Budget 2019: Govt allots Rs 4.3 trn for defence, down to nearly 2% of GDP

Defence spending is falling in percentage terms even though all military purchases are now subject to GST

Finance Minister Nirmala Sitharaman has allocated Rs 4.31 trillion for defence spending (including military pensions of Rs 1.12 trillion), the same as in the February 1 interim Budget. As a proportion of gross domestic product (GDP), however, the allocation is inching steadily lower, towards the 2 per cent mark.

In 2014-15, defence allocations, including pensions, accounted for 17.1 per cent of the central government’s spending, or about 2.28 per cent of GDP. This year, the Defence Budget will comprise 15.5 per cent of government expenditure and only 2.04 per cent of GDP.

In countries like India that face significant security