Defence Budget 2019 is Only 1.5% of GDP Despite Crossing 3-Trillion Mark, Lowest Since 1962 War

The Narendra Modi government on Thursday allocated Rs 3.05 lakh Crore for the defence forces of the country. However, later the defence ministry put the total allocation at Rs. 3,18,931 crore which included funds set aside for Border Roads Organisation, Coast Guards and salaries if civil staff of the defence ministry. Interim Finance Minister Piyush Goyal while presenting the budget, said that it was for the first time that the defence budget crossed 3-trillion mark. But if we deeply analysis the budget it is merely 1.5 percent (approx.) of the Gross Domestic Product (GDP) so this becomes the lowest defence budgetsince China war of 1962. Defence Budget 2018 is another farce, 1.58% allocated for defence.

This year’s budget was 6.7 percent than previous year’s budget. Meanwhile, in 2018, the budget represented a growth of 7.81 per cent over budget of 2017. In the interim budget 2019, Rs 1,03,380 crore was allocated for capital expenditure to modernize the forces, while rest of the amount is to meet the revenue expenditure. Apart from the defence budget, the government also allocated Rs 35,000 crore for One Rank One Pension (OROP). The government also announced a hike in the Military Service Pay (MSP) of all service personnel and special allowances given to Naval and Air Force personnel deployed in high-risk duties. Meanwhile, Rs 1.12 lakh crore have been allocated for pensions. Expectations from Defence Budget 2018-19 and needs of our Defence Forces.

If we talk about last year’s budget, it was 1.58 percent of the GDP. A total of Rs 2,95,511.41 crore was allocated for defence, out of which Rs 99,563.41 is allocated for capital expenditure. Meanwhile, the remaining budget outlay, Rs 1,95,947.55 was set aside for for revenue expenditure. In 2018 budget Rs 1,08,853.30 was also allocated for defence pensions.