The defence budget for 2021-22 is still less than 2 percent of the Union budget. There were expectations of larger funds to prepare the Armed Forces for a possible conflict with China and a two-front war.
India spends one of the lowest on defence among the top six economies of the world as a percent of the GDP.
The Annual budget was presented in Parliament on February 01. This year everyone was waiting eagerly to hear the Finance Minister, since this budget was in the backdrop of the COVID pandemic and resultant slowdown of the economy. The Defence sector too was looking at major increase in the allocation in view of standoff against China in Eastern Ladakh. Finally, the figures are in the open domain and the fine print is being read intently. The FM did not make any mention of the amount of the Defence allocation though this was part of the budget documents released online. Total Rs 4.78 lakh crore allocated for defence, 19 percent increase in capital outlay.