New Delhi | Jagran Business Desk: Looking at the double-threat that the country is facing from China and Pakistan, the government on Saturday announced that it has decided to hike the defence budget by 6 per cent from Rs 3.18 lakh crore to Rs 3.37 lakh crore. With defence pensions, the total budget would now go upto Rs 4.7 lakh crore.
"National security has always been the top priority of the government," said Finance Minister Nirmala Sitharaman while delivering the budget speech in the Parliament.
Here are key points you need to know about defence budget 2020:
* The defence pension budget goes up to Rs 1.33 lakh crore from Rs 1.17 lakh crore allocated last year.
* The hike in defence pension budget is more than the hike given in revenue and capital funds for defence.
* For modernisation and buying new weapon systems, defence forces allocated Rs 1,10,734 crore which is Rs 10, 340 more than what was provided in last year’s budget.
In its previous budget, the government had allocated Rs 3.18 lakh to the defence sector, the amount that was set aside in the interim budget in February. The allocation was an increase of 6.87 per cent that was around 1.6 per cent of the GDP. The government had also exempted the import of defence equipments not manufactured in India from custom duty.
Under the capital outlay, the government had given Rs 29,447 crore to the Indian Army while the Indian Air Force got an allocation of Rs 39,302 crore. The Indian Navy, on the other hand, was given an allocation of Rs 23,156 crore.
Out of the total allocation, the government had set aside Rs 1,08,248 crore for capital outlay to purchase new weapons, platforms and military hardware. The revenue expenditure which includes expenses on payment of salaries and maintenance of establishments was pegged at Rs 2,10,682 crore as against Rs 1,88,118 crore for 2018-19.
However, it did not include Rs 1,12,079 crore that was set aside separately for payment of pensions.
Posted By: Aalok Sensharma