Finance Minister Nirmala Sitharaman on Monday allocated Rs 4.78 crore to the defence budget for FY22 as against Rs 4.71 lakh crore last year.

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The government has set aside Rs 1.35 lakh crore for capital expenditure that includes purchasing new weapons, aircraft, warships and other military hardware. The capital outlay in the previous Budget was Rs 1.13 lakh crore.

Defence Minister Rajnath Singh said that nearly 19 percent increase in the capital expenditure is the highest-ever increase in the last 15 years.

"I specially thank PM and FM for increasing the defence budget to Rs 4.78 lakh cr for FY 21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly 19 per cent increase in defence capital expenditure. This is the highest ever increase in capital outlay for defence in 15 yrs," Defence Minister Singh tweeted.

I specially thank PM& FM for increasing the defence budget to 4.78 lakh cr for FY21-22 which includes capital expenditure worth Rs 1.35 lakh crore. It is nearly19 percent increase in Defence capital expenditure. This is highest ever increase in capital outlay for defence in 15yrs

— Rajnath Singh (@rajnathsingh) February 1, 2021

Experts believe the increase in capital outlay will help the Armed Forces in carrying on with their modernisation drive in order to increase its warfighting capability.

Last month, Army Chief MM Naravane had said that self-reliance in defence has become a strategic necessity for India, highlighting that the country is lagging behind in defence modernisation compared to its adversaries.

He also said that Pakistan and China together form a potent threat to national security and their collusive approach towards India cannot be wished away.

(Edited by : Aditi Gautam)

First Published:Feb 1, 2021 6:55 PM IST