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.

Posted by Jawwad Kazi on 23rd Feb 2021