Military budget of India

2022-11-27T10:10:20Z

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[[File:INS Vikramaditya - 02.jpg|thumb|Indian Navy [[carrier battle group]] in transit led by aircraft carrier {{INS|Vikramaditya}}.|270x270px]]
The military budget or defence budget of [[India]] is the portion of the overall budget of [[Union budget of India]] that is allocated for the funding of the [[Indian Armed Forces]]. The military budget finances employee salaries and training costs, maintenance of equipment and facilities, support of new or ongoing operations, and development and procurement of new technologies, weapons, equipment, and vehicles.<ref>{{Cite journal|last=Navlakha|first=Gautam|date=1999|title=Defence Spending: Cost of Fighting Imaginary Enemies|url=https://www.jstor.org/stable/4407922|journal=Economic and Political Weekly|volume=34|issue=19|pages=1085–1088|issn=0012-9976}}</ref>

The [[Indian Army]] accounts for more than half of the total defence budget of India, with most of the expenditure going to the maintenance of cantonments, salaries and pensions, instead of critical arms and ammunition.<ref>{{Cite web|title=Defence Manufacturing in India|url=https://www.investindia.gov.in/sector/defence-manufacturing|url-status=live|archive-url=https://web.archive.org/web/20190103071510/https://www.investindia.gov.in/sector/defence-manufacturing|archive-date=3 January 2019|access-date=2021-07-09|website=www.investindia.gov.in|language=en}}</ref>

== Overview ==
India's defence budget includes allocation for the three defence services, army, navy and air force. It also includes allocation for the ordnance factories, research and development, and capital outlay. Additionally there are civil defence expenditures such as pensions. Unofficial expenditure includes expenses for four of the six [[Central Armed Police Forces]] responsible for border security. Space and atomic energy is funded separately.{{Sfn|Behera|2015|p=236-238}}

{| class="wikitable"
|+India's official and non-official defence allocation{{Sfn|Behera|2015|p=236-238}}
!Official/ Unofficial
! colspan="2" |Category/ Demand for Grants (DFGs)
!DCE/DSE
|-
| rowspan="2" |Unofficial
| colspan="2" |MoD (Canteen Store Department, MOD Secretariat, [[Indian Coast Guard|Coast Guard]], [[Jammu and Kashmir Light Infantry|J&K Light Infantry]])
| rowspan="2" |Defence Civil (DCE)
|-
| colspan="2" |Pensions and other benefits
|-
| rowspan="6" |Official Defence Budget
| rowspan="5" |Running/ Operating Expenses
|Army (including [[National Cadet Corps (India)|National Cadet Corps]], Director General Quality Assurance, [[Military Farms Service|Military Farms]] and Ex-Servicemen Contributory Health Scheme)
| rowspan="6" |Defence Services (DSE)
|-
|Navy (Joint Staff)
|-
|Air Force
|-
|[[Ordnance Factories|Defence Ordnance Factories]]
|-
|[[Defence Research and Development Organisation|Defence Research and Development]]
|-
|Capital expense
|Capital outlay (Capital expenditure of all services including NCC, Ordnance Factories and DGQA)
|-
|Unofficial
| colspan="3" |[[Border Roads Organisation]], [[Assam Rifles]], [[Border Security Force]], [[Indo-Tibetan Border Police]], [[Sashastra Seema Bal]], Border Management, CAPF construction, Border Outposts
|}

==Expenditures==
{{Pie chart
| other = yes
|caption=Share of defence services in defence budget in 2020-21<ref>{{cite news |last1=Behera |first1=Laxman Kumar |title=India's Defence Budget 2020-21 |url=https://idsa.in/issuebrief/india-def-budget-2020-21-lkbehera-040220 |access-date=13 February 2021 |work=MP-IDSA |date=4 February 2021}}</ref>|radius=100|thumb=right
| label1 = Air Force
| value1 = 23.0
| color1 = silver
| label2 = Army
| value2 = 56.0
| color2 = #008
| label3 = Navy
| value3 = 15.0
| color3 = #08f
| label4 = DRDO
| value4 = 6.0
| color4 = #02f
}}[[File:India military expenditure.png|thumb|306x306px|India's military expenditure (in billion $) and as % of GDP, 1985 to 2018. (Data via World Bank and [[Stockholm International Peace Research Institute|SIPRI]])]]
=== 2017–18 ===
[[Ministry of Finance (India)|Union Minister for Finance]] allocated {{INRConvert|359000|c|year=2017|lk=on}} of the [[2017 Union budget of India]] for development in the Indian armed forces, marking a raise of around 7% from the previous fiscal year.<ref>{{cite web|last=Behera|first=Laxman K|date=February 3, 2017|title=India's Defence Budget 2017-18:An Analysis|url=http://www.idsa.in/issuebrief/india-defence-budget-2017-18_lkbehera_030217|access-date=May 8, 2017|website=Institute for Defence Studies and Analyses|publisher=IDSA}}</ref><ref>{{Cite news|date=2017-02-01|title=India's defence budget hiked 10pc to INR 2.74 trillion|language=en|newspaper=Dawn|agency=Reuters|url=http://www.dawn.com/news/1312044/indias-defence-budget-hiked-10pc-to-inr-274-trillion|access-date=2017-02-01}}</ref>

