Union Budget 2017 brings good news to retired servicemen
The money allocated for defence pensions is Rs 85,737 crore, a year-on-year hike of 4.13%.
New Delhi: Of the total outlay of Rs 21,46,736 crore in the Union Budget announced on Wednesday, Rs 2,74,114.12 crore has been set aside for defence, accounting for 12.77% of the total central government expenditure for 2017-18. Overall, there has been a small increase of 6.2 per cent for defence in 2017-18 from the current Rs 2,58,589 crore.
“For defence expenditure, excluding pensions, I have provided a sum of Rs 2,74,114 crore including Rs 86,488 crore for defence capital,” Mr Jaitley said while delivering his Budget speech. The money allocated for defence pensions is Rs 85,737 crore, a year-on-year hike of 4.13%.
But what has generated a lackluster mood in the defence sector is the capital outlay which got a hike of 10.05 per cent, from Rs 78,586 crore to Rs 86,488 crore in 2017-18. India is in the middle of a defence modernisation programme with requirements of weapons, aircraft, warships and other military equipment for the Army, navy and air force. In that backdrop, an increase of Rs 7,902 crore to cover the country’s modernisation drive is being seen by experts as “too meager”.
Ankur Gupta, vice-president (Aerospace and Defence) at Ernst & Young India said: “The capital budget has increased by approximately 10 per cent when compared to the budgetary estimates, but if we consider the impact of the depreciating Rupee and the imposition of customs duty on all defence imports, this increase may not suffice to meet the modernisation requirements.”
However, Puneet Kaura, MD and CEO Samtel Avionics, said: “The increased allocation towards capital expenditure in Defence Budget is a welcome move. It shows the government’s commitment towards indigenisation. The increased spend by the government on capex will lead to trickle down effect and more work for SMEs. It will further help in defence and fleet modernisation. It will also boost Make in India in defence.”