New Delhi: The Union finance minister, Nirmala Sitharaman, presented the Union Budget for the financial year 2024-25, on Tuesday. In the Budget, she allocated ₹6.22 lakh crore (approximately $75 billion) to the Ministry of Defence (MoD) in the Union Budget for the current fiscal year. This is a marginal increase of ₹400 crore allocated for defence from the interim budget before the country went for the general election in April.
Although there has been no substantial increase in the defence budget for the current fiscal, this marks the highest budgetary allocation among all ministries and represents a 4.71 per cent increase over the allocation for FY 2023-24.
The focus of the defence budget is on bolstering India’s military capabilities through increased spending on capital acquisition, domestic procurement, and border infrastructure development.
Key Highlights of Defence Budget 2024-25
Increased Allocation: The ₹6.22 lakh crore allocation is not a significant increase from the previous year’s allocation of ₹5.94 lakh crore after adjusting to inflation and depreciation of the rupee vis-a-vis the US dollar. Nonetheless, this increase reflects the government's commitment to continue modernizing the armed forces and ensure their preparedness for potential security threats is not diminished.
Focus on Capital Outlay: A significant portion of the budget has been allocated for capital expenditure, which pertains to the procurement of new weapons, equipment, and platforms for the armed forces. This increased spending aims to bridge the gap in India's military hardware and improve its overall defence capabilities.
Boost to Domestic Procurement: The budget prioritizes the procurement of defence equipment from domestic manufacturers. This initiative aligns with the government’s “Atmanirbhar Bharat” (self-reliant India) initiative, which aims to promote indigenous defence production and reduce dependence on foreign imports.
Strengthening Border Infrastructure: The budget allocates funds for developing critical infrastructure along India’s borders, including roads, bridges, and communication networks. This improved infrastructure will enhance the mobility and operational readiness of the armed forces in border areas.
Allocation Breakdown: The ₹6.22 lakh crore allocation is divided into various segments, with 27.66 per cent allocated for capital acquisition, 14.82 per cent for revenue expenditure on sustenance and operational preparedness, 30.66 per cent for pay and allowances, 22.70 per cent for defence pensions, and 4.17 per cent for civilian organizations under the defence ministry.
Although India Sentinels is yet to get the details of the total breakdown of allocations to each service – Indian Army, Indian Navy, and Indian Air Force, it may be mentioned that historically, the Army has received the largest share of the defence budget, followed by the Air Force and then the Navy. This is primarily due to the Army’s larger manpower and the extensive ground forces required for border management and internal security.
However, there has been a growing trend towards increasing allocations for the Air Force and Navy in recent years, reflecting the increasing importance of air and maritime power in India’s defence strategy.
The defence minister, Rajnath Singh, welcomed the budgetary allocation, stating that it would further strengthen country’s armed forces and provide impetus to the “Atmanirbhar Bharat” programme in the defence sector. This increased spending on defence reflects India’s growing military ambitions and its resolve to ensure national security in the face of evolving regional security threats.