=== 2018–19 ===
In presenting the Defence Budget of 2018-19 Finance Minister allocated ₹4,04,365 crore (US$ 63 billion) for the [[Ministry of Defence (India)|Ministry of Defence]] (MOD).<ref>{{cite web|last=Gurung|first=Shaurya Karanbir|date=1 February 2018|title=Budget 2018: Defence sector gets a boost by 7.81%|url=https://economictimes.indiatimes.com/news/defence/budget-2018-defence-sector-gets-a-boost-by-7-81/articleshow/62746419.cms|access-date=26 February 2018|website=Economic Times}}</ref> This translates into an increase of 5.66% over 2017-18 defence budget.

=== 2019–20 ===
As 2019 was an election year the [[National Democratic Alliance|NDA]] government presented an interim budget in place of a regular budget as per the general practice. In the interim budget an allocation of ₹4,31,011 crores (US$61.573 billion) was made.<ref>{{Cite web|last=Behera|first=Laxman Kumar|date=8 July 2019|title=India's Defence Budget 2019-20|url=https://idsa.in/issuebrief/indias-defence-budget-2019-20-lkbehera-080719|access-date=2020-02-14|website=|publisher=MP Institute for Defence Studies and Analyses}}</ref> On its re-election the NDA government kept the military budget unchanged. However the actual expenditure exceeded the estimated amount and final spending of defence for 2019-20 stood at ₹4,48,820 crores (US$62.71 Billion).<ref name=":0">{{Cite web|last=Behera|first=Laxman Kumar|date=4 February 2020|title=India's Defence Budget 2020-21|url=https://idsa.in/issuebrief/india-def-budget-2020-21-lkbehera-040220|access-date=2020-02-14|publisher=MP Institute for Defence Studies and Analyses}}</ref> So there was an increase of around 10% with respect to previous budget.

=== 2020–21 ===
The allocation for defence during the fiscal year 2020-21 stood at (US$73.86 Billion).<ref name=":0" /> This amounted to an increase of nearly 9%.

=== 2022-23===

The allocation for defence during the fiscal year 2022 -23 stood at 76.88 billion dollar, making it the third highest in the world after USA and China.<ref>{{cite web|url=https://www.sipri.org/media/press-release/2022/world-military-expenditure-passes-2-trillion-first-time |title=World military expenditure passes $2 trillion for first time | website=[[Stockholm International Peace Research Institute]]}}</ref>

===Spending (% of GDP)===
{| class="wikitable"
|-
! Year
! Ruling coalition
! Expenditure (%)
! Change
|-
|2022
| rowspan="9" |{{center|[[National Democratic Alliance|NDA]]}}
|
|
|-
|2021
|
|
|-
|2020
|2.88
|0.36{{increase}}
|-
|2019
|2.52
|0.10{{increase}}
|-
|2018
|2.42
|0.09{{decrease}}
|-
|2017
|2.51
|0.00
|-
|2016
|2.51
| 0.10{{increase}}
|-
|2015
|2.41
| 0.09{{decrease}}
|-
| 2014
| 2.50
|0.03{{increase}}
|-
| 2013
| rowspan="7" |{{center|[[United Progressive Alliance|UPA]]}}
| 2.47
|0.07{{decrease}}
|-
| 2012
| 2.54
| 0.11{{decrease}}
|-
| 2011
| 2.65
| 0.06{{decrease}}
|-
| 2010
| 2.71
|0.18{{decrease}}
|-
| 2009
| 2.89
|0.34{{increase}}
|-
|2008
|2.55
|0.21{{increase}}
|-
|2007
|2.34
|0.18{{decrease}}
|-
|}
The above statistics were collected by [[World Bank]] up to 2018.<ref>{{Cite web|title=Military expenditure (% of GDP) - India {{!}} Data|url=https://data.worldbank.org/indicator/MS.MIL.XPND.GD.ZS?locations=IN|access-date=2020-06-22|website=data.worldbank.org}}</ref>

