1. Ajay Sukhla Defence Budget

SERVICE-WISE BUDGETARY ALLOCATION (Rs. Cr)

Service ARMY NAVY AIR FORCE
Revenue 1,21,027 18494 24803
Capital 25175 19348 33556
Total 1,46,202 37842 58359
Revenue-to-capital ratio 1/3/1900 10:18:00 AM 48:52:00 42:58:00

DEFENCE ALLOCATIONS

2015-16(Actual) 2016-17(BE) 2016-17(RE) 2017-18(BE)
Ministry of Defence (MoD)* 11828 13060 15612 14852
Revenue budget (Army)*' 1,00,175 1,10,314 1,14,935 1,21,027
Revenue budget (Navy) 14992 17425 17814 18494
Revenu e budget (IAF) 21021 23656 23817 24803
Capital spend(Anny) 20602 26791 23709 25175
Capital spend(Navy) 19875 22000 19596 19348
Capital spen d (IAF) 31198 29795 28210 33556
Total capital budget€€ 79846 86189 79207 86488
Ordnance Factory Board (revenue) 422 1218 1432 1184
DRDO(revenue) 5798 6728 6663 7266
Pensions 60238 82332 85626 85740
Total defence allocation 2,94,320 3,40,922 3,45,106 3,59,8 54
Total government spending 17,90,783 19,78,060 20,14,407 21,46,7 35
Share of government spend (%) 16.4 17.2 17.1 16.8
Total GDP 1,36,75,331 1,50,65,010 1,50,75,429 1,68,47,455
Share of G DP (%) 2.15 2.26 2.29 2.14

2. Budget Allocation

INDIA'S DEFENCE BUDGET 2016-17

MoD Resource Allocation

Earlier Format New Format
Demand no. 20 - Ministry of Defence (Civil) Demand no. 20 - Ministry of Defence (Miscellaneous) (Revenue and Capital)
Demand no. 21 - Defence Pensions Demand no. 21 - Defence Pensions
Demand no. 22 - Defence Services, Army (Revenue) Demand no. 22 - Defence Services (Revenue)
Demand no. 23 - Defence Services, Navy (Revenue) Demand no. 23 - Capital Outlay on Defence Services
Demand no. 24 - Defence Services, Air Force (Revenue) Demand no. 23 - Capital Outlay on Defence Services
Demand no. 25 - Defence Services, Ordnance Factories (Revenue)  Demand no. 23 - Capital Outlay on Defence Services
Demand no. 26 - Defence Services, Research and Development (Revenue) Demand no. 23 - Capital Outlay on Defence Services
Demand no. 27 - Capital Outlay on Defence Services Demand no. 23 - Capital Outlay on Defence Services

Budget and Revised Estimate for 2015-16 and 2016-17 (Old Format)

Year Revenue Expenditure (Rs. in crore) Capital Expenditure (Rs. in crore) Total (Rs. in crore)
2015-16 (BE) 152139 94588 246727
2015-16 (RE) 143236 81400 224636
2016-17 (BE) 162759 86340 249099

Comparative Statistics of Defence Budget: 2015-16 & 2016-17 (Old Format)

Defence Budget (Rs. in Crore) 246727 249099
Growth of Defence Budget (%) 7.74 0.96
Revenue Expenditure (Rs. in Crore) 152139 162759
Growth of Revenue Expenditure (%) 13.2 6.98
Share of Revenue Expenditure in Defence Budget (%) 61.7 65.3
Capital Expenditure (Rs. in Crore) 94588 86340
Growth of Capital Expenditure (%) -8.7
Share of Capital Expenditure in Defence Budget (%) 38.3 34.7
Capital Acquisition (Rs. in Crore) 77406.69 70413.92*
Growth of Capital Acquisition (%) 3 -9.4
Share of Defence Budget in GDP (%) 1.82 1.65
Share of Defence Budget in Central  13.9 12.6
Government Expenditure (%) 13.9 12.6
MoD’s Budget (Rs. in Crore) 310079.6 340921.98
Growth in MoD’s Budget (%) 8.72 9.95
Share of MoD Budget in GDP (%) 2.29 2.26

Capital Acquisition: Army (Rs. in Crore)

Product 2015-16(BE) 2015-16(RE) 2016-17(BE)  % Increase in 2016-17(BE) over 2015-16 (BE) 
Aircraft & Aero-Engine 2365.4 2015.5 1565.9 -33.8
Heavy and Medium Vehicle 1783.8 1900.9 3411.7 91.3
Other Equipment 177335.2 13863.4 16173.4 -6.7
Rolling Stock 364 122.8 282.8 -22.3
Rashtriya Rifles 91 95 101.5 11.6
Total Acquisition 21939.4 17997.6 21535.3 -1.8

