The whole country is staring at the defense budget amid long-running tensions with China and Pakistani infiltration. The defense sector also has great expectations from the budget 2021-22. Actually, the coming years are going to be very important for the defense of our country. Let us know what are the expectations of the defense sector from this budget.
Finance Minister Nirmala Sitharaman will present this budget. With this budget of Nirmala Sitharaman, every sector is expecting big announcement.
Indeed, due to the Indian Army’s confrontation with the Chinese Army at Naku La in Sikkim and earlier on June 15 last year, violent clashes with Chinese troops in Galvan, the countrymen are quite conscious about defense. On the other hand, Pakistan is constantly engaged in infiltration at the border. In such a situation, the whole country is eyeing the announcements made by the government in the budget in the defense sector.
Expectations in defense sector from budget 2021-22
1-The government can increase the defense budget this time for the purchase of high-tech weapons to strengthen the security structure on the border and the army. Significantly, in the year 2020-21, India’s defense budget was 3.05 lakh crore.
2- For the pension of ex-servicemen, a budget of 133,825 crores was kept for the year 2020-21. 56% of the defense budget was kept for the Army, 23% for the Air Force, 15% for the Navy and 6% for the DRDO.
3-Last year, the government’s allocation to the Ministry of Defense was the highest among all ministries at 15.5% of the total budget expenditure.
4- India’s overall defense spending has seen an average growth rate of 9% in the last 10 years.
5-If the government is adamant on this trend, then this year at least the defense budget will exceed the figure of Rs 5 lakh crore.
6-However, in the context of military reforms and modernization, all eyes will be on the funds allocated for capital expenditure.
7- Indian Air Force is short of fighter aircraft, Air Force has told the government the requirement of 114 fighter aircraft. Along with this, the Army and Navy also have great expectations from this budget.
This was the lowest figure since the early 1960s. In fact, in the last few years, India’s defense budget has been declining in proportion to GDP. Military experts believe that India needs at least 2.5% of its GDP to build the necessary deterrent against China and Pakistan.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.