Indian Defence Budget 2021-22

Union Budget for the Financial Year 2021-22, presented by the Finance Minister Nirmala Sitharaman in the Parliament on 1 February 2021 includes “defence modernisation”, increasing defence capital outlay by 18.75 per cent. Defence allocation in the budget has been increased to Rs 4,78,195.62 crore for the FY 2021-22. Excluding Defence pensions, the total allocations for Defence Services and other organisations/Departments under Ministry of Defence for the FY is Rs 3,62,345.62 crore, an increase of Rs 24,792.62 crore over FY 2020-21.

The allocation under capital expenditure which relates to modernisation and infrastructure development of Armed Forces has been “significantly increased”. The allocation under Capital of Rs 1,35,060.72 crore for FY 2021-22 represents an increase of 18.75 per cent over FY 2020-21 and 30.62 per cent over FY 2019-20, “the highest ever increase in capital outlay for Defence in the last 15 years.”