Budget 2023 Wishlist: A handsome increase in the defence outlay?
Focus on the Atmanirbhar Bharat initiative in the defence manufacturing sector, reduction in dependency on imports and recent revision in the One Rank One Pension (OROP) may prompt the finance minister to increase the outlay.
FollowAs Finance Minister Nirmala Sitharaman gets ready to present her last full-Budget ahead of the 2024 general elections, experts believe that the government would make a handsome increase in the defence outlay in efforts to continue its push for defence infrastructure and indigenisation drive.
In 2022-23, the government had earmarked Rs 5.25 lakh crore for the defence sector, which included 31 per cent of salaries, 23 per cent of pensions and about 24 per cent allocated for weapons and equipment for the armed forces modernisation drive.
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In the last budget, the government had set aside 68 per cent of defence capital procurement for the domestic industry, standing at Rs 1.19 lakh crore. In 2021-22, it was 58 per cent.
Focus on the Atmanirbhar Bharat initiative in the defence manufacturing sector, reduction in dependency on imports and recent revision in the One Rank One Pension (OROP) may prompt the finance minister to increase the outlay.
It must be noted, as per SIPRI, India is the third-largest military spender across the globe, after the US and China.
Defence and strategic expert Major General Sudhakar Jee (Retd) said: "This year’s budget is likely to take a 'balanced approach' towards fiscal consolidation and economic growth. The finance minister may focus on capital expenditure towards infrastructure such as Railways, roads and defence projects and the expansion of the Centre’s production-linked incentives."
"Considering the emerging threats in the security environment obtaining within and outside the country, the government may have to increase the defence outlay ranging between 3.25 to 3.5 per cent of the gross domestic product (GDP) this time," Sudhakar Jee said.
Defence expert Major General SB Asthana (Retd) said: "Modernisation of the defence forces has to have a whole of nation approach given the security environment adequate funds must be found to modernise armed forces and crate capabilities in multi-domain warfare."
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