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Union Budget 2021: FM allocates Rs 4.78 lakh crores for defence ministry

The total budget includes an allocation of Rs 1.15 lakh crore for payment of pensions and Rs 1.35 lakh crore has been set aside for capital expenditure.

Union Budget 2021: FM allocates Rs 4.78 lakh crores for defence ministry

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  1 Feb 2021 2:09 PM GMT

Union Finance Minister Nirmala Sitharaman on Monday allocated Rs 4.78 lakh crores for the defence ministry. The total amount includes capital expenditure worth Rs 1.35 lakh crore.

The government increased the capital outlay for the armed forces by nearly 19 percent while allocating a total of Rs 4.78 lakh crore for defence budget for 2021-22 as compared to Rs 4.71 lakh crore last year.

The amount of Rs 1.35 lakh crore has been set aside for capital expenditure that includes purchasing new weapons, aircraft, warships and other military hardware, according to the Union Budget presented in the Lok Sabha by Minister Sitharaman.

Defence Minister Rajnath Singh took to Twitter to thank Prime Minister Narendra Modi and Sitharaman for increasing the defence budget. He wrote, "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."

The defence minister also praised Sitharaman's budget proposal to set up 100 new Sainik schools.

The total outlay of Rs 4.78 lakh crore includes a provision of Rs 1.15 lakh crore for payment of pensions. The allocation for payment of pension has come down from Rs 1.33 lakh crore from the previous budget.

The defence minister praised Budget 2021-22 and said that it has been based on six pillars of good governance.

"Special attention has been paid to economic reforms, employment generation, capital formation and creating infrastructure in India. Based on 6 pillars of good governance this Budget will usher India into a new era of inclusive growth and prosperity," Singh said.

During her budget speech, Sitharaman said that post-pandemic, a new world order seems to be emerging and India will have a leading role therein.

Commenting on as to why the finance minister didn't mention the defence budget allocation during her speech, NITI Aayog Vice Chairman Rajiv Kumar said that It's (Defence) was not a part of the speech but it's there in the Budget).

Kumar said that the FM has focussed on six major pillars in the Budget. Defence expenditure is important but less connected to our progress and the Budget 2021-22 is focussed on accelerating pace of our progress, Kumar said.

The finance minister presented the Union Budget for 2021-22 today, February 1.


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