MoD | Defence Expenditure as part of GDP

GDP
GDP -IndianBureaucracy

PIB News Update: Raksha Rajya Mantri Shri Shripad Naik has informed that As per the table below, Defence Expenditure is increasing every year in absolute terms implying higher spending.

       (Rs. in crore)

Year Defence Budget (BE) GDP Def. Exp % of GDP
2016-17 3,40,921.98 153,62,386 (2nd RE)                 2.22
2017-18 3,59,854.12 170,95,005 (1st RE)                 2.11
2018-19 4,04,364.71 1,90,10,164 (PE)                 2.13
2019-20 4,31,010.79 2,04,42,233(RE)

Note:

  • GDP figures from FY 2015-16 to 2018-19 are as per Economic Survey   2019-20 (Vol-2) – Table 1.6-Components of GDP at Current Prices
  • GDP figures for 2019-20 (RE) and 2020-21(BE) are as per Budget at a Glance (2020-21)
  • BE= Budget Estimates, RE=Revised Estimates, PE = Provisional Estimates

It may be seen from above data 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. In BE 2019-20, total Defence Budget (including Miscellaneous and Pensions) is Rs. 4,31,010.79 Crore, for the year 2019-20, which is 15.47% of total Central Government Expenditure. In BE 2019-20, Capital Budget of Ministry of Defence is approximately 31.97% of the total capital expenditure of the Central Government Expenditure.

The expenditure on operations/ maintenance and Defence Infrastructure has been maintained optimally.

Details of Capital Budget which includes expenditure on modernization and equipment for the last three years including the current year are as follows:-

 (Rs. in Crore)

Year Budget Estimates Expenditure
2016-17* 86,340.00 86,370.92
2017-18 86,488.01 90,438.39
2018-19 93,9821.13 95,229.06
2019-20 1,03,394.31 91,862.97#

*includes figures of Seven Departments which were shifted to MoD(Civil)

# Expenditure is upto January, 2020.

 

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