Finance Minister Pranab Mukherjee on Friday, Feb 26, allocated Rs 1,47,344 crore towards defence in 2010-11 budget.
The four per cent increase in real terms would amount to only Rs 5,641 crore.
"Out of Rs 1,47,344 crore, Rs 60,000 crore would go for capital expenditure," Mukherjee said presenting the General Budget in the Lok Sabha.
The Finance Minister in 2009 had provided a steep hike of about 34 per cent for the defence amounting to Rs 36,103 crore.
The defence allocation continues to be around 2.5 per cent of the GDP, despite suggestions to increase in view of the prevailing security situation.