For the first time in recent memory, there was no mention of defence in the budget for 2016-17 that Finance Minister Arun Jaitley presented in the Lok Sabha on Monday, despite allocating Rs. 2,49,099 crore, 12.59 percent of the total, for the sector.
An allocation of Rs 82,332.66 crore has been made for defence pensioners and this will also cover the payouts under the One Rank One Pension scheme.
The allocation marks around a 10 percent increase over the revised estimate of 2015-16, which was Rs. 2,24,636 crore.
Of the Rs 2,49,099 crore allocated, Rs 1,62,759 crore is for revenue expenditure which includes provision towards ordinance factories, R&D, DGQA, Rashtriya Rifles, Military Farms, ECHS and NCC.
Capital expenditure has been pegged at Rs 86,340 crore.
This is very intriguing, this is first time in 30 years we have not had one reference in finance minister’s speech. Usually there is a mention.C Uday Bhaskar, Defence Expert and Director of Society for Policy Study
The defence expert quoted figures from the previous year’s budget in this regard.
“In financial year 2015-16,the budget estimate was Rs 3,10,079 crore and the revised estimate was Rs 2,93,579 crore. So, almost Rs 16,000 crore was unutilised. Similarly, in the capital component, the budget estimate was Rs 98,175 crore and the revised estimate was Rs 85,112 crore, which means around Rs 13,000 crore was returned,” he said.
This may have been done to maintain the fiscal deficit. This will, however, have an adverse effect on modernisation of the forces.C Uday Bhaskar, Defence Expert and Director of Society for Policy Study
Bhaskar also felt that the increased allocation for the home ministry meant the government’s focus is shifting to internal security.
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