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Published in the 1-15 Nov 2004 print edition of MG; send me the print edition

Defence spending of India & Pakistan

Exactly how much are India and Pakistan military budgets, and what percentage of their respective GDPs goes to defence?
Razi Raziuddin

Editor: India's defence budget for 2004-05, announced last July 2004 totaled Rs 77,000 crores ($16.74 billion), an increase of 17.92% over the previous year's allocation. The increase primarily for capital expenditure of Rs 33,483 crores ($7.31 b), is to cater to outflows for major deals already signed by the previous government, including the commitments towards Hawk AJTs, SU-30s, Phalcon AWACS and aircraft carrier Gorshkov. It also takes care of a major modernisation of the Navy which is taking place at present. This year's Indian defence spending stands at 2.55% of the GDP, if the budgeted amount is fully spent. Large sums have been returned unspent year after year especially since the Bofors and Tehelka scandals. In contrast, Pakistan spends 5.5 per cent of its GDP. In June 2004 Pakistan increased its defence budget outlay by 20% for fiscal 2004-05 -- to Rs 19,392 crore ($3.32 billion).

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