Lok Sabha Question No. 4024 (UNSTARRED), answered on 2023-03-24
Subject: Defence Expenditure
Ministry: DEFENCE
Asked by: Nusrat Jahan Ruhi

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK SABHA UNSTARRED QUESTION NO. 4024

TO BE ANSWERED ON 24 th  March, 2023

## DEFENCE EXPENDITURE

4024.  MS. NUSSRAT JAHAN:

Will the Minister of DEFENCE be pleased to state:

- (a)   whether it is a  fact that the Defence expenditure has declined as a percentage of GDP since 2014;
- (b)  if so, the details thereof;
- (c)    whether  the  Government  has  taken  any  steps  to  increase  its  defence  expenditure  as  a percentage of GDP; and
- (d)  if so, the details thereof and if not, the reasons therefor?

## A  N  S  W  E  R

MINISTER OF STATE

(SHRI AJAY BHATT)

IN THE MINISTRY OF DEFENCE

- (a) to (d):  Details of Defence Expenditure as a percentage of the Gross Domestic Product from FY 2014-15 to 2023-24 are tabulated below: -

(Rs. In Crore)

| Financial Year   | Defence Expenditure (Gross)   | GDP                   |   Defence Expenditure as a %age of GDP |
|------------------|-------------------------------|-----------------------|----------------------------------------|
| 2014-15          | 3,17,207                      | 1,24,67,960           |                                   2.54 |
| 2015-16          | 3,27,096                      | 1,37,71,874           |                                   2.38 |
| 2016-17          | 3,89,614                      | 1,53,91,669           |                                   2.53 |
| 2017-18          | 4,17,242                      | 1,70,90,042           |                                   2.44 |
| 2018-19          | 4,42,683                      | 1,88,99,668 (3 rd RE) |                                   2.34 |
| 2019-20          | 4,88,795                      | 2,00,74,856 (2 nd RE) |                                   2.43 |
| 2020-21          | 5,23,330                      | 1,98,00,914 (1 st RE) |                                   2.64 |
| 2021-22          | 5,32,264                      | 2,36,64,637 (PE)      |                                   2.25 |
| 2022-23 (RE)     | 6,15,582                      | 2,73,07,751 (1 st AE) |                                   2.25 |
| 2023-24 (BE)     | 6,23,758                      | 3,01,75,065           |                                   2.07 |

Note:   (i) GDP figures from FY 2014-15 to 2022-23 have been taken from Economic Survey 2022-23 - Table 1.6: Components of Gross Domestic Product at Current Prices.

(ii) GDP figure for FY 2023-24 has been taken from Budget at a Glance 2023-24.

BE- Budget Estimates, RE- Revised Estimates

PE- Provisional Estimates, AE- Advanced Estimates

It is seen from the above data that Defence Expenditure as a percentage of GDP may appear  to  be  decreasing  due  to  increasing  trend  in  the  growth  of  GDP.  However,  Defence Expenditure is increasing in absolute terms, implying higher spending. Further, as and when required, additional funds are sought at Supplementary/RE stage. Also, if need arises, through reprioritization,  it  is  ensured  that  urgent  and  critical  capabilities  are  acquired  without  any compromise to the operational preparedness of the Defence Services.

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