Def budget as percentage of GDP may appear to be decreasing due to high economic growth: Govt

The government today said the defence budget as a percentage of the Gross Domestic Product may appear to be decreasing due to an increasing trend of GDP growth of the country.

In the Union budget, the government had allocated Rs 2.95 lakh crore to defence forces which is estimated to be around 1.58 per cent of the country's GDP. A separate allocation of Rs 1.08 lakh crore was set aside for defence pensions.

This defence budget, in terms of percentage of the GDP, was lowest since 1962.

Replying to a question in Rajya Sabha, Minister of State for Defence Subhash Bhamre said the defence budget, including allocation for miscellaneous expenditure and pensions, was Rs 4.04 lakh crore, which is 16.6 per cent of total expenditure of government for the year 2018-
"Further, capital budget of ministry of Defence for 2018-19 is approximately 33 per cent of the total capital expenditure of the central government," Bhamre said
He said, "Defence budget as a percentage of GDP may appear to be decreasing due to increasing trend in the growth of GDP."