The allocation for defence in this year’s Budget saw a modest hike at ₹2.95 lakh crore, excluding pensions, raising questions if any major new acquisitions can be made this year. Meanwhile, defence pensions have for the first time crossed the ₹1,00,000 crore mark and even surpassed the quantum of capital allocation. Compared to 2017-18, this year’s allocation represents a 7.81% increase over the Budget estimate of ₹2.74 lakh crore and 5.91% increase over the revised estimate of ₹2.79 lakh crore. Of the overall allocation, ₹1,95,947 crore was the revenue component while ₹99,563 crore was the capital allocation. This year’s defence allocation accounts for 12.1% of the total Central government expenditure.

Source: The Hindu February 01, 2018 11:37 UTC