Economy Defence Ministry working on new budget model with 5 year modernisation plan in sight Updated : November 28, 2019 09:57 AM IST The current budget for defence is Rs 3.18 lakh crore, which is, 1.6 percent of the Gross Domestic Product (GDP) which is said to be the lowest in many decades. For current fiscal, finance minister Nirmala Sitharaman allocated Rs 3,18,931 crore for Defence, which will only take care of committed liabilities of the forces. The government has approved setting up of a defence cyber agency to control and coordinate joint cyber operations. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.