• Associate Sponsor

Budget 2016: Rs 2.58 lakh crore allocated for defence, here are ten things you need to know

This is the first time in public memory that outlay for defence was not covered by the Finance Minister in his speech to the Lok Sabha.

Written by Sushant Singh | New Delhi | Updated: March 3, 2016 1:55 pm
budget 2016, budget live, union budget 2016, general budget, 2016 budget news, budget news, union budget news, general budget news, budget 2016 news, budget income tax, union budget 2016, income tax, budget expectations, arun jaitley, budget news india, budget india news Army soldier uses binocular to locate militant positions near the site of a gunbattle in Sempora Pampore. EXPRESS PHOTO BY SHUAIB MASOODI

Finance Minister Arun Jaitley on Monday did not mention about military spending in his budget speech. Here are the 10 things you should know about the defence budget

1. This is the first time in public memory that outlay for defence was not covered by the Finance Minister in his speech to the Lok Sabha.

2. The Defence Budget used to be covered under eight demands till FY 2015-16 (Demand Numbers 21 to 28) but is now under only four demands (Numbers 20 to 23).

3. Since the mid-1980s, defence pensions were not included in the defence budget. But defence pensions have now been included in the defence budget.

4. Excluding the defence pensions, an amount of Rs 258,589 crore has been allocated for defence. This compares with Rs 2,46,727 crore allocated in the last budget, out of which Rs 233,341 crore was spent by the defence ministry.

Share This Article
Related Article

5. A total of Rs 82,332 crore has been budgeted for defence pensions this time, mainly to cater for the announcement of One Rank One Pension (OROP) and the Seventh Pay Commission. In comparison, Rs 54,500 crore were allocated for pensions in the last budget but the actual bill shot up to Rs 60,238 crore.

6. Rs 95,852 crore will be spent on pay and allowances of military personnel and civilians of the defence ministry in the coming year.

7. Out of Rs 85,894 crore allocated last year for capital expenditure by defence services, the defence ministry was unable to use 13.5% of the amount. An amount of Rs 78,586 crore has been allocated for capital expenditure of the defence services this year.

8. In a first, the defence services even returned money from their revenue allocation. Rs 6,732 crore were returned out of a revenue allocation of Rs 132,540 crore last year.

9. The capital allocation in this budget and the perennial underspending means that defence modernization will continue to suffer in the coming year.

10. The defence budget comes to 1.71 % of the GDP, and taken with defence pensions, 2.26 % of India’s GDP. The parliamentary standing committee has recommended a minimum of 3% of GDP as the defence budget in its reports to the parliament.

For all the latest Business News, download Indian Express App

  1. A.s. Malhotra
    Mar 1, 2016 at 9:48 am
    Keeping the financial burden of 7th pay commission and OROP in the forthcoming months, it is better that the Defence budget has been cut down in this financial year. Hopefully, launching of "Make in India" in Defence sector by Hon'ble Prime Minister of India and his Council of Ministers of BJP-NDA government will be able to meet the demand. In this connection the defence authorities are pursuing vigorously to complete this mission in time bound manner and be able to develop the state of the art armament, weapons and other equipment. This may give lot of impetus to earn huge amount be way of importing these items to other countries as per International Treaties. Furthermore, the defence can also self support by way of providing training to the army personnel of the other countries. In addition, efforts be made to incur less amount in terms of foreign exchange on instruments, electronic gadgets, foreign tours and other miscellaneous expenses etc. by various Units of defence forces and Insutions of Defence Research and Development Organisation to enhance GDP of the country. But Government should also has the reserve funds for Defence Sector to meet the demands in emergencies.