Our defence budget really is Rs 3.37 lakh cr. Two-thirds goes towards salaries, etc.

NEW DELHI: In a marginal hike, the Union Budget on Saturday increased the defence budget to Rs 3.37 lakh crore for 2020-21 against last year's Rs 3.18 lakh crore, belying expectations of a significantly enhanced allocation.

Out of the total allocation, Rs 1.13 lakh crore has been set aside for capital outlay for purchase of new weapons, aircraft, warships and other military hardware, according to the papers presented in the Lok Sabha by finance minister Nirmala Sitharaman.

Revenue expenditure which includes expenses on salaries and maintenance of establishments has been pegged at Rs 2.09 lakh crore.

The total outlay does not include Rs 1.33 lakh crore set aside separately for payment of pensions.

The percentage of allocation has almost remained static at around 1.5 per cent of the GDP which, according to experts, is the lowest since the 1962 war with China.