Defence Budget presented for 2019-20

In his presentation of the ‘Interim Budget for 2019-20’ in Parliament on 1 February 2019, acting Finance Minister Piyush Goyal announced a total outlay of Rs 3.05 lakh crore for the defence budget in this FY, a hike of some Rs 10,000 crore from Rs 2.95 lakh crore last fiscal. Over and above the defence budget, an amount of Rs 1,12,079.57 crore has been allocated for defence pensions, which has exceeded the allocation of Rs 1,08,248.80 crore made for capital expenditure.

The Minister qualified the presentation in saying “our defence budget will be crossing Rs 3 lakh crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided”. Defence analysts however opined that India’s defence spending continued to slide measured against its gross domestic product (GDP)… this year it is a mere 1.51% of the GDP, the lowest in decades. It is argued that considering the security environment, India should be spending some 3% of its GDP to enhace military capabilities.