New Delhi: The government of India has kept Rs. 4,04,364.71 crore for defence budget including miscellaneous and pension, which is 16.6 percent of total Central Government expenditure for the year 2018-19. Further, Capital budget of Ministry of Defence for 2018-19 is approximately 33% of the total capital expenditure of the Central Government.
The Minister of State for defence Subhash Bhamre replying in the Rajya Sabha gave information in the allocation of defence budget. The allocated budgetary resources are optimally utilized towards meeting the operational requirements of the Armed Forces. Depending upon the allocated resources schemes are also reprioritized to ensure that urgent and critical capabilities are acquired without compromise of operational preparedness.
Defence Budget as a percentage of GDP may appear to be decreasing due to increasing trend in the growth of GDP. However, it is increasing in absolute terms implying higher spending.