T-72 tanks, produced by Russia and used by the Indian Army, roll down the Rajpath during the Republic Day parade in New Delhi. (Photographer: Sondeep Shankar/ Bloomberg News)

Budget 2019: Defence Gets Rs 3.18 Lakh Crore For 2019-20

An allocation of Rs 3.18 lakh crore was made in the Union Budget to the defence sector for 2019-20 as against last year’s Rs 2.98 lakh crore.

Out of the total allocation, Rs 1.08 lakh crore has been set aside for capital outlay to purchase new weapons, platforms and military hardware.

The revenue expenditure—which includes expenses on payment of salaries and maintenance of establishments— has been pegged at Rs 2.10 lakh crore as against Rs 1.88 lakh crore for 2018-19.

The outlay for the defence sector almost remained unchanged compared to what was allocated in the interim budget on Feb. 1.

The allocation of Rs 3.18 lakh crore represents a growth of 7.93 percent over budget estimates of Rs 2.95 lakh crore and 6.87 percent over revised estimates Rs 2.98 lakh crore respectively for 2018-19, according to Minister of Defence Rajnath Singh’s office.

The total outlay does not include Rs 1.12 lakh crore set aside separately for payment of pensions.

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If allocation for pension is included, then the total outlay for defence stands at Rs 4.31 lakh crore which accounts for 15.47 percent of the total central government expenditure for the year 2019-20.

“The capital allocation of Ministry of Defence under budget estimate 2019-20 is 31.97 percent of the total central government capital expenditure, which is Rs 3,38,569.00 crore,” Singh’s office tweeted.

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Bloomberg Quint

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