DEFENCE BUDGET
INDIA
The Union Budget for Financial Year 2022-23, presented by Finance Minister Nirmala Sitharaman on February 1, 2022 has displayed continued focus on ‘Atmanirbharta’ in manufacturing of weapon systems in India
The Defence Budget and Atmanirbharta Focus In order to realise the Prime Minister’s ‘Make in India’ initiative to achieve $5 trillion economy by 2024, defence has been identified as one of the prominent sectors
Photograph: PIB
By Air Vice Marshal Sanjay Bhatnagar (Retd) This year’s defence budget comes against the rather uneasy geopolitical situation prevailing in India’s neighborhood and globally. China’s People’s Liberation Army (PLA) stand-off at the Line of Actual Control (LAC) in Eastern Ladakh continues for the second year without resolution, despite series of high level talks. Pakistan continues its terrorist backed activities that are likely to get escalated in view of Taliban’s victory in Afghanistan. Also, tension in Ukraine region is brewing, nudging India to take a stand either in favour of Russia or the United States. These factors require higher level of preparedness of Indian armed forces that need to be optimally equipped with modern weapons, platforms and systems, in effect, demanding enhanced financial resources. At the same time, requirement to nurture the process of economic recovery post the pandemic, places a competing demand on fiscal resources and presents a steep economic challenge. Well, for reasons such as these, Indian defence budget has always been a fine exercise in the art of balancing.
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ISSUE 2 • 2022
The Union Budget for Financial Year 2022-23, presented by Finance Minister Nirmala Sitharaman on February 1, 2022 has displayed continued focus on the modernisation of the Indian armed forces and defence security infrastructure development, including the border road infrastructure. FACTS AND FIGURES The Union Budget has a total outlay of `39.45 lakh crore for FY 2022-23. Of this, 13.13 per cent amounting to `5.25 lakh crore have been earmarked for Defence. This is 9.82 per cent increment over the Budget Estimate (BE) of FY 2021-22 of `4.78 lakh crore. Out of this, Capital Budget earmarked is `1.52 lakh crore, Revenue Budget is `2.33 lakh crore and Pensions stands at `1.19 lakh crore. Of the Capital Budget, `32,015 crore is earmarked for the Indian Army, `47,591 crore for the Indian Navy and `55,587 crore for the Indian Air Force. 68 per cent of the capital pro-
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