India’s Defence Budget For FY21-22 Decreases To Rs 4.78 Lakh Crore

New Delhi:The total outlay on India’s defence budget has decreased marginally to Rs 4.78 lakh crore as compared to last year’s revised estimate of Rs 4.84 lakh crore — a decrease of 1.34 per cent. The total capital outlay includes expenditure on pensions and the Ministry of Defence (Civil).

The government, however, said there is an increase in the capital outlay which will help the force in its modernisation programme. This budgetary allocation has been made when India is facing two hostile neighbours — Pakistan and China.

The capital allocation for defence stands at Rs 1.35 lakh crore this year as against the revised Budget of Rs 1.34 lakh crore for last year.

Last year’s estimated capital outlay was Rs 1.13 lakh crore and the defence forces spent Rs 20,776 crore more for procurement of arms and ammunition under the capital allocation head.

Reacting to the Budget, Indian Defence Minister Rajnath Singh tweeted, “I specially thank PM & FM for increasing the defence budget to 4.78 lakh cr for FY21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly 19 percent increase in Defence capital expenditure. This is highest ever increase in capital outlay for defence in 15 yrs.”

The revenue allocation for defence stands at Rs 2.12 lakh crore as against the revised budget of Rs 2.09 lakh crore for last year.

The allocation on pensions for defence personnel is Rs 1.15 lakh crore as against the revised allocation of Rs 1.25 lakh crore last year. It is less than even the revised budget allocation made last year.

Apart from that, the allocation for civil works under the Ministry of Defence is Rs 15,257 crore as against the revised allocation of Rs 15,914.06 crore in last year’s Budget. The civil allocation includes allocation for construction of roads, bridges, government-in-aid to state governments and housing in Northeast regions and border areas.

The defence ministry has carried out extensive construction work on the borders after China started the border dispute in April last year. The estimated budget for the civil works was Rs 14,500 crore and in revised estimates it increased to Rs 15,914.06 crore. The government spent Rs 1,414.06 crore extra in building infrastructure across the border.