Union Budget 2023: India allots nearly Rs 1.4 lakh crore for pensions of armed forces

Expenditure on defence pension has grown at an annual average rate of 10.7 percent between 2012-13 and 2022-23. This is higher than the average annual growth of the defence budget at 8.6 percent. This year, the government has allocated nearly 4 lakh crore for pensions in the defence forces — 15 percent higher than what was allocated last year.

In the budget for 2022-23, the expenditure on defence pension was estimated to be Rs 1,19,696 crore, which is 2 percent higher than the revised estimate of Rs 1,16,878 crore in 2021-22. The Army has the highest pension obligations.

In 2022-23, Rs 3,06,055 crore was allocated for the Army which is the largest among the three forces, both in terms of its budget and the number of personnel,. This includes Rs 2,30,501 crore for salaries and pensions which is 76 percent of the Army’s budget.

Defence pension has been a major part of the government's expenditure budget. Under the Union Budget for 2022-23, pension pay-outs amount to Rs 1,19,696 crore. When the Agnipath scheme was launched last year, it was said that with the scheme, the government aims to cut down the burgeoning pension bill of the defence forces.