Budget 24: FM allocates ₹4,54,773 Crore to Defence, Down 0.24% from Last Year
Upstox
3 min read • Updated: February 1, 2024, 10:35 PM
Summary
In the Union Budget 2024-25, the defence sector receives ₹4,54,773 crore, marking a slight decrease of 0.24% from the previous fiscal year. The budget prioritizes operational and non-salary expenditures, aiming to enhance infrastructure near border regions and invest in research and development. Key allocations include funding for weapon systems, training, and innovations in defence technology. Additionally, provisions are made for veterans and their families through schemes like One Rank One Pension and the Ex-Servicemen Contributory Health Scheme. Overall, the budget reflects efforts to bolster national security and support defence personnel and their families.
Key Takeaways
- In the Union Budget 2024-25, the defence sector is allocated ₹4,54,773 crore, indicating a decrease of 0.24% over the budget of the previous fiscal year.
- A part of the defence budget is allocated to be spent on operational and non-salary expenditure.
The armed forces of our country are always prepared for any war or war-like eventuality that may occur. To this end, the Interim Budget for the fiscal year (FY) 2024-25 presented by the finance minister, Nirmala Sitharaman, for India highlights some key features and contributions towards defence that can redefine the country's security. In the Interim Budget 2024-25, the defence sector is allocated ₹4,54,773 crore indicating a decrease of 0.24% over the budget of the previous fiscal year.
Some of the key highlights of the budget announced for the year 2024-25 include increased non-salary and operational allocations, development and enhancing the infrastructure near border regions, enhancing the research and development division of defence to name a few.
Features of the Interim Budget for the Defence Sector
Currently, the budget allocated to the defence sector shows a decrease of 0.24%. However, this estimate announced in the interim budget may be expected to change during revision.
A majority of the defence budget is allocated to be spent on operational and non-salary expenditure. That is to say, this allocation will be used as funding for weapon systems, ships, aircraft, and training among other operational requirements. The budget shows a focus on operation allocations that were seen in the previous years.
In recognition of the critical role border infrastructure plays in the defence of a nation, the Budget has also decided to distribute the allocated amount on the Capital Budget of the Border Roads Organisation. Furthermore, to incorporate technology in the defence sector, the Budget has focused on Innovation for Defence Excellence and the Defence Testing Infrastructure Scheme. This provision will help ensure that the Defence Ministry’s vision to leverage India’s bright minds is achieved.
The provision of the Defence Pension Budget is made with keeping the ease of living in mind for the respected veterans of our country and their families under One Rank One Pension. In addition, the Interim Budget has allocated a part of the budget to the Ex-Servicemen Contributory Health Scheme (ECHS). This allocation to ECHS will ensure that our veterans and their dependents get the benefits of cashless health services as well as service delivery across the country. Overall, the budget plan for the Defence Sector looks promising and can lead to various developments in the fields of innovation as well as border infrastructure.
Conclusion
In conclusion, the finance minister’s allocations in the defence sector are expected to improve the country’s security and protection measures. While a significant portion of the allocation will be used as funding for weapon systems, ships, aircraft, training, etc., veterans and their families can also expect more support from the government. The tightening of border infrastructure will also boost security efforts in the country.