Union Budget 2021 gives big push for modernised military resources amid tensions along LAC

Bearing in mind the growing tension along the borders with China, the government has made a big push towards upgrading resources through military modernisation. For this, the Centre has allocated a defence budget of Rs 4.78 lakh crore for the year 2021-22, with a significant rise towards capital expenditure.

The budget allocated for capital expenditure is Rs 21,326 crore, a rise of 18.75% from the previous year. The total budget of Rs 4.78 lakh crore also includes defence pensions, which is a 1.48% hike from Rs 4.71 lakh crore last year.

Excluding pensions amounting to Rs 1.16 crore, the defence budget for 2021-22 stands at Rs 3.62 lakh crore, marking a 7.34% rise from last year’s Rs 3.37 lakh crore. The jump in capital allocation will give a push towards the procurement of new and modern equipment for guarding the borders.

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Last year, the armed forces made emergency procurement of weapons and mobilise a massive 50,000 soldiers with ammunition along the Line of Actual Control (LAC). As China moved its troops to alter the status quo along the LAC in Eastern Ladakh, high-altitude gears, missiles and armaments were sent along the border on an emergency basis. The Air Force had also mobilised its strategic assets near the LAC.

The Defence Ministry in its statement on increase in capital allocation said: “This is the highest ever increase in capital outlay for defence in the last 15 years.” 

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Opposition criticises Defence expenditure

Despite a significant increase in the defence budget expenditure, the Opposition continued to taunt the Centre for not "spending enough" on defence in the midst of growing threat on the borders.

Reacting to the Union Budget tabled in the Parliament on Monday, Punjab Chief Minister Captain Amarinder Singh said the vital sector of Defence had not been adequately addressed despite the growing border threat from China and Pakistan. 

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Former Finance Minister and Congress leader P Chidambaram claimed that the Union Budget was a let down like never before. Pointing out that the Defence sector did not find a mention in the Budget, he said it was unprecedented that Defence expenditure was increased only by Rs 4,000 crores.

"Defence expenditure increased only by Rs 4000 crores but mentions a reduction in pensions. With the Defence expenditure and health care expenditure the government has failed the people," he said at a press conference. 

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