Union Budget 2024 Not A Big Difference For Defence Sector (Photo @Pixabay)
There was no major change for the Defence sector in the 2024 Union Budget when the government made the allocation of Rs 6.21 lakh crore, the same as the interim Budget. During the interim budget presented five months ago, the government allocated Rs 6.21 lakh crore to the sector.
The allocation for the FY25 is analysed to be not up to the expectation given the growing threat in the India-Chinese border. However, out of the total allocation, Rs 1.72 lakh crore has been dealt out for capital outlay to enhance the armed forces. The Budget allocated Rs 6,500 crore for strengthening border infrastructure, Rs 7,651.80 crore for the Indian Coast Guard, and Rs 23,855 crore for the Defence Research and Development Organisation (DRDO). The expenditure for the armed forces is Rs 92,088 crore, excluding salaries. The defense pension constitutes Rs 1.41 lakh crore.
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Defense Minister Rajnath Singh, while congratulating the Finance Minister, said that the allocation for border infrastructure Rs 6,500 crore constitutes a 30% increase, adding that he was pleased for the boost for Border Roads and infrastructure in the Budget.
The Budget has also included a substantial incentive for defense startups with an allocation of Rs 518 crore to the Innovations for Defence Excellence (iDEX) scheme. The scheme is intended to support the exploration for technological solutions from startups, MSMEs, and innovators.
Defense Minister in a post on X thanked the Finance minister for the “highest allocation.” “As far as the allocation to Ministry of Defence is concerned, I thank the Finance Minister for giving the highest allocation to the tune of Rs 6,21,940.85 Crore, which is 12.9 % of total Budget of GoI for FY 2024-25. The capital outlay of Rs 1,72,000 Crore will further strengthen the capabilities of Armed Forces. Earmarking of Rs, 1,05,518.43 Crore for domestic capital procurement will provide further impetus to Atmanibharta,” he wrote.
As far as the allocation to Ministry of Defence is concerned, I thank the Finance Minister for giving the highest allocation to the tune of Rs 6,21,940.85 Crore, which is 12.9 % of total Budget of GoI for FY 2024-25.
The capital outlay of Rs 1,72,000 Crore will further…
— Rajnath Singh (@rajnathsingh) July 23, 2024
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Notably, the government reportedly plans to reduce the dependency on imported military equipment by supporting domestic defence manufacturing. Rajnath Singh announced his plans to increase military hardware exports significantly in the coming years.
