Capital outlay increased by nearly 19 per cent giving defence modernisation historic push

Union Budget 2021-22 has given a historic push to defence modernisation by increasing defence capital outlay by 18.75 per cent. The allocation under capital expenditure which relates to modernisation and infrastructure development of Armed Forces has been significantly increased.  The allocation under Capital of over 1 lakh 35 thousand 60 crore rupees for Financial Year 2021-22 represents an increase of 18.75 per cent over Financial Year 2020-21 and 30.62 per cent over Financial Year 2019-20. This is the highest ever increase in capital outlay of Defence in the last 15 years.

Defence allocation in the budget has been increased to over 4 lakh 78 thousand 195 crore rupees for the Financial Year 2021-22. Excluding Defence Pension, the total allocations for Defence Services and other organisations or Departments under Ministry of Defence for 2021-22 is over 3 lakh 62 thousand 345 crore rupees which is an increase of over 24 thousand 792 crore rupees over the Current Financial Year 2020-21.

Allocation under Non-Salary Revenue to meet operational requirement has been increased to over 54 thousand 624 crore rupees.  The Capital allocation for DRDO has been increased to over 11 thousand 375  crore rupees, an increase of 8 per cent over 2020-21 and 8.5 per cent over 2019-20.

Defence Minister Rajnath Singh thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for increasing the defence budget to 4.78 lakh crore for the Financial Year 2021-22. Mr Singh said special attention has been paid to economic reforms, employment generation, capital formation and creating infrastructure in India. He said, based on 6 pillars of good governance this Budget will usher India into a new era of inclusive growth and prosperity. The Minister expressed happiness that the Budget has proposed the opening of 100 new Sainik Schools in the country. These schools will be set up in partnership with States, Non-Governmental Organisations and private institutions.


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