Defense Minister Rajnath Singh thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for increasing the defense budget to Rs 4.78 lakh crore for FY 2021-22 and described it as the biggest increase in capital outlay for defece in 15 years.
Finance Minister Nirmala Sitharaman on Monday announced an allocation of Rs 4,78,195.62 crore for the defence sector for 2021-22 as against Rs 4,71,378 crore (including defence pension) last year. Excluding pension, it is estimated at Rs 3.62 lakh crore from Rs 3.37 lakh crore in the previous year.
The Modernization Fund for the Armed Forces have increased from Rs 1,13,734 in the previous year to Rs 1,35,060 crore for FY 2021-22. According to the information, China’s annual expenditure on defence is about $ 261 billion i.e. about 19 Lakh crores. At the same time, India spends only 71 billion dollars i.e. about 5 lakh crore rupees on the army.