New Delhi. 23 March 2020. Ministry of Finance has allocated Rs 1,13,734.00 crore for BE 2020-21 under Grant No. 20-Capital Outlay on Defence Services, which is an increase of Rs 10,339.69 crore over BE 2019-20 allocation and Rs 3,339.69 crore over RE 2019-20 allocation. In RE 2019-20 Rs 7,000 crore increase has been given reversing the trend of no allocation/reduced allocation at RE stage.
Based on allocations received, it is ensured that sufficient funds are available to meet the critical requirement of Services. Further, depending on the expenditure during the year, additional requirement of funds are sought at Supplementary/RE stages. The allocated funds are optimally and fully utilized towards operational activities and if required, schemes are reprioritized to ensure that urgent and critical capabilities are acquired without any compromise to operational preparedness.
Studies on assessment of Defence Budget are carried out by various think tanks and are available on their website.
Capital Budget of Ministry of Defence under Grant No 20: Capital Outlay on Defence Services also includes allocations for New Schemes and Infrastructure projects. In the Financial Year 2020-21, BE allocation of Ministry of Defence under Grant No. 20: Capital Outlay on Defence Services (i.e. Rs 1,13,734 crore) is 35.21% of Defence Services Estimates (i.e. Rs 3,23,053 crore).