• Introduction
• History of defence sector
• Expectations from 2016-17
• Highlights of Defence sector 2016-17
• Comparison between 2015-16 and 2016-
17
• Where do we stand?

• Defence budget is the portion of the
overall budget of Union budget,
allocated for the funding of the Indian
Armed Forces
• Defence budget is crucial for the country
and any amount can be issued to
defence sector at any point of time
• Defence was not covered by finance
minister in his speech of Lok Sabha in
2016-17 budget, for the first time

• 10% increase from 2015-16 allocation
• Operational expenses on account of Pay
Commission to deplete
• Make in India in DPP to increase by 200%
• The share of IAF in capital acquisition should
see a substantial increase
• 'Defence Technology Fund' to be enhanced to
Rs 1,000 cr, ceding to the long-standing
demand of the industry

• An outlay of Rs 2,49,099 cr has been proposed
as budget estimates (BE) for the financial year
2016-17
• There’s a hike of 11%
• Allocation does not include defence pension
and some civil expenses
• Capital allocation for defence ministry is 86,340
cr of which 78,587 cr is for services procuring
weapons

• Due to non-completion of contracts the
sector has returned 13,188 cr
• Huge jump of 82,332 cr due to
implementation of one rank, one pension
• Revenue component of defence
(services) estimated at 1,62,759 cr in
budget estimate 2016-17

• India's defence budget was likely to see a
hike of 9% to Rs 2.68 lakh cr in 2016-17
while the pension bill alone may go up
by over Rs 80,000 cr
• Further, defence ministry to surrender
12,400 cr , or 16% of the Rs 77,406 cr for
acquisitions under the capital head
• Budget allocation of 2016-17 is 11%
higher from last years

REGION OFFICAL BUDGET
USA $575 billion
CHINA $131 billion
INDIA $40 billion
0
100
200
300
400
500
600
700
USA CHINA INDIA
BUDGET
BUDGET