Indian Defence budget 2015-16

                  The defence budget of India has grown by eight percent over the previous year’s Defence 

budget but the growth rate amounts  to 11% over the revised  allocation for 2014-15. It is obvious that 

original budget allocation of 2014-15 has been revised downward to the extent of Rs.6,630 crore. This is 

because of the reduction in the capital expenditure by Rs.12,623 crore. On the other hand, the revenue 

expenditure has been revised upward by Rs. 5,993 crore.

                Putting together the revenue expenditure and the capital expenditure of the Indian 

Defence Budget of the past two successive allocations, the total amount under the Budget 

Estimate  

was Rs. 229000.0 for 2014-15. The total amount allocated under the Revised Estimate for 2014-15 

was Rs. 222370.0. The total amount under the Budget Estimate for 2015-16 is Rs. 246727.0. 

                While the share of Defence Budget in Central Government Expenditure in 2015-16 is 13.9% , the 
share for the previous year was 12.8%.

                Like in the past, the Army has the lion's share (53% of the defence budget ( Rs. 1,30,874 crore).

 The Air Force stands in the second place with an allocation of Rs. 56,658 crore. The occupies the third 

place with Rs. 40,529 crore. The D.R.D.O. gets Rs. 14,358 crore. An allocation of Rs. 3644 crore has 

been done for the Ordinance Factories.

                The Air Force comes a distant second with an allocation of Rs. 56,658 crore, followed by the Navy (Rs. 

40,529 crore), Defence Research and Development Organisation (Rs. 14,358 crore) and Ordnance 

Factories (Rs. 3,644 crore) (see Figure II).  It is to be noted, however, that the Army is the most 

revenue-intensive service. In 2015-16, 80 per cent of its budget has been earmarked for revenue 

expenditure. The corresponding figures for the Navy and Air force are 38 and 41 per cent, respectively.