁶  This misuse was happening despite releasing funds after obtaining utilisation certificates from states.  

Underutilisation of funds:  Data from the Bureau of Police Research and Development, shows that there has been a persistent problem of underutilisation of modernisation funds.[10]  In 2016-17, the centre and states allocated Rs 2,066 crore for modernisation, of which Rs 1,546 crore (75%) was utilised.  In the previous year, only 14% of the modernisation funds was utilised.  Figure 7 below shows the level of utilisation of modernisation funds between 2010-11 and 2016-17. 

Figure 7: Utilisation of funds for modernisation (%)

Sources:  Data on Police Organizations, Bureau of Police Research and Development, 2011-17; PRS.

Construction:  Construction of well secured police stations and houses for police personnel is an important component of the scheme.[11]  The Comptroller and Auditor General (CAG) has observed that there were considerable delays in construction of residential and non-residential buildings in most states.^11,[12]

Other expenditure items

Disaster management

The Ministry of Home Affairs is the nodal ministry for handling all types of disasters other than drought, which is handled by the Ministry of Agriculture.[13]  It is responsible for various aspects of disaster management including capacity building, mitigation, and response to natural calamities and man-made disasters.⁶  Table 6 below shows the allocation for various items related to disaster management.

Table 6: Expenditure on major items related to disaster management (in Rs crore)

Source: Union Budget 2018-19; PRS.

*Allocation to the National Disaster Response Fund is made by the Ministry of Finance.   

Some of these allocations and issues related to disaster management are examined below.

National Disaster Response Fund

The Disaster Management Act, 2005, mandates the creation of a National Disaster Response Fund and State Disaster Response Funds.[14]  Relief assistance is provided to states from the National Disaster Response Fund in case of severe natural calamities, where the State Disaster Response Fund is insufficient to cover the required expenditure.[15] Allocations to the National Disaster Response Fund are made by the Ministry of Finance, though it is administratively controlled by the Ministry of Home Affairs.¹⁵  For the year 2018-19, a budgetary allocation of Rs 2,500 crore has been made to the fund, which is a 31.7% decrease from the revised estimates of 2017-18.

The CAG, in 2013, observed that funds have been released to states from the National Disaster Response Fund, despite availability of balances in the State Disaster Response Fund. [16] 

In 2015, the Standing Committee on Home Affairs examined the response to Cyclone Hudhud in states of Andhra Pradesh and Odisha.[17]  The Committee recommended that the National Disaster Response Fund should be expanded to cover reconstruction and mitigation components of disaster management.  Further, advance amounts should be released to states when severe calamities occur, without waiting for assessment and clearance of the central government.  In addition, the Committee found that only sixteen states (as of December 2015) had created State Disaster Response Funds.

National Cyclone Risk Mitigation Project

The National Cyclone Risk Mitigation Project (NCRMP) was launched by the Ministry of Home Affairs with the aim of minimising vulnerability in states and Union Territories that are prone to cyclone hazards.  Key objectives of the project include: (i) improving early warning dissemination systems, (ii) construction and maintenance of cyclone shelters, (iii) improved access and evacuation through construction of roads and bridges, and (iv) enhance capacity of local communities to respond to disasters.  

For 2018-19, a budgetary allocation of Rs 3.94 crore has been made to this project.  This is a 16.2% increase from the revised estimates for 2017-18, which was R 3.4 crore.  The Standing Committee on Home Affairs observed in 2017 that construction activity under the project had been delayed.⁶  Many of the shelters, roads, and bridges were still under execution, and several other projects were in various stages of finalisation, environmental clearance, and the tendering process.

The NCRMP also contains a provision for expenditure on ‘National Cyclone Risk Mitigation Project with World Bank Assistance’, to reduce the vulnerability of coastal states which are prone to cyclone hazards.⁶ 

For 2018-19, a budgetary allocation of Rs 600 crore has been made for this provision.  It has decreased by 4.3% from the 2017-18 revised estimates, which was Rs 690 crore.

National Disaster Response Force

The National Disaster Response Force (NDRF) is a specialised force that is responsible for disaster response and relief.  For 2018-19, the budget estimates for the NDRF is Rs 864 crore.  This is 9% higher than the revised estimates of Rs 793 crore, for 2017-18. 

Recruitment policy

The Ministry of Home Affairs constituted a Task Force in 2010 to review the Disaster Management Act, 2005, which submitted its report in 2013.[18]  The Task Force noted that personnel in the NDRF are recruited from different Forces and go back after a specified period.  The skills and expertise that they develop, may not be available for disaster response after they leave the force.   

