Defence allocation
The defence allocation in the Budget was expected to be hiked up substantially from Rs 2.04 lakh crore in the last fiscal. It has been put at Rs 2,29,000 crore.
The biggest outgo on the expenditure side is interest payments to service debt. The next biggest item is defence spending. Given India’s fight with terrorism and its hostile neighbours, it is only natural that this goes up.
After interest payments and defence, subsides, salaries and pensions are other major expenditures of the government.
