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Defence Minister Rajnath Singh lauds FY 2024-25 Budget for its substantial allocation to the Ministry of Defence and initiatives to foster innovation, self-reliance, and economic growth.
Key Points
- Defence Minister Rajnath Singh commends the FY 2024-25 Budget for its support in achieving a prosperous Viksit Bharat.
- The Ministry of Defence receives the highest allocation among ministries, totaling Rs 6,21,940.85 crore.
- Significant investments in innovation, infrastructure, and modernization aimed at boosting defence capabilities and self-reliance.
- Enhanced budget for operational readiness, healthcare for veterans, and border infrastructure.
- Focus on promoting domestic procurement and fostering industry partnerships.
Defence Minister Rajnath Singh has hailed the full-year Budget for FY 2024-25 as a landmark move towards achieving a prosperous and self-reliant ‘Viksit Bharat’. The budget, presented by Finance Minister Nirmala Sitharaman, allocates a record Rs 6,21,940.85 crore to the Ministry of Defence, the highest among all ministries. Singh emphasized that this budget, inspired by Prime Minister Narendra Modi‘s vision of inclusive and fast-paced development, will accelerate India’s economic transformation and contribute significantly to making the country a $5 trillion economy by 2027.
One of the key highlights of the budget is the additional allocation of Rs 400 crore under the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. This initiative aims to engage startups, MSMEs, and innovators to develop advanced defence technologies, offering grants of up to 50% of the product development budget, with a maximum limit of Rs 25 crore per applicant.
The budget for FY 2024-25 represents an 18.43% increase over the allocation for FY 2022-23 and a 4.79% rise compared to FY 2023-24. Of the total allocation, 27.66% is dedicated to capital expenditure, 14.82% to revenue expenditure for sustenance and operational preparedness, 30.66% for pay and allowances, 22.70% for defence pensions, and 4.17% for civil organizations under the Ministry of Defence.
In absolute terms, the budgetary allocation under the capital head for the Defence Forces stands at Rs 1.72 lakh crore, a 20.33% increase over the actual expenditure of FY 2022-23 and a 9.40% rise over the revised allocation for FY 2023-24. This allocation aims to address critical capability gaps through significant acquisitions, including state-of-the-art technology, lethal weapons, fighter aircraft, ships, submarines, unmanned aerial vehicles, and specialist vehicles.
The Ministry of Defence has earmarked 75% of the modernization budget, amounting to Rs 1,05,518.43 crore, for procurement through domestic industries. This initiative is expected to have a multiplier effect on GDP, employment generation, and capital formation, providing a significant boost to the economy.
The budget also includes a substantial allocation for operational readiness, with Rs 92,088 crore set aside for the current fiscal year, representing a 48% increase over the budgetary allocation for FY 2022-23. This allocation aims to provide the best maintenance facilities and support systems for all platforms, ensuring that the Armed Forces remain battle-ready at all times.
In terms of healthcare for veterans, the government has increased the allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) to Rs 6,968 crore, a 28% rise over the previous year’s allocation. This follows a significant increase at the revised estimate stage during FY 2023-24, when the allocation to ECHS was enhanced by 70%.
The government remains committed to improving border infrastructure, with a budgetary allocation of Rs 6,500 crore for the Border Roads Organisation (BRO), representing a 30% increase over FY 2023-24 and a 160% rise over FY 2021-22. This allocation will support strategically significant projects such as the development of Nyoma Airfield in Ladakh, permanent bridge connectivity in the Andaman and Nicobar Islands, and the construction of crucial tunnels in Himachal Pradesh and Arunachal Pradesh.
The Indian Coast Guard (ICG) also sees an enhanced allocation of Rs 7,651.80 crore for FY 2024-25, with Rs 3,500 crore earmarked for capital expenditure. This will facilitate the acquisition of advanced patrolling vehicles, electronic surveillance systems, and weapons to address emerging maritime challenges.
The Defence Research and Development Organisation (DRDO) receives an increased allocation of Rs 23,855 crore, with a significant portion dedicated to capital expenditure. This funding will support the development of new technologies and foster collaboration with private parties through the Technology Development Fund (TDF) scheme, which has been allocated Rs 60 crore.
Overall, the FY 2024-25 Budget demonstrates a strong commitment to enhancing India’s defence capabilities, promoting self-reliance, and driving economic growth through strategic investments and innovation.
