Banerjee, S. (2025). Decoding South Asia’s Fiscal Balancing Act in Defence, Development, and Demographics. Ecofunomics, 7(1), 50–57. https://doi.org/10.5281/zenodo.14709800
Abstract
This study examines the economic trade-offs of rising military spending in South Asia, focusing on India. The South Asian countries allocate significant portions of their budgets to defence, driven by regional tensions and internal conflicts. This often comes at the expense of vital social sectors like education and healthcare.
The study analyses defence spending as a percentage of GDP and compares it with investments in these sectors. Preliminary data suggests that in 2023, India and Pakistan allocated a larger share of GDP to defence than to education and healthcare combined.
This research highlights the opportunity costs of excessive military spending. It emphasizes the need for a more balanced approach to resource allocation that ensures national security does not compromise sustainable economic development and social welfare in these nations.
Keywords: Military Expenses, South Asian Economies, Developing Economies
JEL Classifications: H56, O53, O10
Author
Sumon Banerjee
Chief Operating Officer
ECOFUNOMICS LLP.
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