Annexure

Table 7: Allocation to the Ministry of Home Affairs (in Rs crore)

Source: Union Budget 2017-18; PRS.

Note: *Includes expenditure on disaster management, social security, rehabilitation of refugees, migrants, census, civil defence, secretariat.

Table 8: Vacancies in the CAPFs (as of January 2017)

Source: “Data on Police Organizations”, Bureau of Police Research and Development, 2017; PRS.

Note: 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.

Table 9: Expenditure of the Central Armed Police Forces (in Rs crore)

Table 10: Utilisation of funds for police modernisation (in Rs crore)

Sources: “Data on Police Organizations”, Bureau of Police Research and Development, 2011-17; PRS.

Table 11: State-wise utilisation of funds for police modernisation (2016-17) (in Rs crores)

Source: Data on Police Organisations 2017, Bureau of Police Research and Development; PRS.

NA: Not available.

 

[1]. Demand Nos. 46-55, Demand for Grants, Union Budget 2017-18.

[2]. “199th Report: Action taken by the Government on the recommendations/observations contained in the 197th Report on the Demands for Grants (2016-17) of Ministry of Home Affairs”, Department Related Standing Committee on Home Affairs, February 8, 2017.

[3]. “Data on Police Organizations”, Bureau of Police Research and Development, 2012-17.  

[4]. “Data on Police Organisations”, Bureau of Police Research and Development, 2017, http://bprd.nic.in/WriteReadData/userfiles/file/databook2017.pdf.

[5]. “Border Security: Capacity Building and Institutions”, Department Related Standing Committee on Home Affairs, April 11, 2017, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20Home%20Affairs/203.pdf.    

[6]. “201st Report: Demands for Grants (2017-18) Ministry of Home Affairs”, Department Related Standing Committee on Home Affairs, Rajya Sabha, March 15, 2017, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20Home%20Affairs/201.pdf.  

[7]. “Major Programmes under Central Assistance for State Plans”, Union Budget 2015-16, https://content.indiainfoline.com/budget/2015/ub/bag/bag8.pdf.   

[8]. 185th Report: Demand for Grants (2015-16) Ministry of Home Affairs”, Department Related Standing Committee on Home Affairs, April 23, 2015, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20Home%20Affairs/185.pdf. 

[9]. “Cabinet approves umbrella scheme of Modernisation of Police Forces”, Press Information Bureau, 27^th September 2017.

[10]. “Data on Police Organizations”, Bureau of Police Research and Development, 2011-17.  

[11]. “Compendium on Performance Audit Reviews on Modernisation of Police Force”, Comptroller and Auditor General, http://www.cag.gov.in/sites/default/files/cag_pdf/Compendium_Performance_Audit_Reviews_Modernisation_Police_Force.pdf.   

[12]. “Performance Audit of Modernisation and Strengthening of Police Forces, Government of Uttar Pradesh”, Comptroller and Auditor General, http://www.cag.gov.in/sites/default/files/audit_report_files/Report_No.3_of_2017_Performance_Audit_of_Modernisation_of_Police_Forces_Government_of_Uttar_Pradesh.pdf.   

[13]. Report of the Fourteenth Finance Commission, Government of India, 2014, http://www.thehinducentre.com//multimedia/archive/02321/14th_Finance_Commi_2321247a.pdf. 

[14]. Sections 46 and 48, Disaster Management Act, 2005.

[15]. “Operational Guidelines for Constitution and Administration of the National Disaster Response Fund”, Ministry of Home Affairs, September 28, 2010, http://doe.gov.in/sites/default/files/Guidelines%20for%20National%20Disaster%20Response%20Fund%20%28NDRF%29.pdf.  

[16]. “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.

[17]. “195th Report: Devastations caused by Natural Disaster Hudhud Cyclone in Andhra Pradesh and Odisha”, Department Related Standing Committee on Home Affairs, December 22, 2015, http://164.100.47.5/newcommittee/reports/EnglishCommittees/Committee%20on%20Home%20Affairs/195.pdf. 

[18]. “Report of the Task Force: A Review of the Disaster Management Act, 2005”, Ministry of Home Affairs, March 2013, http://gbpihedenvis.nic.in/PDFs/Disaster%20Data/Reports/Report_task_force_Disaster_management_act_2005.pdf.   

 

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