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The Interim Union Budget for the fiscal year 2024-25 has witnessed a historic allocation of over Rs 6.21 lakh crore to the Ministry of Defence, reflecting a 4.72% increase from the previous fiscal year. Presented by Finance Minister Smt Nirmala Sitharaman in Parliament on February 1, 2024, this substantial allocation signifies the government’s commitment to fortifying national security and promoting self-reliance, in line with Prime Minister Modi’s visionary ‘Viksit Bharat.’
Of the total Defence budget, Rs 1.72 lakh crore, equivalent to 27.67%, has been dedicated to capital acquisition. Simultaneously, the Armed Forces’ revenue expenditure, excluding salaries, stands at Rs 92,088 crore, highlighting a comprehensive approach to ensure both modernization and operational preparedness.
The Defence Pension Budget has seen a noteworthy increase, reaching Rs 1.41 lakh crore. This commitment underscores the government’s responsibility to approximately 32 lakh pensioners, distributed through SPARSH and other pension disbursing authorities.
Strategically, Rs 6,500 crore has been allocated to fortify border infrastructure, addressing ongoing challenges at the Indo-China border. Additionally, the Indian Coast Guard receives Rs 7,651.80 crore, with Rs 3,500 crore earmarked for capital expenditure. These allocations emphasize the government’s commitment to maritime security and humanitarian assistance.
A notable enhancement is the increased budgetary allocation to the Defence Research and Development Organisation (DRDO), reaching Rs 23,855 crore. This substantial allocation aims to boost technological advancements and innovation in defence, fostering self-reliance.
An unprecedented Rs one lakh crore corpus has been earmarked for Deep Tech, providing long-term loans to youth and companies. This initiative is designed to stimulate innovation and technological development in the defence sector.
The ‘Interim Budget’ has been lauded by Raksha Mantri Shri Rajnath Singh for outlining the government’s vision of a confident, strong, and self-reliant ‘Viksit Bharat.’ Singh notes the significant focus on infrastructure, construction, manufacturing, housing, and technology development in the budget, aligning with the Prime Minister’s ‘Panchamrit Goals.’ This budget not only addresses immediate Defence needs but also paves the way for unprecedented growth over the next five years.
The upward trend in Defence Capital Expenditure, reaching Rs 1.72 lakh crore, underlines a commitment to ‘Aatmanirbharta.’ The allocation supports the Long Term Integrated Perspective Plan, aiming to fill critical capability gaps and modernize the Armed Forces with state-of-the-art technology, aircraft, ships, and unmanned systems.
The promotion of ‘Make in India’ is evident, with allocations supporting the domestic production of advanced weapon systems. The consolidated approach to jointness among services and flexibility in financial management demonstrates a strategic focus on optimal fund utilization and expedited decision-making.
As per the Economic Survey of India report in 2023, the investment multiplier in the ship-building sector is around 1.82, indicating that an infusion of approximately Rs 1.5 lakh crore in naval ship-building projects would result in a circulation of Rs 2.73 lakh crore in the sector.
The 2024-25 Interim Union Budget for Defence reflects a holistic strategy that not only addresses immediate security needs but also promotes self-reliance, innovation, and economic growth in line with the nation’s developmental goals.