===Capital Acquisition===
{| class="wikitable"
|-
! Armed force
! BE 2013-14 (₹ in Cr)
! RE 2013-14 (₹ in Cr)
! Under/over spending (₹ in Cr)
! Under/over spending (%)
! Interim 2014-15 (₹ in Cr)
! % Growth of interim 2014-15 over BE 2013-14
|-
! Army
| 23,423.23
| 10,871.22
| 2,525.82
| 18.95
| 20,920.20
| 56.83{{increase}}
|-
! Navy
| 19,972.78
| 19,234.31
| 3,614.47
| 15.39
| 23,020.86
| 1.95{{decrease}}
|-
! Air Force
| 37,048.06
| 36,016.54
| 1,031.52
| 2.78
| 31,817.89
| 14.12{{decrease}}
|-
! Total
! 73,853.88
! 66,682.07
! 7,171.81
! 9.71
! 705,738.95
! 2.55{{increase}}
|-
|}
The above data was published by the [[Institute for Defence Studies and Analyses]].<ref>{{cite web|last=Behera|first=Laxman Kumar|date=23 February 2014|title=India's Interim Defence Budget 2014-15: An Appraisal|url=http://idsa.in/idsacomments/IndiasInterimDefenceBudget2014-15_lkbehera_230214|access-date=20 July 2014|publisher=MP Institute for Defence Studies and Analyses}}</ref>

==See also==
*[[Union budget of India]]
*[[Railway budget of India]]

==References==
{{Reflist}}

=== Bibliography ===
* {{Cite book|last=Behera|first=Laxman Kumar|url=https://books.google.com/books?id=9xG4CwAAQBAJ|title=Handbook of Indian Defence Policy: Themes, Structures and Doctrines|publisher=Routledge|year=2015|isbn=9781317380092|editor-last=Pant|editor-first=Harsh V.|chapter=15: Changing contours of Indian defence expenditure|via=Google Books}}

== Further reading ==

=== Books ===
* {{Cite book|last=Ghosh|first=Amiya Kumar|title=India's Defence Budget and Expenditure Management in a Wider Context|publisher=Lancer|year=1996|isbn=9781897829264|location=New Delhi}}
* {{Cite book|last1=Cohen|first1=Stephen P.|url=https://books.google.com/books?id=6f2opVxRGDcC|title=Arming without Aiming: India's Military Modernization|last2=Dasgupta|first2=Sunil|publisher=Brookings Institution Press|year=2013|isbn=9780815724926}}

=== Reports ===

* {{Citation|last=Sethi|first=Sanjay|title=Performance Measurement: A Model for the Department of Defence Production|date=2014|url=https://www.claws.in/static/MP46_Performance-Measurement-A-Model-for-the-Department-of-Defence-Production.pdf|work=Centre for Land Warfare Studies, New Delhi. Manekshaw Paper No. 46|volume=|publisher=KW Publishers}}

=== Journals ===
* {{Cite journal|last=Navlakha|first=Gautam|date=1999|title=Defence Spending: Cost of Fighting Imaginary Enemies|url=https://www.jstor.org/stable/4407922|journal=Economic and Political Weekly|volume=34|issue=19|pages=1085–1088|issn=0012-9976}}

=== News ===
* {{Cite news|date=24 March 2017|title=Defence Procurement Policy|publisher=Press Information Bureau, Government of India|url=https://pib.gov.in/newsite/PrintRelease.aspx?relid=159864|url-status=live|access-date=23 March 2021}}
* {{Cite news|last=Philip|first=Snehesh Alex|date=9 August 2020|title=Artillery guns, assault rifles, AFVs — Here's a list of 101 items MoD won't import in future|work=ThePrint|url=https://theprint.in/defence/artillery-guns-assault-rifles-afvs-heres-a-list-of-101-items-mod-wont-import-in-future/478066/|url-status=live|access-date=23 March 2021}}

{{Use dmy dates|date=October 2019}}
{{Use British English|date=February 2015}}

[[Category:Ministry of Defence (India)]]
[[Category:Union budgets of India]]
[[Category:Military budgets|India]]

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Military budget of India