The allocation for Defence is eagerly awaited on every budget day. This year, against the backdrop of the security situation in the borders there was an anticipation of a substantial increase notwithstanding the economic pressures due to the pandemic. The allocation of Rs. 4,78,196 crores in 2021-22 as against a BE in 2020-21 of Rs. 4,71,378 crores, however represents a marginal increase of Rs. 6,818 crores.
A comparative analysis of the above allocation brings out an interesting reversal with a downward trend in pensions:
MOD(Civ) Defence Services Pension Total
2020-21 14,500 3,23,053 1,33,825 4,71,378
2021-22 15,257 3,47,089 1,15,850 4,78,196
The allocation for the Defence Services includes allocation for DRDO and Ordnance Factories. The Revenue component is Rs, 2,12,078 crores and capital component is Rs. 1,35,061 crores. The allocation for the Army, Navy and Air Force is Rs. 3,25,783 crores ( Rs. 2,02,832 crores for revenue and Rs. 1,22,951 crores for capital). In 2020-21 it was Rs. 3,02,201 crores, (Rs. 1,99,839 crores for revenue and Rs. 1,02,362 crores for capital). The overall increase of Rs. 23,582 crores consists of Rs. 20,589 crore in the capital head. The major share of Rs. 9,933 crore has been allocated to Air Force followed by Rs. 6,566 crore to Navy and Rs. 4090 crore for Army.
However, when we compare the allocations with the Revised Estimate figures the picture changes. RE 2020-21 is Rs 3,26,607 crores while BE 2021-22 is Rs. 3,25,783 crores where there is a decline of Rs 824 crores. In the capital head RE 2020-21 is Rs. 1,25,811 crores and BE 2021-22 is Rs. 1,22,951 crores, which means there is a decline of Rs.2,860 crore in the allocation on the capital account.