India's federal government has announced an INR4.71 trillion (USD65.9 billion) defence budget for fiscal year 2020/21 (FY 2020/21), which represents a 5.18% increase of INR225.58 billion compared to the allocation for the previous fiscal year.
Military officers and Ministry of Defence (MoD) officials said the budget increase, which was announced by Finance Minister Nirmala Sitharaman on 1 February, includes INR1.33 trillion for military pensions, leaving just INR3.38 trillion for all three services.
This corresponds to around 1.5% of India's GDP and continues the multi-year trend of steadily reduced military spending for the country.
According to the Indian government's Press Information Bureau (PIB), the defence budget accounted for 15.49% of the federal government's total expenditure for the upcoming fiscal year.
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