After China escalated military tension at the Line of Actual Control (LAC), the Narendra Modi government spent Rs 20,776 crore on unbudgeted defence expenses, including emergency purchases of equipment for the military as the standoff with China in eastern Ladakh continues.
As per the information given by the government, it has allocated ₹1,13,734 for capital expenses in the 2020-21 budget. However, the revised estimates show that this has gone up to ₹1,34,510 crore during the period.
The reason for the rise in the budget was the emergency purchase that Indian military made due to India’s response to China’s provocations last year accounting to ₹20,776 crore.
Emergency purchases made last year include procurement of winter clothing from the US, ammunition from Russia and missiles from France.
Not since 1967, India and China held such aggressive posturing along the LAC, which involved the large-scale mobilisation of troops and equipment that resulted in the worst border clash between the two countries in over four decades at the Galwan valley.
In the budget presented by Finance Minister Nirmala Sitharaman today, the government has increased the defence budget by 7.34 per cent, excluding pensions.
But the important aspect of the budget is the increase in capital acquisition budget this year, which will be used for the purchase of new equipment, is pegged at around 18 per cent.
The outlay for modernisation has increased from ₹1,13,734 lakh crore last year to ₹1,35,060 crore. According to Defence Minister Rajnath Singh, an increase in the capital acquisition budget this year is the “highest” in 15 years.
“I especially thank PM & FM for increasing the defence budget to 4.78 lakh crore for FY 21-22, which includes capital expenditure worth ₹1.35 lakh crore. It is nearly 19 per cent increase in defence capital expenditure. This is highest ever increase in capital outlay for defence in 15 years,” the minister tweeted.
I specially thank PM& FM for increasing the defence budget to 4.78 lakh cr for FY21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly19 percent increase in Defence capital expenditure. This is highest ever increase in capital outlay for defence in 15yrs
— Rajnath Singh (@rajnathsingh) February 1, 2021
The total outlay for defence in the 2021 budget is pegged at ₹4,78,195 crore.
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