New Delhi, January 28: Finance Minister Nirmala Sitharaman will present the Union Budget 2021-22 on February 1, Monday. This year budget allocation for defence sector is likely to be more as compared to the last year, due to the ongoing standoff between the Indian Army and the People Liberation Army (PLA) China along the Line of Actual Control (LAC). Year Ender 2020: From Arrival of Rafale Jets to MH-60 Romeo Helicopters Deal With US, Major Developments For Indian Defence Sector This Year.
Due to the outbreak of COVID-19 Pandemic, the Centre in April last year, released an order, which listed cash inflow and management of each Ministry. According to reports, a cap of 20 percent was put on spending on defence capital, defence services and defence pensions. However, as part of Atman Nirbhar Bharat programme, the Centre announced several reforms for the Defence and seven other sectors. India-China Border Stand-Off: Chinese Troops' Attempts to Unilaterally Alter Status Quo in Violation of Bilateral Agreements, Defence Minister Rajnath Singh Tells Beijing.
The Foreign Direct Investment (FDI) cap was increased to 74 percent. The government also imposed an embargo on the import of 101 defence items "beyond given timeline" to boost indigenous production in line with Prime Minister Narendra Modi's call for Atma Nirbhar Bharat or Self-Reliant India. Last year in August, the government also announced that the MoD had bifurcated the capital procurement budget for 2020-21 between domestic and foreign capital routes.
The Ministry of Defence (MoD) has signed more than 180 contracts worth Rs 1,96,000 crore with the Indian industry since 2014. Meanwhile, there are also major procurement programmes which are in the pipeline. The government had begun the process for the procurement of 114 fighter jets for the Indian Air Force. The Centre will also have to provide funds for, P 75I class submarines for Indian Navy and artillery modernisation for the Army.
Last year, the union government had allocated Rs 3.37 lakh crore as the defence budget for 2020-21, which was a hike of only 5.8 percent as compared to the last year. As part of the Rs 3.37 lakh crore allocated for Defence for 2020-21, Rs 1.18 lakh crore was the capital outlay, and Rs 2.18 lakh crore was the revenue head. The government had also allocated Rs 1.33 lakh crore is the allocation for defence pensions.
(The above story first appeared on LatestLY on Jan 28, 2021 04:11 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).