Call Us Now

+91 9606900005 / 04

For Enquiry

legacyiasacademy@gmail.com

DEFENCE EXPENDITURE

Focus: GS-III Indian Economy, Internal Security

Why in news?

It may be seen from  data of economic survey that Defence Budget as a percentage of GDP may appear to be decreasing due to increasing trend in the growth of GDP. However, it is increasing in absolute terms, implying higher spending.

Details

  • The Indian Army, given its overwhelming size, continues to be the biggest stakeholder in the defence budget.
  • Among the three forces, army has, however, the lowest capital share.
  • Furthermore, its capital share has seen a decline, from a high of 26 per cent in 2007-08 to 18 per cent in 2020-21, largely due to increase in P&A, which accounts for 70 per cent of its total revenue expenditure and 57 per cent of the total budget in 2020-21.
  • The army’s increase in the revenue share is a cause of concern considering its attempt to shift to the higher side of the technology-driven warfare which requires a much greater spend on capital assets.
Budget 2020 Share of Defence Services Army Air Force Navy India Army Defence Budget
  • Note: Army includes Military Farms, Ex-Servicemen Contributory Heath Scheme (ECHS), Directorate General Quality Assurance (DGQA), Rashtriya Rifles, and National Cadet Corps (NCC). Navy includes Joint Staff.
Download PDF
December 2022
MTWTFSS
 1234
567891011
12131415161718
19202122232425
262728293031 
Categories