Budget 2025: Defence still below 2% of GDP; 'Aatmanirbharta' push continues

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Budget 2025: Defence still below 2% of GDP; 'Aatmanirbharta' push continues - Business Standard

Quick Summary:

According to the latest available data from the Stockholm International Peace Research Institute (SIPRI), the United States spent 3.4 per cent of its GDP on defence in 2023, while China allocated an estimated 1.7 per cent in the same year.

For FY26, Rs 8,317 crore has been allocated to the Ex-Servicemen Contributory Health Scheme (ECHS), reflecting a 19.38 per cent increase over the Budget Estimate (BE) of FY25.

The latest allocation follows the overall trend over the past five years of a relative decline in defence spending as a proportion of GDP and the national budget, with FY26 showing a slight recovery in its share of the national budget but remaining unchanged relative to GDP.