Budget Byte: Can the GDP fall increase Budgetary share of defence forces?

Defence pensions now increasingly demand more funds than supremely important capex

In what is known but worrisome and gradual development, outgo on pensions to retired defence personnel takes up more Budget money than modernisation of army, navy and air force via capex. Though this may be a structural issue, raising more Budgetary resources for defence modernisation is necessary.

Defence spend on decline, but GDP fall may push up its share in economy this year

Due to a contraction in the economy, defence spend as a share of GDP has risen in the first half of this year, touching the mark of 2%. But it has been on a decline in the last few years, despite the ever-growing need to raise it. Focus on health and the inevitability of committed expenditure may result in a dip in defence’s share in total government spending. 



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