New Delhi: In a marginal hike, the defence budget was increased to Rs 3.37 lakh crore for 2020-21 against last year's Rs 3.18 lakh crore, belying expectations of a significantly enhanced allocation to fast-track long-pending military modernisation.
Riding on an ambitious plan for disinvestment, a sharp jump in non-tax revenues and tight control on outlays for subsidies as well as defence, Finance Minister Nirmala Sitharaman on Saturday promised to bring the Union government’s fiscal consolidation programme back on track.
Let's know what is special for the Defence sector in this budget:
- Defence budget hiked by 6% from Rs 3.18 lakh crore to Rs 3.37 lakh crore. With defence pensions, the total budget would go upto Rs 4.7 lakh crore.
- Out of total allocation, Rs 1.13 lakh crore has been set aside for capital outlay to purchase new weapons, aircraft, warships, and other military hardware.
- The revenue expenditure which includes expenses on payment of salaries and maintenance of establishments has been pegged at Rs 2.09 lakh crore.
- The total outlay does not include Rs 1.33 lakh crore set aside separately for payment of pensions.
- The percentage of the allocation has almost remained static at around 1.5 per cent of the GDP which, according to experts, is the lowest since the 1962 war with China.
ALSO READ: FY21 nominal GDP pegged at 10% says FM
