The Ministry of Defence (MoD) has been allocated Rs 6,21,940.85 crore (approximately $75 billion) in the Regular Union Budget for Financial Year 2024-25, making it the highest allocation among all ministries. This marks an increase of 4.79% over the previous year’s allocation.
The allocation is aimed at promoting ‘Aatmanirbharta’ in defence technology and manufacturing, equipping the Armed Forces with modern weapons and platforms, and creating job opportunities for the youth.
Key highlights of the allocation include:
Rs 1.72 lakh crore for capital acquisition, which is 20.33% higher than the actual expenditure of FY 2022-23 and 9.40% more than the Revised Allocation of FY 2023-24.
Rs 92,088 crore for sustenance and operational readiness, which is 48% higher than the budgetary allocation of FY 2022-23.
Defence Pension Budget increased to Rs 1.41 lakh crore, which is 2.17% higher than the allocation made during 2023-24.
Rs 6,968 crore earmarked for Ex-Servicemen Contributory Health Scheme (ECHS), which is 28% higher than the previous year’s allocation.
Rs 6,500 crore allocated for border roads development, which is 30% higher than the allocation for FY 2023-24.
Rs 7,651 crore for coastal security, which is 6.31% higher over the allocation of FY 2023-24.
Budgetary allocation for iDEX enhanced to Rs 518 crore to promote innovation.
The Defence Research and Development Organisation (DRDO) has received a budgetary allocation of Rs 23,855 crore for the financial year 2024-25, marking an increase from Rs 23,263.89 crore in the previous year. A significant portion of this allocation, Rs 13,208 crore, is earmarked for capital expenditure, enabling DRDO to focus on developing cutting-edge technologies through fundamental research and collaborative partnerships with private entities.
Furthermore, the Technology Development Fund (TDF) scheme has been allocated Rs 60 crore, specifically designed to support new start-ups, MSMEs, and academia. This initiative aims to attract young innovators and develop niche technologies in collaboration with DRDO, fostering a culture of innovation and research.
Raksha Mantri Rajnath Singh has termed the budget as “excellent and outstanding”, stating that it will help move towards a prosperous and self-reliant ‘Viksit Bharat’. He added that the budget will accelerate the country’s economic transformation and help achieve the goal of making India a $5 trillion economy by 2027.