Capital Acquisition, Navy (Rs. in Crore)

Product 2015-16 (BE) 2015-16 (RE) 2016-17 (BE) % Increase in 2016-17 (BE) over 2015-16 (BE) 
Aircraft & Aero-Engine 3466.08 4100 3805 9.8
Heavy and Medium Vehicle 11 35 35 218.2
Other Equipment 2558.64 2400 2600 1.6
Joint Staff 922.34 707.81 958.87 4
Naval Fleet 16049.87 10681 12467 -22.3
Naval Dockyard 1275.31 1177.38 1456.77 14.2
Total Acquisition 24283.24 19101.19 21322.64 -12.2

Capital Acquisition, Air Force (Rs. in Crore)

Product 2015-16(BE) 2015-16(RE) 2016-17(BE)  % Increase in 2016-17(BE) over 2015-16 (BE) 
Aircraft & Aero-Engine 18866.01 18392.1 17833.45 -5.5
Heavy and Medium Vehicle 233.42 89.45 127.35 -45.4
Other Equipment 12382.09 10161.55 9595.22 -22.5
Total Acquisition 31481.52 28643.1 27566.02 -12.5

Underspending of Capital Acquisition Budget

Year BE (Rs. in Crore) Actual (Rs. in Crore) Underspending (Rs. in Crore) Underspending(%)
2012-13 66032 58769 7263 11
2013-14 73445 66850 6594 9
2014-15 75148 65582 9566 13
2015-16 77407 65742* 11665* 15*

INDIA'S DEFENCE BUDGET 2015-16

Budget and Revised Estimates for 2014-15 and 2015-16

Year Revenue Expenditure (Rs. in crore) Capital Expenditure (Rs. in crore) Total (Rs. in crore)
2014-15 (BE) 134412.1 94588 229000
2014-15 (RE) 140404.8 81965.2 222370
2015-16 (BE) 152139 94588 246727

Share of Committed Liabilities and New Schemes in Capital Acquisition Budget

Year Committed Liabilities (Rs. in Cr) Committed Liabilities(% of Total Acquisition Budget) New Schemes (Rs. in Cr) New Schemes(% of Total Acquisition Budget)
2013-14 (BE) 70489 96 2956 4
2014-15 (BE) 69746 93 5402 7

Comparative Statistics of Defence Budget: 2014-15 and 2015-16

2014-15 2015-16
Defence Budget (Rs. in Crore) 229000 246727
Growth of Defence Budget (%) 12.4 7.74
Revenue Expenditure (Rs. in Crore) 134412.05 152139
Growth of Revenue Expenditure (%) 14.9 13.2
Share of Revenue Expenditure in Defence Budget (%) 58.7 61.7
Capital Expenditure (Rs. in Crore) 94587.95 94588
Growth of Capital Expenditure (%) 9
Share of Capital Expenditure in Defence Budget (%) 41.3 38.3
Capital Acquisition (Rs. in Crore) 75148.03 77704*
Growth of Capital Acquisition (%) 2.3 3.4*
Share of Defence Budget in GDP (%) 1.81 1.75
Share of Defence Budget in Central Government Expenditure (%) 12.8 13.9

Finance Commission’s Projection for Defence Revenue Expenditure

Year  Growth (%)  Share of GDP (%)
2014-15 (BE) 134412  1.04
2015-16* 152558 13.5  1.04
2016-17* 173153 13.5  1.04
2017-18* 196529 13.5  1.04
2018-19* 223060 13.5  1.04
2019-20* 253173 13.5  1.04

 Army’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 2128 2323.6 2365.4 11.2
H&MV 2692.2 1783.6 1783.8 -33.7
Other Equipment 15591.9 12548.8 17335.2 11.2
Rolling Stock 275.1 60.7 364 32.3
Rashtriya Rifles 213.1 210.6 91 -57.3
Total Acquisition Budget 20900.2 16927.4 21939.4 5

Navy’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 3330.7 3310.7 3466.1 4.1
H&MV 34.3 8 11 -67.9
Other Equipment 4358.1 3696.9 2558.6 -41.3
Joint Staff 1028.9 714.8 922.3 -10.4
Naval Fleet 12576.1 9398.3 16049.9 27.6
Naval Dockyard 1612.9 661.3 1275.3 -20.9

Air Force’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 16271.4 21461.4 18866 15.9
H&MV 194.3 67 233.4 20.1
Other Equipment 15352.2 10289.5 12382.1 -19.3
Total Acquisition Budget 31817.9 31817.9 31481.5 -1.1

