Defence allotted Rs 6.22 lakh cr, focus on indigenous procurement, modernisation
New Delhi: The Ministry of Defence (MoD) earned the biggest allocation of any ministry in the Union Budget for Fiscal Year (FY) 2024-25, with a significant rise of 4.79 per cent from the previous year. The overall allocation is Rs 6, 21,940.85 crore (about US $75 billion), indicating a strong commitment to strengthening the nation’s defence capabilities. The capital acquisition budget has been set at Rs 1.72 lakh crore, which represents a 20.33 per cent increase over FY 2022-23 and a 9.40 per cent increase over the revised allocation for FY 2023-24. This significant commitment aims to fill crucial capability shortfalls through the procurement of modern weaponry and platforms, including fighter aircraft, ships, submarines, and drones.
A significant portion of the Budget, Rs 1, 05,518.43 crore, has been earmarked for procurement through domestic industries, emphasising the government’s push for self-reliance in defence technology and manufacturing. This is expected to have a positive impact on the economy, stimulating GDP growth, job creation, and capital formation.
The allocation for sustenance and operational readiness has also seen a substantial increase, with Rs 92,088 crore allocated to ensure that the armed forces are well-maintained and battle-ready at all times. This represents a 48 per cent increase over the budgetary allocation of FY 2022-23.
The defence pension Budget has been increased to Rs 1.41 lakh crore, a 2.17 per cent rise over the previous year, to support approximately 32 lakh pensioners through the System for Pension Administration (Raksha) or SPARSH.
Infrastructure development along the borders has been given a significant boost, with Rs 6,500 crore allocated for border roads development, a 30 per cent increase over FY 2023-24, and Rs 7,651 crore for coastal security, a 6.31 per cent rise over the previous year’s allocation.
The Budget for innovation in defence has been significantly enhanced, with the allocation for iDEX (Innovations for Defence Excellence) increased to Rs 518 crore from Rs 115 crore in FY 2023-24. This is aimed at fostering innovation and supporting start-ups, MSMEs, and innovators in developing cutting-edge defence technologies.
The allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) has been raised to Rs 6,968 crore, a 28 per cent increase over the previous year, to ensure that veterans and their dependents receive the best healthcare facilities.
Meanwhile, the Union Minister of Defence Rajnath Singh also praised the Budget, stating that it will accelerate the country’s economic transformation and make India a $5 trillion economy by 2027. He also expressed confidence that the capital outlay will strengthen the armed forces and that the focus on domestic procurement will further the goal of ‘Aatmanibharta’ in defence.
He also claimed that the Budget is a step towards achieving a prosperous and self-reliant ‘Viksit Bharat’ (developed India), which is in line with Prime Minister Narendra Modi’s vision of inclusive and fast-paced development.
