NEW DELHI, 23 Jul: India has set aside Rs. 6,21,940 crore for defence spending in 2024-25, virtually keeping the same amount allocated in the interim budget amid the continuing border row with China in eastern Ladakh as well as concerns over the evolving security situation in the strategic waterways.
The total allocation for defence is 4.79 per cent higher than the outlay made in the financial year 2023-24.
A total of Rs 1.72 lakh crore was set aside to the military for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.
For 2023-24, the budgetary allocation for capital outlay was Rs. 1.63 lakh crore while the revised estimates put the amount at Rs. 1.57 lakh crore.
The revenue expenditure for day-to-day operating costs and salaries has been pegged at Rs. 2.82 lakh crore while Rs. 1,41,205 crore has been set aside for defence pensions, which is 2.17 per cent higher than the allocation made in 2023-24.
The total allocation made for defence in the interim budget in February was Rs. 6,21,540 crore.
On the capital outlay, the defence ministry said the allocation is aimed at filling the critical capability gaps through big ticket acquisitions in current and subsequent years.
“The enhanced budgetary allocation will fulfill the requirement of annual cash outgo on planned capital acquisitions aimed at equipping the armed forces with state-of-the-art niche technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones and specialist vehicles,” it said.
The Ministry of Defence has earmarked 75 per cent of modernisation budget amounting to Rs. 1,05,518.43 crore for procurement through domestic industries, it said.
“In absolute terms, budgetary allocation under capital head to the defence forces for 2024-25 is Rs. 1.72 lakh crore, which is 20.33 per cent higher than the actual expenditure of 2022-23 and 9.40 per cent more than the revised allocation of 2023-24,” the ministry said in a statement.
It further said, “The continued higher allocation for operational readiness boosts the morale of the armed forces with the sole motive of keeping them battle ready at all times.” The ministry said the government has allocated Rs. 92,088 crore during the current financial year under this head.
“This is aimed to provide best maintenance facilities and support system to all platforms including aircraft and ships. It will facilitate procurement of ammunition; mobility of resources personnel as demanded by the security situation, and strengthen the deployment in forward areas for any unforeseen situation,” it said.
The budgetary allocation to Border Roads Organisations (BRO) under capital head has been proposed at Rs. 6,500 crore.
The outlay to Defence Research and Development Organisation (DRDO) has been increased to Rs. 23,855 crore in 2024-25 from Rs. 23,263 crore in 2023-24.
Out of this allocation, a major share of Rs. 13,208 crore is allocated for capital expenditure.
On the allocation for defence spending, Defence Minister Rajnath Singh exuded confidence that the capital outlay of Rs. 1,72,000 crore will further strengthen the capabilities of the armed forces.
He also hoped that the earmarking of Rs. 1,05,518.43 crore for domestic capital procurement will provide further impetus to the ‘Aatmanibharta’ (self-reliance) in defence.
Singh described the overall budget for financial year 2024-25 as “excellent and outstanding,” which he said will help India move towards a prosperous and self-reliant ‘Viksit Bharat.’
In a post on X, he stated that inspired by Prime Minister Narendra Modi’s vision of inclusive and fast-paced development, the budget will accelerate the country’s economic transformation.
It will go a long way in making India a USD five trillion economy by 2027, he added. (PTI)