Finance Minister Nirmala Sitharaman, while presenting the budget in Lok Sabha, announced that the defence sector of the country has been allocated Rs 5.25 lakh crore which is an increase from last year’s allocation of Rs 4.78 lakh crore.
Out of the total budget, Rs 1,52,369 crore has been allocated for capital expenditure including the purchase of new fighter jets, arms, warships, and other significant military equipment. The budget allocation for capital outlay was Rs 1,35,060 crore for the current fiscal but the revised estimate showed the expenditure at Rs 1,38,850 crore. Rs 2,33,000 crore has been allocated for the next fiscal for revenue expenditure that includes expenditure of salary payments and maintenance of various military establishments. Rs 1,19,696 crore has been kept for pensioners and Rs 20,100 crore has been allocated for the Ministry of Defence (Civil).
The major milestone in this year’s budget has been the 25% annual research and development budget for private firms in defence manufacturing.
“Our government is committed to reducing imports in equipment for the armed forces. Defence R&D will be opened up for the industry, startups, and academics with 25% of the defence R&D budget earmarked,” Nirmala Sitharaman said in the Lok Sabha while presenting the budget.
