₹4.78 Lakh Cr Allocated To Defence Budget, Highest In 15 Years

In the Union Budget presented for 2021-22, Finance Minister Nirmala Sitharaman on Monday announced an allocation of rupees 4.78 lakh crores for the ministry of defence. As per reports, the budget allocation for the ministry to buy weapons and artillery is 19 per cent, the highest in the last fifteen years.  

The amount includes a capital expenditure worth rupees 1.35 lakh crore.

"The Union Budget made a 19 per cent higher allocation for the country's armed forces to buy new weaponry compared to last year and the highest in the last 15 years," NDTV reported.

In a tweet, the defence minister Rajnath Singh said, "The Union Budget made a 19 per cent higher allocation for the country's armed forces to buy new weaponry compared to last year and the highest in the last 15 years," adding, "Special attention has been paid to economic reforms, employment generation, capital formation and creating infrastructure in India. Based on 6 pillars of good governance this Budget will usher India into a new era of inclusive growth and prosperity".

The decision in the rise of the budget allocation for armed forces to buy weapons came during amidst the ongoing border tensions between India and China.

An India Today report reported that India is still far behind when it came to military spending. From 2014-2019, China spent $261.1 billion on defence budget, while India has spent $71.1 billion during the same tenure. Meanwhile, in that time period, Pakistan spent $10.3 billion.

Also, predictions are made that the fiscal deficit for fiscal 2021 have been squared at 9.5 per cent of the gross domestic product (GDP) and could fall to 6.8 per cent in fiscal 2022.