The finance ministry ordered an expenditure ceiling of 20 per cent on the military
Military spending, minus the payroll, would probably be cut by at least 20 per cent from the allocations for the financial year 2020-21 and possibly by as much as 40 per cent, said a senior Ministry of Defence (MoD) official on Tuesday.
Cutting 20 per cent would save the exchequer about Rs 40,000 crore, while the deeper 40 per cent cut would save as much as Rs 80,000 crore.
Addressing an audience of defence analysts in Delhi, the MoD official confirmed reports that the government had ordered the military to limit its first quarter (April-June) spending to 15-20 per cent
First Published: Apr 29 2020 | 2:48 AM IST