Budget 2020: In a marginal hike, defence budget raised to Rs 3.37 trillion

New Delhi: In a marginal hike, the defence budget was increased to Rs 3.37 trillion for 2020-21 against last year’s Rs 3.18 trillion, belying expectations of a significantly enhanced allocation to fast-track long-pending military modernisation.

Out of total allocation, Rs 1.13 trillion has been set aside for capital outlay to purchase new weapons, aircraft, warships and other military hardware, according to the Union Budget presented in Lok Sabha on Saturday by Finance Minister Nirmala Sitharaman.

The revenue expenditure which includes expenses on payment of salaries and maintenance of establishments has been pegged at Rs 2.09 trillion.

The total outlay does not include Rs 1.33 trillion set aside separately for payment of pensions.

The percentage of the allocation has almost remained static at around 1.5 per cent of the GDP which, according to experts, is the lowest since the 1962 war with China.