The modest 6.35 per cent rise in defence allocations – from Rs 405,193 crore in last year’s revised estimates, to Rs 431,011 crore in Friday’s Budget – presents an even more worrying picture when the budget is disaggregated.
A Business Standard analysis of the defence budget in a three-year window indicates that most of this scanty rise is accounted for by the revenue heads of manpower and running expenses. Meanwhile, the important capital budget component, which funds equipment modernisation, has grown significantly slower.
From the baseline of the 2016-17 budget to the present, three annual increments have raised spending on the three