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.    

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