- The allocation for capital expenditure in the defence budget saw an increase of Rs. 21,326 crore, or 18.75%, from the Budget estimates of 2020-21.
- This is the highest increase in capital outlay for defence in the past 15 years.
- Budget data also show that the armed forces got an additional allocation of Rs. 20,776 crore under capital expenditure in 2020-21 for emergency procurements in the face of massive mobilisation along the Line of Actual Control (LAC).
- The total allocation for defence in the Union Budget at Rs. 4.78 lakh crore, including for defence pensions, saw a marginal increase of 48% from the Rs. 4.71 lakh crore last year.
- However, data show that defence pensions have gone down significantly from the Budget estimates of 2020-21.
- The 15th Finance Commission observed it its report that the expenditure on defence services as a proportion of GDP declined from 2% in 2011-12 to 1.5% in 2018-19 and to 4% in 2020-21.
https://www.thehindu.com/todays-paper/tp-miscellaneous/tp-others/lac-stand-off-factored-in-for-defence-outlay/article33722668.ece
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