Budget 2019

Updated on: Wednesday, May 29, 2019, 02:53 AM IST

Budget 2019: Defence pegged at Rs 3.18 lakh crore


New Delhi: The defence budget was increased by 6.87 per cent to Rs 3.18 lakh crore against last year’s allocation of Rs 2.98 lakh crore, notwithstanding expectations of a major hike when China and Pakistan were bolstering their military capabilities. Out of the total allocation, Rs 1,08,248 crore has been set aside for capital outlay for the year 2019-2020 to purchase new weapons, aircraft, warships and other military hardware. Last year, the government allocated Rs 93,982 crore as capital outlay.

The defence ministry said the total allocation of Rs 3,18,931 crore in defence budget is an increase of 6.87 per cent over revised estimate of Rs 2,98,418 crore for 2018-19. The total outlay does not include Rs 1,12,079 crore set aside for payment of pensions. “The allocation for capital expenditure is totally inadequate given the kind of modernisation our armed forces are envisaging,” said Dr Laxman Behera of Institute of Defence Studies and Analysis.

Behera said the defence budget is around 1.44 per cent of the GDP which, he called as “insufficient” considering the evolving security situation in India’s neighbourhood. Presenting the interim budget for 2019-20 in Parliament, Union Minister for Finance and Corporate Affairs Piyush Goyal said additional funds, if necessary, would be provided to secure India’s borders and maintain its defence preparedness.


Click here for Live Updates, latest news and detailed analysis of Union Budget 2019

“Our defence budget will be crossing Rs 3,00,000 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,” he said. Under capital outlay, the Army was granted Rs 29,447 crore, the Navy was given Rs 23,156 crore and the Indian Air Force got an allocation of Rs 39,302 crore.

The revenue expenditure which includes expenses on payment of salaries and maintenance of establishments has been pegged at Rs 2,10,682 crore as against Rs 1,88,118 crore for 2018-19. Experts said Goyal’s budget was an interim budget and the allocation for defence forces may change when a full-fledged budget is presented by the new government after the Lok Sabha polls.


(To receive our E-paper on whatsapp daily, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Published on: Saturday, February 02, 2019, 10:04 AM IST