Domestic procurements budget for Defence
Why is it in news?
- As per the official data, Government has reserved capital allocation for domestic defence procurements.
- About ₹70,000 crore of the capital allocation of ₹35 lakh crore in the defence budget would be reserved for domestic procurements.
- Second negative list of items that could be procured only locally by the Services would be issued.
- Defence Ministry has planned to invest, about 63% of the outlay for 2021-22 on domestic procurement.
- In the budgetary allocation for 2021-22, the capital allocation for defence saw an increase of ₹21,326 crore or 18.75% compared to Budget Estimates (BE) of last year.
- Last year, for the first time, the government introduced a separate allocation for domestic procurement within the defence budget and reserved ₹52,000 crore for 2020-21.