Pakistan-China threat looms, no big bang for defence

India’s military modernisation will continue in its typical slow, haphazard manner without any big bangs, with defence outlay getting a modest 9.5% hike over last fiscal’s budgetary estimates and 6.3% over the revised ones.
The defence Budget was pegged at Rs 6.8 lakh crore ($79 billion), which works out to just 1.9% of the projected GDP for 2025-26, when at least 2.5% is needed to effectively deal with the

collusive threat from China and Pakistan

.

The crucial capital expenditure for military modernization or acquisitions as well as creation of infrastructure assets and R&D stood at Rs 1.8 lakh crore – barely 4.6% increase from last fiscal’s outlay. The defence ministry has returned Rs 12,500 crore as unspent under this head.

The Rs 3.1 lakh crore revenue outlay for day-to-day operational costs, sustenance and salaries of the over 14-lakh strong armed forces and defence civilians, in turn, continues to be almost double the capital one. The Rs 1.6 lakh crore pension bill for 34 lakh ex-servicemen and defence civilians rose 13.9%.