INDIA'S DEFENCE BUDGET 2014-15

Budget and Revised Estimates for 2014-15 and 2015-16

Year Revenue Expenditure (Rs. in crore) Capital Expenditure (Rs. in Crore) Total (Rs. in Crore)
2014-15 (BE) 134412.1 94588 229000
2014-15 (RE) 140404.8 81965.2 222370
2015-16 (BE) 152139 94588 246727

Comparative Statistics of Defence Budget: 2014-15 and 2015-16

Budget 2014-15 2015-16
Defence Budget (Rs. in Crore) 229000 246727
Growth of Defence Budget (%) 12.4 7.74
Revenue Expenditure (Rs. in Crore) 134412.05 152139
Growth of Revenue Expenditure (%) 14.9 13.2
Share of Revenue Expenditure in Defence Budget (%) 58.7 61.7
Capital Expenditure (Rs. in Crore) 94587.95 94588
Growth of Capital Expenditure (%) 9
Share of Capital Expenditure in Defence Budget (%) 41.3 38.3
Capital Acquisition (Rs. in Crore) 75148.03 77704*
Growth of Capital Acquisition (%) 2.3 3.4*
Share of Defence Budget in GDP (%) 1.81 1.75
Share of Defence Budget in Central Government Expenditure (%) 12.8

14th Finance Commission’s Projection for Defence Revenue Expenditure

Year  Revenue Expenditure(Rs. in Crore)  Growth (%) Share of GDP (%)
2014-15 (BE) 134412  1.04
2015-16* 152558 13.5  1.04
2016-17* 173153 13.5  1.04
2017-18* 196529 13.5  1.04
2018-19* 223060 13.5  1.04
2019-20* 253173 13.5  1.04

Army’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 2128 2323.6 2365.4 11.2
H&MV 2692.2 1783.6 1783.8 -33.7
Other Equipment 15591.9 12548.8 12548.8 11.2
Rolling Stock 275.1 60.7 364 32.3
Rashtriya Rifles 213.1 210.6 91 -57.3
Total Acquisition Budget 20900.2 16927.4 21939.4 5

Navy’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 3330.7 3310.7 3466.1 4.1
H&MV 34.3 8 11 -67.9
Other Equipment 4358.1 3696.9 2558.6 -41.3
Joint Staff 1028.9 714.8 922.3 -10.4
Naval Fleet 12576.1 9398.3 16049.9 27.6
Naval Dockyard 1612.9 661.3 1275.3 -20.9
Total Acquisition Budget 22940.9 17790.1 24283.2 5.9

Air Force’s Acquisition Budget

2014-15 (BE) (Rs in Cr) 2014-15 (RE) (Rs in Cr) 2015-16 (BE) (Rs in Cr) % Increase in 2015-16 (BE) over 2014-15 (BE)
Aircraft & Aero-Engine 16271.4 21461.4 18866 15.9
H&MV 194.3 67 233.4 20.1
Other Equipment 15352.2 10289.5 12382.1 -19.3
Total Acquisition Budget 31817.9 31817.9 31481.5 -1.1

Share of Committed Liabilities and New Schemes in Capital Acquisition Budget

Committed Liabilities (Rs. in Cr) Committed Liabilities (% of Total Acquisition Budget) New Schemes (Rs. in Cr) New Schemes(% of Total Acquisition Budget)
2013-14 (BE) 70489 96 2956 4
2014-15 (BE) 69746 93 5402 7

3. Defence Budget for Army, Navy, Air Force

DEFENCE BUDGET 2012-13

Service Percent Amount in Crores
Army 50 97302.54
Navy 19 37314.44
AirForce 25 48191.16
DRDO 6 10635.56
Ofs 135.13
2012-13-budget

DEFENCE BUDGET 2013-14

Service Percent Amount in Crores
Army 49 99707.8
Navy 18 36343.5
AirForce 28 57502.9
DRDO 5 10610.2
Ofs 508.7
2013-14-budget

DEFENCE BUDGET 2014-15

Service Percent Amount in Crores
Army 53 118231
Navy 17 37627
AirForce 24 54262
DRDO 5 11960
Ofs 1 1873
2014-15-budget

DEFENCE BUDGET 2015-16

Service Percent Amount in Crores
Army 53 130874
Navy 16 40529
AirForce 23 56658
DRDO 6 14358
Ofs 2 3644
2015-16-budget

DEFENCE BUDGET 2016-17

Service Percent Amount in Crores
Army 52 129580
Navy 16 39425
AirForce 22 53451
DRDO 5 13594
Ofs 5 13049
2016-17-budget
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