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A Brief Note on India’s Defense Budget: 1999-2000

Project Defense Expenditure: Rs. 45,694 crores (~ US $ 10.75 billion)
Percentage of GDP 2.28 %
Percentage of Central Government Expenditure 14 %

In comparison with 1998-1999

  • Increase of Rs. 4,494 crores (~ US $ 1 billion)
  • An increase of 10.9 %; less than 3 % when adjusted to inflation
  • Decline in % of GDP from 2.31 to 2.28

Pay allowances and training accounts for 75 % of defense budget
Expenditure on new acquisition - Rs. 12,230 crores (~ US $2.9 billion)

Distribution across the Services:

Army        56%
Air Force  22%
Navy        14%
R&D          6%

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