Budget 2019 : Defense

July 5, 2019 July 5, 2019

The Union Budget of India has allocated nearly Rs 3.18 crore for the Defense sector in the budget. This is a modest increase of Rs 20,000 crore over the previous allocation. The allocation is a growth of 7.93 % over budget estimates of Rs 2.95 lakh crore and 6.87 % over revised estimates Rs 2.98 lakh crore respectively for 2018-19

This outlay for the defence sector has almost remained unchanged when compared to what was allocated in the interim budget presented by Piyush Goyal on February 1.

What goes where?

Rs 1,08,248 crore has been set aside as the capital outlay to purchase new weapons, platforms and military hardware.
The revenue expenditure (expenses on payment of salaries and maintenance of defense establishments) has been estimated at Rs 2,10,682 crore.
This is an increase over the previous expense of Rs 1,88,118 crore for 2018-19.

Is that all?

No, a further Rs 1,12,079 crore have been set aside separately for the payment of pensions to retired defense personnel.

How big is the pie?

If both the allocations for pension and defense are combined, then the total outlay for defense stands at Rs 4.31 lakh crore. This accounts for a total of 15.47 % of the total central government expenditure for the year 2019-20.