New Delhi, July 23: In the Union Budget for the Financial Year (FY) 2024-25, the Ministry of Defence (MoD) has been allocated a historic Rs 6,21,940.85 crore (approximately US $75 billion). This is the highest allocation among all ministries, demonstrating the government’s commitment to bolstering national security and promoting ‘Aatmanirbharta’ in defence technology.
Budget Allocation Overview
The defence budget for FY 2024-25 is significantly higher than previous years. It represents an 18.43% increase over FY 2022-23 and a 4.79% rise from FY 2023-24. This allocation includes:
- Capital Expenditure: Rs 1.72 lakh crore (20.33% higher than FY 2022-23).
- Revenue Expenditure: Focused on operational preparedness and maintenance.
- Pay and Allowances: 30.66% of the total allocation.
- Defence Pensions: Rs 1.41 lakh crore, catering to approximately 32 lakh pensioners.
- Innovation in Defence: Rs 400 crore additional funding under the ADITI scheme.
Rs 6.22 lakh Cr allocated to MoD, 4.79% higher than FY 2023-24
Rs 1.72 lakh Cr for capital acquisition; Rs 92,088 Cr for for sustenance & op readiness
Defence Pension Budget increased to Rs 1.41 lakh Cr.
Rs 6,500 Cr for @BROindia.
Read: https://t.co/Dl66M59Fag#Bugdet2024— PRO Nagpur, Ministry of Defence (@PRODefNgp) July 23, 2024
Focus on Indigenous Defence Technology
The budget emphasizes self-reliance in defence manufacturing, with 75% of the modernization budget (Rs 1,05,518.43 crore) earmarked for procurement through domestic industries. This move is expected to create job opportunities and stimulate economic growth. The iDEX initiative, which supports start-ups and MSMEs, has seen its budget increase from Rs 115 crore to Rs 518 crore, fostering innovation in defence technology.
Enhancing Operational Readiness and Infrastructure
Operational readiness receives a significant boost with Rs 92,088 crore allocated for the current fiscal year, 48% higher than FY 2022-23. This will enhance maintenance facilities, procure ammunition, and ensure the mobility of resources and personnel. Strategic infrastructure projects, including the development of Nyoma Airfield in Ladakh and key tunnels in Himachal Pradesh and Arunachal Pradesh, will be funded from this allocation.
The Indian Coast Guard (ICG) has been allocated Rs 7,651.80 crore, a 6.31% increase from FY 2023-24, with Rs 3,500 crore dedicated to capital expenditure for advanced patrol and surveillance capabilities.
The Defence Research and Development Organisation (DRDO) will receive Rs 23,855 crore, with a substantial portion allocated for capital expenditure. This will enhance the development of new technologies and collaboration with private industries.
Conclusion
The Union Budget 2024-25’s allocation to the Ministry of Defence underscores the government’s commitment to national security, indigenous technology, and operational readiness. The enhanced budget will not only equip the Armed Forces with state-of-the-art technology but also boost economic growth through increased domestic manufacturing and job creation.
By focusing on these key areas, the government aims to strengthen India’s defence capabilities and ensure the Armed Forces are always prepared to meet any challenges.
