India’s Defence Budget 2020-21

BASICS

The total expenditure has been pegged at Rs 30.42 lakh crore in the Union Budget for 2020-21

Rs 4,71,378 crore, the total Defence Budget (65 billion dollars)

According to the Indian government’s Press Information Bureau (PIB), the defence budget accounted for 15.49% of the government’s total expenditure for the upcoming fiscal year.

LAST YEAR COMPARISON

Budget 2019, kept unchanged the allocation provided to the Ministry of Defence (MoD) in the interim budget on February 01, at Rs 4,31,011 crore ($ 61.96 billion)

COMPARING WITH CHINA

COMPARISON WITH USA

Despite impeachment proceedings progressing to the Senate, mercurial US President Donald Trump has sought to capitalise on a surging US economy to pass yet another increase for the US defence budget – expected to see the Pentagon receiving US$738 billion for FY2020.

UNDERSTANDING THE NUMBERS – INDIAN BUDGET

The total allocation for defence in 2020-21 including pensions stands at ₹4.71 lakh crore compared to ₹4.31 lakh crore last year.

There is a steep rise in defence pensions, 13.5%, from ₹1.18 lakh crore in revised estimates to ₹1.33 lakh crore.

Excluding defence pensions, the allocation this year is ₹3.37 lakh crore which is 5.67% higher compared to the budget estimate of last year and just 1.8% higher compared to the revised estimates of 2019-20 which was ₹3.31 lakh crore

NOTE

Chief of Defence Staff (CDS) General Bipin Rawat, suggested increasing the age of retirement in order to tackle a rise in budget pension which has been a significant drag for the defence budget.

Incidentally, as an Institute of Defence Studies and Analyses article points, out of Ministry of Defence’s total budget, close to 60 per cent is spent on salary and pensions of nearly 49 lakh personnel, of which 31 lakh are defence pensioners, 14 lakh uniformed and 4 lakh defence civilians.

NOTES

The Indian Air Force (IAF) got 38% of the ₹1.13 lakh crore capital component which comes to ₹43,281 crore, but in real terms, the capital allocation for the IAF has gone down from the revised estimates of 2019-20 which was ₹44,869 crore. In comparison, last year, the IAF had committed liabilities, payments for deals already signed for, of over ₹47,000 crore which was more than its entire capital allocation even then.

The IAF has signed several major deals including 36 Rafale jets from France, S-400 air defence systems from Russia, Apache attack helicopters and Chinook heavy lift helicopters from the US among others.

The resource constraint is likely to delay several multi-billion dollar deals for fighter jets, submarines and helicopters being processed through the Strategic Partnership model.

CRUNCH

The Indian Air Force (IAF) got 38% of the ₹1.13 lakh crore capital component which comes to ₹43,281 crore, but in real terms, the capital allocation for the IAF has gone down from the revised estimates of 2019-20 which was ₹44,869 crore.

In comparison, last year, the IAF had committed liabilities, payments for deals already signed for, of over ₹47,000 crore which was more than its entire capital allocation even then.

The IAF has signed several major deals including 36 Rafale jets from France, S-400 air defence systems from Russia, Apache attack helicopters and Chinook heavy lift helicopters from the US among others.

The resource constraint is likely to delay several multi-billion dollar deals for fighter jets, submarines and helicopters being processed through the Strategic Partnership model.

CHINA WAY

In a feature report on Sunday highlighting the “transformational changes” made by the PLA, China’s official news agency said:

This new data is unprecedented in the history of the PLA – the army now accounts for less than 50 per cent of the total number of PLA troops; almost half of our non-combatant units have been made redundant, and the number of officers in the PLA has been reduced by 30 per cent.”

INDIA’S TOTAL NUMBERS

With strength of over 1.4 million active personnel, it is the world’s second- largest military force and has the world’s largest volunteer army.

India will eventually need to trim down its military forces too

Leave a Comment

Your email address will not be published. Required fields are marked *