In the next budget, Rs 1.45tr is likely to be allocated to the armed forces. The armed forces are likely to be allocated Rs1.453 trillion in the budget for the next fiscal year, which would be about Rs 83 billion higher than the outgoing year’s allocation of Rs 1.37tr, an increase of almost 6%.
According to the media reports, defense spending is often scrutinized when allocating funds for various sectors at the time of the announcement of the annual budget.
Rs 1.45tr is likely to be allocated to the armed forces
Given the country’s average inflation rate of 11.3 percent, the defense budget was expected to increase by Rs. 136 billion. In this regard, the Armed Forces will get about Rs.53 billion.
The impact of defense spending is measured by the share of defense services in the total budget and as a percentage of GDP.
The share of total expenditure is determined by how much money is being devoted to the Armed Forces while calculating the defense budget as a percentage of GDP indicates its burden on the national economy.
According to these figures, the defense budget will account for about 16% of the total expenditure, which is similar to the current fiscal year ending; however, its share in terms of GDP is less than 2.54% of the current fiscal year. It will remain at 2.2% in the next financial year.
Defense sources said that a large part of the increase in funds would be allocated for most of the expenses related to the employees, salaries, and servicemen’s allowances.
Other parts of the budget are allocated to civil works that develop and improve military infrastructure, in addition to purchasing material assets, including local purchases of arms and ammunition and some imports and there are related costs while operating expenses also include a portion that covers transportation, rations, training, and medical expenses.
Sources said that the per capita expenditure is about Rs. 2.5 million per annum which is not even one-third of India’s expenditure.
Meanwhile, sources said that the Armed Forces and their welfare agencies paid Rs 935 billion in taxes in the current financial year.
They further said that Army saved and returned Rs500m to the government from Covid allocation and $16.9m against procurements.