Lok Sabha Question No. 3225 (UNSTARRED), answered on 2022-08-05
Subject: Expenditure on Salaries
Ministry: DEFENCE
Asked by: Deepak (Dev) Adhikari, Jagdambika Pal, D. M. Kathir Anand

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE

## DEPARTMENT OF DEFENCE

## LOK SABHA UNSTARRED QUESTION NO. 3225

TO BE ANSWERED ON 05 th  August, 2022

## EXPENDITURE ON SALARIES

3225. SHRI ADHIKARI DEEPAK (DEV):

SHRI JAGDAMBIKA PAL:

SHRI D.M. KATHIR ANAND:

Will the Minister of DEFENCE be pleased to state:

- (a) the total number of pensioners of defence services along with the actual estimates of pension payouts from the year 2012 to 2022;
- (b) the total expenditure incurred on salaries and pensions to defence personnel and other major heads like establishments, defence procurement during the last five years, year-wise;
- (c) whether the budget allocation for defence has been increased every year and if so, the details of the amount allocated every year, from 2014 onwards;
- (d)  whether  the  annual  budgetary  allocation  for  defence  in  India  is  very  low  compared  to  the defence budget of China, USA and Russia and if so, the response of the Government thereto; and
- (e) the steps taken/proposed to increase the capital expenditure in the defence sector?

## A  N  S  W  E  R

MINISTER OF STATE

(SHRI AJAY BHATT)

IN THE MINISTRY OF DEFENCE

- (a):    The  total  number  of  pensioners  in  Defence  Services  as  on  1 st April,  2022  is  35,21,876. Actual Estimates of pension payout from 2012 to 2022 is stated below:-

(Amount in Crores)

| Year    | Defence Pensions (Actual Expenditure )   |
|---------|------------------------------------------|
| 2012-13 | 43,367.71                                |
| 2013-14 | 45,499.54                                |
| 2014-15 | 60,449.75                                |
| 2015-16 | 60,237.60                                |
| 2016-17 | 87,825.80                                |
| 2017-18 | 91,999.58                                |
| 2018-19 | 1,01,774.61                              |
| 2019-20 | 1,17,810.24                              |
| 2020-21 | 1,28,065.77                              |
| 2021-22 | 1,16,799.85                              |

(b):  Establishment Expenditure includes all the establishment related expenditure viz. salaries, medical  expenses, wages,  overtime  allowances,  foreign travel expenses, domestic  travel expenses,  office  expenses,  materials  and  supplies,  publications,  advertising  and  publicity, training,  other  administrative expenses, POL, cost of ration, clothing and tentage, professional services,  rent  rates  and  taxes,  royalty,  pensionary  charges,  rewards  and  minor  works,  motor vehicles,  information  technology  etc.  The  establishment  expenditure  includes  both  salary  and non-salary  segments.  Details  of  Total  expenditure  incurred  on  Salary,  Non-Salary  (including Defence Stores Procurement) and Pensions of Defence personnel for the last five years are as under: -

(Rs. in Crore)

| Year     | Total Expenditure on Salary   | Total Expenditure on Non-Salary   | Total Expenditure on Defence Pensions   |
|----------|-------------------------------|-----------------------------------|-----------------------------------------|
| 2017-18  | 1,34,354.90                   | 47,766.54                         | 91,999.58                               |
| 2018-19  | 1,41,508.00                   | 50,951.59                         | 1,01,774.61                             |
| 2019-20  | 1,47,972.55                   | 59,599.60                         | 1,17,810.24                             |
| 2020-21  | 1,45,884.74                   | 59,855.17                         | 1,28,065.77                             |
| 2021-22* | 1,57,893.39                   | 70,668.90                         | 1,16,799.85                             |

(c):Details  of  budget  provided  to  Ministry  of  Defence  (All  four  Grants)  in  Budget  Estimates (BE) from 2014-15 to 2022-23 are tabulated below: -

(Rs. in Crore)

| Financial Year   | BE Allocation   |
|------------------|-----------------|
| 2014-15          | 2,85,202.87     |
| 2015-16          | 3,10,079.60     |
| 2016-17          | 3,40,921.98     |
| 2017-18          | 3,59,854.12     |
| 2018-19          | 4,04,364.71     |
| 2019-20          | 4,31,010.79     |
| 2020-21          | 4,71,378.00     |
| 2021-22          | 4,78,195.62     |
| 2022-23          | 5,25,166.15     |

[

It  may  be  inferred  from  the  above  table  that  Budget  allocation  for  Defence  has  been increasing consistently.

(d):This Ministry does not maintain expenditure data of other countries. However, based on the data available on Stockholm International Peace Research Institute (SIPRI) Website, expenditure figures of the top five countries for the year 2021 are as under:-

: 3 :

(in Current US $ Million)

|   Sl. No. | Country                  | Expenditure for 2021   |
|-----------|--------------------------|------------------------|
|         1 | United States of America | 800,672.20             |
|         2 | China                    | 293,351.90             |
|         3 | India                    | 76,598.00              |
|         4 | United Kingdom           | 68,336.40              |
|         5 | Russia                   | 65,907.70              |

It may  be  seen from the above table that India's Defence Expenditure is 3 rd largest  among the  major Defence spenders  in  the  year  2021.  It  is  pertinent  to  mention  that  Government  resources  come  with  a definite cost and accordingly allocations are made among various competing priorities based on the  overall  resource  envelope  of  the  Government.  It  is  also  stated  that  amongst  the  Central Ministries, Budget of Ministry of Defence is the highest. 5 Russia 65,907.70

(f):  As  a  part  of  ongoing  Defence  Reforms  towards  enhancing  Capital  Expenditure,  the procedural guidelines governing Capital Acquisition projects have been revised and notified vide Defence Acquisition Procedure 2020. Further, the Services have been empowered with enhanced delegated  Capital  procurement  powers  at  HQrs  level,  including  freshdelegation  of  financial powers for overhauls, refits and upgrades to PSOs  at Service Headquarters and Field Commanders.

*****