The budget is divided into three parts – revenue expenditure (revenue expenditure), capital outlay (capital expenditure) and pension. Capital expenditure is the most important part of it, because all the necessary expenses, including military modernization, arms procurement and horse trading are contained in it. When Finance Minister Nirmala Sitharaman stood in the Lok Sabha on Saturday to present the general budget for 2020-21, it was expected that she would talk about increasing expenditure on defense items, especially capital expenditure. But the figures that have come out do not raise much hope. The budget allocates Rs 5.33 lakh crore to the defense sector, with Rs 1.1 lakh crore towards capital expenditure. This amount was 1.08 lakh crore in the last financial year. That is, this time there has been a very slight increase.
A similar increase has been made in the entire defense budget. This year there has been an increase of just nine per cent. When the interim budget was presented in February last year, the defense sector was given Rs 4.31 lakh crore. Of this, Rs 1.13 lakh crore was released as a pension item. The interim defense budget was just 1.6 percent of total GDP, which was considered the lowest allocation since 1962 (when there was a war between India and China). For this reason, the heads of all the three organs of the army had proposed to increase the Interim budget, saying it was insufficient. It was expected that this would be increased in the July budget. But this was not done, while between February and July, there were major terrorist attacks like Pulwama in the country, in response to which the Indian Air Force also carried out an air strike in Balakot. 
The defense sector accounts for 2.1 percent of the global GDP. The neighboring country, Pakistan, shares 3.5 percent of its GDP, while China issues three percent of its GDP under this head. India is far behind all this. The budget figures are showing that this time only 1.6-1.7 percent of GDP will be spent on defense items. The defense sector has been allocated Rs 5.33 lakh crore, but out of this a large amount (2.1 lakh crore) has been released under the pension head. This simply means that only Rs 3.2 lakh crore has come in the share of capital expenditure and revenue expenditure. Obviously, ‘One Rank, One Pension’ has been given more importance in the defense budget and all other requirements have been ignored in a way. The request to increase capital expenditure has also been ignored. This is the situation when Vipin Rawat, as the army chief, requested to extend it last year.  
For now, it is too early to say that this will adversely affect the security system of the country, but this budget cannot be said to be pleasant in terms of defense. This may lead to many troubles in the coming days. This can have negative effects on defense deals and military modernization. Last year, HAL workers went on strike due to lack of money. Such a situation should not come again. This time the matter might have been made if the defense budget was kept at least two percent of the total GDP, given all the requirements. But it seems, this time too the thing kept getting made. 


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