In Arun Jaitley's Budget, Defence Share At Lowest Since Independence

New Delhi: India's defence budget is up by about 5.6 per cent this year but it is at its lowest as a component of the Gross Domestic Product (GDP) since Independence.

In 1962, the defence budget was 1.5 per cent of the GDP. This year it is 1.62 per cent. In real terms, this means a marginal hike though barely enough to factor in inflation over the years.

In comparison, say experts, China is estimated to have a defence budget of three per cent of the GDP.

In this year's budget, Finance Minister Arun Jaitley has announced Rs 2,74,000 crore for defence, which accounts for 12.7 per cent of the total government spending for 2017-18. It is an increase of around 5.6 per cent over last year's budget.

"For defence expenditure excluding pensions, I have provided a sum of Rs 2,74,114 crore including Rs 86,488 crore for defence capital," Mr Jaitley said.

Experts say the defence budget has to address inflation and the need to modernize India's aging military hardware, which features Soviet era aircraft, outdated guns and body armor.

However, because of slow decision making, thousands of crores in the sector remain unspent and are usually returned.

Mr Jaitley also announced a web-based interactive pension distribution system for retired soldiers. "This system will receive pension proposals and make payment centrally. This will reduce the grievance of the defence pensioners," said the minister.

He announced an online tickets booking system to help defence personnel avoid queues at public counters.