Arun Jaitley stated that, Òever since the NDA Government has assumed office in 2014, lot of emphasis has been given to modernising and enhancing the operational capability of the Defence Forces. Ensuring adequate budgetary support will be our priority.Ó
FiNANcE MiNistEr AruN JAitlEy started the budget speech by reiterating the GovernmentÕs past achievements and announcing new proposals for agriculture and rural economy; health, education and social protection; MsMEs and employment; infrastructure and financial sector development; building institutions and improving public service delivery, etc. All this under the centre Heading of ÔGovernance, Economy and DevelopmentÕ. this was on anticipated lines due to the elections coming up in many states during this year. indiaÕs annual budget becomes more of the GovernmentÕs arithmetical exercise on its revenue and expenditure with political overtones.
Union Budget for the financial year 2018- 19, presented by the Finance Minister Arun Jaitley in the Parliament envisaged a total outlay of ` 24,42,213 crore. Out of this, ` 2,95,511.41 crore has been earmarked for Defence which accounts for 12.10 per cent of the total central Government expenditure for the year 2018-19. This allocation represents a growth of 7.81 per cent over Budget Estimates (`2,74,114.12 crore) and 5.91 per cent over revised Estimates (`2,79,003.85 crore), respectively for the financial year 2017-18. However it is 1.58 per cent of GDP and lowest since 1962.
Revenue and Capital Allocations. Out of ` 2,95,511.41 crore allocated for the financial year 2018-19, ` 1,95,947.55 crore has been allocated for revenue (Net) expenditure and ` 99,563.86 crore for capital expenditure for the Defence services and the Organisations/Departments under Ministry of Defence.
Capital Allocation. the amount of ` 99,563.86 crore, allocated for Capital expenditure, includes modernisation related expenditure. the capital allocation for Ministry of Defence under Budget Estimates (BE) 2018-19 is 33.1 per cent of the total central Government Expenditure on capital Account, which is ` 3,00,441 crore.
RM’s Advisory Committee on Ministry of Defence Capital Projects
the raksha Mantri Nirmala sitharaman has constituted a 13 member raksha MantriÕs Advisory committee on Ministry of Defence (MoD) capital Projects (rMcOMP). the decision has been taken to expedite capital acquisitions to bolster armed forces preparedness. the committee is chaired by shri Vinay sheel Oberoi, Former secretary, Government of india. the other members are retired senior officers from Defence Psus, OFB, DrDO and the three services. there are two members from outside the