In the last five years of the Modi government, the Agriculture sector was the biggest beneficiary in the budget allocation with annual growth of 59%, followed by urban development (24%) and energy (21%).
Surprisingly, despite the pro-military attitude of PM Narnedra Modi, the allocation in the defence sector has shown a paltry CAGR of just 8% over the past five years. To give a perspective, even to marginally modernise the armed forces, the government needs an allocation of at least 2.5% of the GDP, according to the experts. Similarly, the allocation of the subsidies has gone up by just 6% in the past five years. The subsidies and the defence allocations have shown the lowest CAGR in the critical sectors.
On the other hand, the departmental allocation has come down heavily. The allocation of finance department has declined by a CAGR of 27%, while that of planning and statistics has declined by 1%. The allocation to the Ministry of External Affairs has shown a paltry CAGR of 5%.
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