Guwahati: The Interim Union Budget for the Financial Year 2024-25 revealed a record allocation of over Rs 6,21,540.85 crore to the Ministry of Defence.
This marks a significant increase of 4.72% compared to the previous fiscal year (FY 2023-24). The budget was presented by Finance Minister Nirmala Sitharaman in the Parliament on Thursday.
According to the Press Information Bureau (PIB), the Ministry of Defence (MoD) continues to receive the highest allocation among the ministries.
The budgetary allocation to Defence for FY 24-25 is higher by 18.35% than the allocation for FY 2022-23 and 4.72% more than the allocation for FY 23-24.
Of this, a major share of 27.67% goes to capital, 14.82% to revenue expenditure on sustenance and operational preparedness, 30.68% to Pay and allowances, 22.72% to defence pensions and 4.11% to civil organisations under MoD.
Upward trend continues in Defence Capital Expenditure promoting ‘Aatmanirbharta’ Budgetary allocation for capital expenditure in Defence for FY 24-25, a whopping 20.33% higher than the actual expenditure of FY 22-23 and 9.40% more than the Revised Allocation of FY 23-24.
The allocation is in line with the Long Term Integrated Perspective Plan (LTIPP) of the three Services aimed to fill the critical capability gaps through the modernisation of the Armed Forces by materialising some big-ticket acquisitions in FY 2024-25.
The enhanced budgetary allocation is aimed at facilitating in equipping the Armed Forces with state-of-the-art, niche technology lethal weapons, Fighter Aircraft, Ships, Platforms, Unmanned Aerial Vehicles, Drones, Specialist Vehicles, and more.
Planned modernisation of the existing Su-30 fleet along with additional procurement of aircraft, acquisition of advanced engines for existing MiG-29, acquisition of transport aircraft C-295 and missile systems will be funded out of the budget being allocated.
The ministry assures LCA MK–I IOC/FOC configuration to be additionally funded to ensure state-of-the-art technology in domestic production.
The Indian Navy projects such as the acquisition of Deck-based fighter aircraft, Submarines, Next generation survey vessels and more are hopeful of materialising through this allocation. The sizeable allocation under capital is centred around promoting ‘Aatmanirbharta’ in Defence.
The ministry shared plans that a large portion of the allocation will be utilised for procurement through domestic sources to provide a domestically manufactured next-generation weapon system to the country which will have a multiplier effect on the GDP, create employment, ensure capital formation and provide a stimulus to the domestic economy.
Allocation to the Armed Forces for revenue expenditure (Other than Salary) meant for sustenance and operational commitment for FY 24-25 continues to be high at Rs 92,088 crore, which is 48% higher than the budgetary allocation of FY 2022-23.
During the mid-year review, the allocation on this head was increased by 82% over the budgetary allocation of FY 22-23 crossing the figure of Rs 1 lakh crore for the first time.
The ministry stated that the continued higher allocation since FY 2023-24 in this head has resolved the grievance of the forces and has improved their sustenance & operational readiness.
Meanwhile, the total budgetary allocation on account of Defence pensions is Rs 1,41,205 crore which is 2.17% higher than the allocation made during 2023-24. It will be incurred on monthly pension to approximately 32 lakh pensioners through SPARSH and through other pension disbursing authorities.
Likewise, the total allocation to the Ex-Servicemen Welfare Scheme for FY 2024-25 is 28% higher than the allocation for FY 23-24, from Rs 5,431.56 crore to Rs 6,968 crore.
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In light of the continued threat perception faced at the Indo-China border, there continues a jump in the Capital Budget allocation to the Border Roads Organisation. The allocation for BE 2024-25 is Rs 6,500 crore, which is 30% higher than the allocation for FY 23-24 and 160% higher than the allocation for FY 2021-22.
The PIB stated that this indicates the commitment of the Government to improve border infrastructure. The financial provision made during the budget this year, will, apart from promoting strategic infrastructural development in the border areas, also boost socio-economic development in that region along with promoting tourism.
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