Lok Sabha Question No. 491 (UNSTARRED), answered on 2019-02-06
Subject: Military Expenditure as Percentage of GDP
Ministry: DEFENCE
Asked by: B.V. NAYAK

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA

## UNSTARRED QUESTION NO.491

TO BE ANSWERED ON THE 6 TH  FEBRUARY, 2019

## MILITARY EXPENDITURE AS PERCENTAGE OF GDP

## 491. SHRI  B.V.NAIK:

Will the Minister of DEFENCE j{kk ea=h be pleased to state:

- (a) whether the military expenditure as percentage of Gross Domestic Product (GDP) has reduced over a period of time and if so, the details thereof and reasons therefor;
- (b) whether India is not spending proportionately on operations and maintenance of military equipment and development of defence infrastructure; and
- (c) if so, the reasons therefor along with the details of the funds allocated for Defence modernisation and equipments during the last three years?

## A    N    S    W    E    R

MINISTER OF STATE IN THE MINISTRY OF DEFENCE

(DR. SUBHASH BHAMRE)

j{kk jkT; ea=h

¼Mk . lqHkk'k Hkkejs½

(a) to (c): A statement is attached.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO    PARTS  (a)  TO  (c)  OF  LOK  SABHA UNSTARRED QUESTION NO. 491 FOR ANSWER ON 06.02.2019

As  per  the  table  below,  Defence  Expenditure  is  increasing  every  year  in absolute terms implying higher spending.

(Rs. in crore)

|                                                 | BE 2015-16   | BE 2016-17   | BE 2017-18   | BE 2018-19   |
|-------------------------------------------------|--------------|--------------|--------------|--------------|
| Grant no 19- MoD(Misc)                          | 8852.60      | 36,133.18#   | 14,852.22@   | 16,206.09    |
| Grant no 20- Defence Services Revenue           | 1,52,139.00  | 1,43,869.46  | 1,72,773.89  | 1,85,323.19  |
| Grant no 21- Capital Outlay on Defence Services | 94,588.00    | 78,586.68    | 86,488.01    | 93,982.13    |
| Grant no 22- Defence Pensions                   | 54,500.00    | 82,332.66    | 85,740.00    | 1,08,853.30  |
| Grand Total                                     | 3,10,079.60  | 3,40,921.98  | 3,59,854.12  | 4,04,364.71  |
| As %age of GDP                                  | 2.19         | 2.26         | 2.13         | 2.15         |

- (# Includes DGOF, DRDO, RR, NCC, Military Farms, ECHS and DGQA

@ Includes Military Farms and ECHS)

Further, the total Defence Expenditure has been consistently around 2% of GDP.  The  total Defence  Budget  (including  Miscellaneous  and  Pensions)  is Rs.  4,04,364.71  Crore,  for  the  year  2018-19,  which  is  16.6%  of  total  Central Government Expenditure. Also, Capital Budget of Ministry of Defence for 2018-19 is approximately 33% of the total capital expenditure of the Central Government. It is  stated  that,  Defence  spending  in  terms  of  national  economic  output  may  not always  be  the  appropriate  indicator.  If  the  economy  grows  at  a  faster  rate, spending decreases as a percentage of GDP, but it doesn't mean that the level of spending has fallen, or has become inadequate.

- (b)  The  expenditure  on  operations/  maintenance  and  Defence  Infrastructure  has been maintained optimally.
- (c)  Details  of  Capital  Budget  which  includes  expenditure  on  modernisation  and equipment for the last three years including the current year are as follows:-

(Rs. in crore)

*Expenditure till December, 2018.

| Year     | Budget Estimates   | Expenditure   |
|----------|--------------------|---------------|
| 2016-17  | 86,340.00          | 86,370.92     |
| 2017-18  | 86,488.01          | 90,438.39     |
| 2018-19* | 93,982.13          | 74,091.65     |

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