New Delhi: The government on Tuesday allocated Rs 6,21,940.85 crore (approximately US $75 billion) to the Ministry of Defence, marking the highest budgetary allocation.
In addition to maintaining the allocation from the interim budget, the Government has allocated an additional Rs 400 crore for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. This scheme engages with start-ups, MSMEs, and innovators to develop defence technology solutions and supply the Indian military with innovative and indigenous technological solutions. Grants of up to 50% of the Product Development Budget, with a maximum of Rs 25 crore per applicant, will be awarded as per iDEX guidelines.
The allocation for the Ministry of Defence (MoD) for FY 2024-25 is approximately Rs one lakh crore (18.43%) higher than for FY 2022-23 and 4.79% more than for FY 2023-24. Of this allocation, 27.66% is designated for capital expenditures, 14.82% for revenue expenditure on sustenance and operational preparedness, 30.66% for pay and allowances, 22.70% for defence pensions, and 4.17% for civil organisations under the MoD. This total allocation represents about 12.90% of the Union Budget’s estimated expenditure.
Promoting ‘Aatmanirbharta’ in Defence Technology and Manufacturing
The capital budget for the Defence Forces for FY 2024-25 is Rs 1.72 lakh crore, which is 20.33% higher than the actual expenditure for FY 2022-23 and 9.40% more than the revised allocation for FY 2023-24. This budget aims to address critical capability gaps through major acquisitions, equipping the Armed Forces with state-of-the-art technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, and specialist vehicles.
Strengthening Domestic Capacity
The MoD has earmarked 75% of the modernization budget, amounting to Rs 1,05,518.43 crore, for procurement through domestic industries. This will have a multiplier effect on GDP, employment generation, and capital formation, thereby stimulating the economy.
Enhanced Allocation for Sustenance and Operational Readiness
The Government has allocated Rs 92,088 crore for operational readiness for FY 2024-25, which is 48% higher than the allocation for FY 2022-23. This funding will provide the best maintenance facilities and support systems for all platforms, including aircraft and ships, facilitate ammunition procurement, and ensure the mobility of resources and personnel as demanded by the security situation.
Better Healthcare Facilities for Veterans
The Government is committed to providing the best healthcare facilities to veterans and their dependents through an enhanced allocation to the Ex-Servicemen Contributory Health Scheme (ECHS). For FY 2024-25, Rs 6,968 crore has been allotted to ECHS, which is 28% higher than the previous year’s allocation.
Bolstering Border Infrastructure
The Government is committed to improving border infrastructure with higher allocations to agencies executing strategically significant projects and providing last-mile connectivity in border areas. The budget for the Border Roads Organisation (BRO) under the capital head for FY 2024-25 is Rs 6,500 crore, which is 30% higher than the allocation for FY 2023-24 and 160% higher than for FY 2021-22.
Enhancing the Capability of the Indian Coast Guard
The allocation for the Indian Coast Guard (ICG) for FY 2024-25 is Rs 7,651.80 crore, a 6.31% increase over the allocation for FY 2023-24. Of this, Rs 3,500 crore is designated for capital expenditure to address emerging maritime challenges and provide humanitarian assistance.
Self-Reliance through Research and Innovation
The budget for the Defence Research and Development Organisation (DRDO) has been increased to Rs 23,855 crore for FY 2024-25 from Rs 23,263.89 crore in FY 2023-24. A major share of Rs 13,208 crore is allocated for capital expenditure to strengthen DRDO in developing new technology, focusing on fundamental research and partnering with private parties through the Development-cum-production partner program. The allocation for the Technology Development Fund (TDF) scheme stands at Rs 60 crore, designed for start-ups, MSMEs, and academia.
The allocation for innovation in defence through iDEX has increased from Rs 115 crore in FY 2023-24 to Rs 518 crore for the current fiscal year, boosting start-ups, MSMEs, and innovators in developing defence technology solutions.
Increased Defence Pension Budget
The total budget for defence pensions is Rs 1,41,205 crore, 2.17% higher than the allocation for FY 2023-24. This will cover monthly pensions for approximately 32 lakh pensioners through the System for Pension Administration (Raksha) or SPARSH and other pension disbursing authorities.
Defence Minister Shri Rajnath Singh described the budget as excellent and outstanding, contributing to a prosperous and self-reliant India. He expressed confidence that the capital outlay of Rs 1,72,000 crore will further strengthen the Armed Forces’ capabilities and support the goal of ‘Aatmanirbharta’ in defence.
