India vs China vs Pakistan: New Delhi allocates 12.9% of total budget for defence sector - Who tops the chart?

Increasing conflicts around the world and border skirmishes are prompting governments to increase their budget allocation for the defence sector, primarily to obtain advanced equipment and develop infrastructure to face unforeseen situations.

The Government of India on Tuesday presented its Budget for the financial year 2024-25, which allocated a 12.9 per cent share of the total Budget for defence. But where does India stand against China and Pakistan in terms of its defence Budget? Let's take a look.

INDIA (US $75 Billion)

India's defence budget for this year has been increased to ₹6.21 lakh crore (approximately US $75 Billion), up from last year's outlay of ₹5.94 lakh crore.

•  The allocation to MoD for FY 2024-25 is higher by approximately ₹one lakh crore (18.43%) than the allocation for FY 2022-23 and 4.79% more than the allocation of FY 2023-24, said the Ministry of Defence (MoD).
• Defence Minister Rajnath Singh said the capital outlay of ₹1,72,000 crore will further strengthen the Armed Forces' capabilities.
• 1.05 lakh crore ( ₹1,05,518 crore) has been earmarked for domestic capital procurement.

Budget 2024: Complete list of what’s cheaper & dearer

• Border infrastructure will further accelerate with the allocation of ₹6,500 Crore to BRO. The allocation is 30 per cent higher than the allocation for FY 2023-24 and 160 per cent higher than the allocation for FY 21-22.
• ₹92,088 crore has been allocated for sustenance and operational readiness. According to MoD, this is 48 percent higher than the budgetary allocation of FY 2022-23.
• The Defence Pension Budget increased to ₹1.41 lakh crore. 
• ₹6,968 crore earmarked for Ex-Servicemen Contributory Health Scheme (ECHS)
• ₹7,651.80 crore was allocated for the Indian Coast Guard (ICG), which is 6.31% higher than the allocation of FY 2023-24, said MoD.

How is the amount allocated?

27.66 per cent: For planned Capital acquisitions

14.82 per cent: Revenue expenditure (on sustenance and operational preparedness)

30.66 per cent: Pay and Allowances

22.70 per cent: For Defence pensions

4.17 per cent: For civil organisations under the Ministry of Defence.

How will the budget be used?

According to Ministry of Defence, the enhanced budgetary allocation will fulfil the requirement of annual cash outgo on planned Capital acquisitions aimed at equipping the Armed forces with state-of-the-art niche technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, specialist vehicles etc.

China ($231.36 billion)

In 2024, China has increased defence budget by 7.2 per cent compared to last year. In March, China announced a defence budget draft worth 1.66554 trillion yuan ($231.36 billion). China has seen an increase in defence budget for nine consecutive years since 2015, despite slowdown in economy.

Pakistan ( ₹2,122 billion)

In Budget 2024-25, Pakistan earmarked ₹2,122 billion for the armed forces in 2024, an increase of 17.6 percent compared to last year’s budget. A report said that the boost in defence spending is the second-largest in six years.

However, according to Dawn News, major military acquisitions and funding for nuclear weapons and missile program­mes are believed to be financed through separate channels hidden under a classified budget line.