Defence budget sees marginal rise despite major modernisation push by armed forces

The defence budget (without pensions) comes to Rs 3.37 lakh crore, which is an increase of Rs 19,000 crore -- or 5.97%.
Image used for representational purpose (File | PTI)
Image used for representational purpose (File | PTI)

NEW DELHI: The money given to the Indian Armed Forces for the year 2020-21 has seen a marginal increase even as there has been high-decibel talk of a push for military modernisation.

The government has allocated Rs 4.7 lakh crore for defence, which is an increase of Rs 40,000 crore. This includes the money used for paying pensions to ex-servicemen.

The defence budget (without pensions) comes to Rs 3.37 lakh crore, which is an increase of Rs 19,000 crore -- or 5.97%.

Of this, capital allocation (money for new acquisitions and modernisation) is pegged at Rs 1,13,734 crore for 2020-2021, a rise of Rs 10,340 cr. This has to factor in the devaluation of the rupee in dollar terms and inflation too. Thus the increase will likely go in meeting this.

Rs 2,23,819 crore is earmarked as the revenue portion of the defence budget used for maintaining and administering the Army, Navy and Air Force along with their salary payments.

India has a massive standing military of 1.4 million personnel with two borders having an active deployment.

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