India's defence budget for 2019-20 presented in parliament on Friday marked a 7.93 per cent increase to Rs 3.18 lakh crore from Rs 2.98 lakh crore in the previous financial year. Out of the total allocation this year, Rs 1, 08,248 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, is Rs 2, 10,682 crore as against Rs 1, 88,118 crore for 2018-19. The allocation of Rs 3,18,931 crore represents a growth of 7.93 per cent over budget estimates of Rs 2.95 lakh crore and 6.87 per cent over revised estimates Rs 2.98 lakh crore respectively for 2018-19, according to Defence Minister Rajnath Singh's office.
The total outlay does not include Rs 1, 12,079 crore set aside separately for payment of pensions. If allocation for pension is included, then the total outlay for defence stands at Rs 4.31 lakh crore which accounts for 15.47 per cent of the total central government expenditure for the year 2019-20. India is in the midst of a major drive to further modernize its armed forces and a number of mega deals with other countries are being planned.