New Delhi. The government on Tuesday allocated Rs 6,21,940 crore for defence expenditure in 2024-25, almost equal to the amount allocated in the interim budget, amid concerns over the ongoing border dispute with China in eastern Ladakh as well as the emerging security situation in strategic waterways. The total allocation for the defence sector in the interim budget presented in February was Rs 6,21,540 crore.
The total allocation for the defence sector is 4.79 per cent higher than the budgetary provision made in 2023-24. The army will be given Rs 1,72,000 crore for capital expenditure which mainly includes the purchase of new armaments, aircraft, warships and other military equipment. Revenue expenditure for daily operating costs and salaries has been set at Rs 2.82 lakh crore, while Rs 1,41,205 crore has been marked for defence pension, which is 2.17 per cent higher than the allocation made in 2023-24. The total budget of the defence sector for the financial year 2024-25 is 12.9 per cent of the total budget of the Government of India.
On capital outlay, the Defence Ministry said the allocation is aimed at bridging the large capacity gap through major acquisitions in the current and subsequent financial years. It said, “This increased budgetary allocation will meet the annual cash expenditure requirement on capital acquisitions aimed at equipping the armed forces with cutting-edge technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, specialist vehicles etc.” The Defence Ministry has set aside 75 per cent of the modernisation budget, i.e. Rs 1,05,518.43 crore, for procurement through domestic industries during this financial year.
The Defence Ministry said in a statement, “In real terms, the budgetary allocation to the defence forces under the capital head for the financial year 2024-25 is Rs 1.72 lakh crore, which is 20.33 per cent more than the actual expenditure of the financial year 2022-23 and 9.40 per cent more than the revised allocation for the financial year 2023-24.” He said, “Continuously high allocation for operational readiness boosts the morale of the armed forces, whose sole objective is to keep them ready for war at all times. The government has allocated Rs 92,088 crore in this item during the current financial year. ” Defence Minister Rajnath Singh said that the allocation of Rs 1,05,518 crore for domestic capital procurement will further accelerate self-reliance in the defence sector.
Singh wrote on the social media platform ‘X’, “As far as allocation for the Ministry of Defense is concerned, I thank Finance Minister Nirmala Sitharaman for the highest allocation of Rs 6,21,940.85 crore which is 12.9 percent of the total budget of the government for 2024-25.” He said, “Capital outlay of Rs 1,72,000 crore will further strengthen the capabilities of the armed forces. Provision of Rs 1,05,518.43 crore for domestic capital procurement will further promote self-reliance.”
Singh said, “I am happy that 30 percent more allocation has been made for the Border Roads Organisation in the capital item as compared to the previous budget. This allocation of Rs 6,500 crore to BRO will give further impetus to our border infrastructure.” He said that inspired by Prime Minister Narendra Modi’s vision of inclusive and fast-paced development, this budget will accelerate the country’s economic transformation. He said that this will prove to be very helpful in making India a 5 trillion US dollar economy by 2027.