Defence allocation-7.92% growth over last year estimates

Why is it in news?
  • The allocation for Defence in this year’s interim Budget stood at Rs. 3.18 lakh crore and Defence pensions at Rs. 1.12 lakh crore compared to last year’s allocation of Rs. 2.95 lakh crore excluding pensions.
  • This is a meagre hike considering the mega defence tenders lined up as part of military modernisation.
More in news
  • Statistical comparison:
  1. The allocation represents a 7.92% growth over the estimates of last year and 6.87% over the revised estimates of last year which was Rs. 2.98 lakh crore.
  2. Total allocation including Defence pensions forms 15.48% of the total Central government expenditure for the year 2019-20.
  3. Of this, the allocation for revenue expenditure is Rs. 2.01 lakh crore and capital expenditure is Rs. 1.08 lakh crore.
  • Meagre hike in allocation:
  1. In real terms the allocation is barely a hike after factoring in inflation and currency fluctuation.
  2. This is a worrisome scenario as for the much-needed military modernisation as several multi-billion dollar Defence deals are in the pipeline.
Source
The Hindu




Posted by Jawwad Kazi on 2nd Feb 2019
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