Ministry of Defence receives historic allocation of over Rs 6.21 lakh crore in Interim Union Budget 2024-25, marking a 4.72% increase from the previous fiscal year.
New Delhi: In the latest Union Budget, Finance Minister Nirmala Sitharaman announced a significant boost to the defence budget, amounting to Rs 6,21,540.85 crore for the financial year 2024-25. This allocation, representing 13.04% of the total Union Budget, underscores the government's commitment to bolstering self-reliance and promoting exports amidst the evolving geopolitical landscape.
The Ministry of Defence (MoD) emerges as the top beneficiary, securing the highest allocation among all ministries. Compared to the fiscal year 2022-23, the budgetary allocation for defence witnesses an impressive increase of approximately one lakh crore (18.35%), with a 4.72% rise from the previous fiscal year.
The allocation breakdown reveals that a substantial portion, 27.67%, is earmarked for capital expenditure, emphasizing the drive towards self-sufficiency. Additionally, 14.82% is allocated for revenue expenditure to sustain operational readiness, 30.68% for pay and allowances, 22.72% for defence pensions, and 4.11% for civil organizations under the MoD. A notable highlight is the surge in defence capital expenditure, aligning with the agenda of 'Aatmanirbharta' (self-reliance). The budget allocates Rs 1.72 lakh crore for capital expenditure, marking a 20.33% increase from the actual expenditure of the fiscal year 2022-23 and a 9.40% rise from the Revised Allocation of the previous fiscal year.
This enhanced allocation aims to modernize the Armed Forces through major acquisitions, including advanced weaponry, aircraft, ships, unmanned aerial vehicles, and specialist vehicles. Moreover, it supports the indigenous production of defense equipment, contributing to GDP growth, job creation, and overall economic stimulus.
Furthermore, the budget addresses the needs of ex-servicemen through unprecedented allocations to the Ex-Servicemen Welfare Scheme, ensuring better healthcare facilities. Investments in border infrastructure, particularly at the Indo-China border, receive a significant boost to enhance strategic capabilities and socio-economic development in border regions.
The budget also reflects a heightened focus on enhancing the capabilities of organizations like the Border Roads Organisation, Indian Coast Guard, and Defence Research and Development Organisation (DRDO). Increased allocations to these entities signify the government's commitment to bolstering national security and technological advancement.
In response to the budget announcement, Defence Minister Rajnath Singh lauds Finance Minister Nirmala Sitharaman for presenting a forward-looking 'Interim Budget' that aligns with the vision of a confident, strong, and self-reliant India. Singh emphasizes the budget's alignment with Prime Minister Narendra Modi's aspirations for rapid economic transformation and sustained growth, particularly in infrastructure, manufacturing, and technology sectors.
Singh views the increased capital expenditure as pivotal in propelling India towards becoming a five trillion dollar economy by 2027, underscoring the budget's significance in realizing long-term developmental goals.
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