Budget 2019: Modest 6.35% hike in defence budget, govt talks up OROP

With larger allocations to the agricultural and social sectors in an election year, the defence Budget plumbed the lowest levels since 1962 — the year when an ill-equipped Indian Army was roundly defeated by China. 

Including money allocated to defence pensions and the defence ministry, the defence allocation for 2019-20 rose to Rs 4.31 trillion, just 6.35 per cent more than the revised estimates for 2018-19. This will be insufficient to cover even cost inflation and foreign exchange depreciation during the year. 

The defence allocation for the coming year will account for 15.5 per cent of the central government’s expenditure,