Govt sets aside ₹2.95 lakh crore for defence
India on Thursday allocated ~2.95 lakh crore for military spending during 2018-19, a modest hike of 7.8% over last year’s budget of ~2.74 lakh crore. The budget includes a capital outlay of ~99,563 crore for buying new weapons and systems, up from ~86,488 crore.
The budget has breached the ~4 lakh crore-mark if defence pensions (~1.08 lakh crore) are factored in. The pension outlay exceeds capital expenditure.
In a stark departure from a worrying trend of surrendering unspent money, the defence ministry was able to utilise the entire capital outlay in the budget for 2017-18. Last February, the ministry surrendered Rs 6,886 crore.
In his Budget speech in Parliament, finance minister Arun Jaitley the NDA government had given emphasis to modernising and enhancing the military’s operational capabilities.
“Ensuring adequate budgetary support will be our priority,” he said. Calling it a reasoned out budget, defence minister Nirmala
NEWDELHI: SMRITI IRANI, I&B minister
Sitharaman thanked Jaitley for the “financial accommodation” and said the military would “prioritise” its modernisation projects.
However, India’s defence spending continues to be on the decline measured against its gross domestic product (GDP). This year it has slipped to a mere 1.57% of the GDP.
The outlay is inadequate to meet the military’s growing requirements including new fighter planes, next-generation submarines, helicopters, mid-air refuellers, artillery guns, missiles
RAJNATH SINGH, Home minister
and other weapons and systems, experts said. “Given that the increasing threats and challenges India faces – particularly the threat of a two-front war – the defence budget remains grossly inadequate,” said strategic affairs expert Brigadier Gurmeet Kanwal (retd). He said the outlay was insufficient for military preparedness of a high order.
India’s spending as a percentage of GDP should be around 3% to build robust military capabilities to stay prepared for a twofront threat from China and Pakistan, the experts said.
MANMOHAN SINGH, Former PM
Figures in ~ lakh crore
(as % of GDP)
AMIT SHAH, BJP chief
(1.72%) (1.74%)
(1.78%) (1.62%) (1.57%)