Lok Sabha Question No. 106 (STARRED), answered on 2018-07-25
Subject: Defence Budget
Ministry: DEFENCE
Asked by: PINAKI MISRA

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK  SABHA STARRED QUESTION NO.106

TO BE ANSWERED ON THE 25 TH  JULY, 2018

## DEFENCE  BUDGET

## *106.  SHRI  PINAKI MISRA:

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

- (a) whether  a  marginal  increase  of  6  per  cent  in  the  defence  budget  including Rs.86,488  crore  for  modernization  is  likely  to  adversely  affect  stagnate  the  defence modernization prospects and if so, the details thereof;
- (b) whether China's annual defence budget outlay is almost triple the size of India's annual defence budget outlay; and
- (c) if  so,  the  details  thereof  and  the  manner  in  which  the  Government  proposes  to modernize the Indian forces with a meagre increase of 6 per cent in the defence budget to match  the  might  of  the  neighbour's  modern  technical  strength  supported  by  immense defence budgetary outlay?

## A    N    S    W    E    R

MINISTER OF DEFENCE                                    (SMT. NIRMALA SITHARAMAN)

j{kk ea=h

¼Jherh  fueZyk lhrkje.k )

(a) to (c): A Statement is laid on the Table of the House.

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## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK SABHA STARRED QUESTION NO. 106 FOR ANSWER ON 25.07.2018

- (a) The Total Defence Budget (including the Pension and the Miscellaneous Grant) in Budget Estimate 2018-19 is Rs. 4,04,364.71 crore which  is  Rs.  44,510.59  crore  more  than  Budget  Estimate  2017-18.  The percentage  increase  in  Budget  Estimate  2018-19  over  Budget  Estimate 2017-18 is 12.37%. Capital Budget of Ministry of Defence for 2018-19 is Rs. 99,563.86  crore,  which  is  an  increase  of  Rs.  7984.16  crore  (8.72%)  over Capital Budget of 2017-18 (Rs. 91,579.70 crore).  Further, Capital Budget of Ministry of Defence for 2018-19 is approximately 33% of the total Capital expenditure of the Central Government.

The  allocated  budgetary  resources  are  optimally  utilized  towards meeting  the  operational  requirements  of  the  Armed  Forces.  Depending upon  the  allocated  resources    schemes  are  also  reprioritized  to  ensure that  urgent  and  critical  capabilities  are  acquired  without  compromise  of operational preparedness.

- (b) No  official  data  relating  to  China's  annual  Defence  Budget  is available in this Ministry. However, as per Stockholm International Peace Research Institute (SIPRI) database on Military Expenditure, comparative data of India and China for 2016 and 2017 is as under:-

## Military Expenditure (in current million USD)

| Country                 |     2016 |     2017 |
|-------------------------|----------|----------|
| India                   |  56637.6 |  63923.7 |
| China (SIPRI Estimates) | 216031   | 228231   |

## Military Expenditure (in %age of GDP)

| Country                 |   2016 |   2017 |
|-------------------------|--------|--------|
| India                   |    2.5 |    2.5 |
| China (SIPRI Estimates) |    1.9 |    1.9 |

## Military Expenditure (in %age share of Government spending)

| Country                 |   2016 |   2017 |
|-------------------------|--------|--------|
| India                   |      9 |    9.1 |
| China (SIPRI Estimates) |      6 |    6.1 |

as

(c) Capital Acquisition of defence equipment is undertaken a continuous activity to keep the Armed Forces in a state of preparedness and remaining equipped with modern weapon system. DPP-2016 contains provisions  for  reducing  the  timelines  for  completion  of  procurement activities.  Further,  Government  regularly  monitors  progress  of  on-going procurement projects so as to ensure that the Armed Forces are equipped to meet the entire spectrum of security challenges.

Government is also taking measures for modernization of the Armed Forces, through procurement of new equipment and upgrading of existing equipment and systems. The modernization projects are being progressed as per the approved Capital Acquisition Plans and in terms of the extant Defence Procurement Procedure.

During  the  last  three  financial  years  and  current  year  (upto  June, 2018), 168 contracts have been signed (106 with Indian vendors and 62 with Foreign vendors) for capital procurement of Defence equipment  for Armed Forces  such  as  Tanks,  Rifles,  Rockets,  Ships,  Frigates,  Aircraft,  Radars, Missiles, Artillery Guns,  Ballistic Helmets, Helicopters,  Electronic Fuzes, Simulators, Bullet Proof Jackets and Ammunition.

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