China And Pakistan In Mind, Defence Budget Of Rs 5.93 Lakh Crore Sees Over 13% Hike

Defence budget for fiscal 2023-24 saw an increase of about 13 per cent compared to financial year 2022-2023 as Modi govt puts more focus on ‘Make in India’ and strengthening border infra.

The defence budget was hiked at a time when some of India’s close strategic partners — from the US to Japan and Australia — witnessed a significant jump in allocations owing to an increasingly volatile global situation. ( Image Source :PTI )

In a major thrust towards the country’s national security, the Narendra Modi government increased the budget for defence by about 13 per cent to Rs 5.93 lakh crore for the financial year 2023-24, compared to Rs 5.25 lakh crore in 2022-23, keeping in mind the increasing threats from China and Pakistan.

The defence budget was hiked at a time when some of India’s close strategic partners — from the US to Japan and Australia — witnessed a significant jump in allocations owing to an increasingly volatile global situation.

While the defence budget saw a significant hike compared to last several budgets, the government’s much-touted modernisation programme did not see that much commensurate increase even as more focus was given on strengthening border infrastructure in the Himalayas owing to growing Chinese aggression.

Out of the overall allocation of Rs 5.93 lakh crore, the capital outlay stood at Rs 1.62 lakh crore, about 10 per cent hike from last year’s Rs 1.52 lakh crore, which is meant for procuring new and modern weaponry such as submarines, fighter jets, weaponised drones, guns, tanks and warships among others.

“The Ministry of Defence is committed towards infrastructure strengthening in the Border Areas, particularly the Northern Borders. Accordingly, the Capital Budget of Border Roads Organization (BRO) has increased by 43% to Rs 5,000 crore in FY 2023-24 as against Rs 3,500 crore in FY 2022-23,” Defence Minister Rajnath Singh said in a tweet.

According to the Ministry of Defence, the budget “sustained the thrust on modernisation and infrastructure development of the defence services, by continuing an upward trend in capital outlay”.

The ministry also said the armed forces "have to be battle ready to meet any eventuality”. Hence, it said the non-salary revenue outlay has been enhanced significantly from Rs 62,431 crore in Budget Estimates (BE) 2022-23 to Rs 90,000 crore in BE 2023-24, representing a 44% jump. 

“This expenditure is expected to close critical gaps in the combat capabilities and equip the Forces in terms of ammunition, sustenance of weapons & assets, military reserves etc,” it said.

'No Amount Of Increase Will Ever Be Sufficient', Unless...

The finance budget 2023-24 has a separate allocation of Rs 1,38,205 crore meant only for defence pensions. The total revenue expenditure including the pension outlay has been estimated at Rs 4,22,162 crore.

“It is a serious increase in defence budget but of course you will always have concerns that this is not good enough given the kind of security challenges India is facing. But ultimately, for a country like India with multiple requirements and multiple needs, the challenge is how can we use resources that are available most efficiently and that is the long-term challenge,” Harsh Pant, Professor of International Relations at King’s College and Vice President (Studies and Foreign Policy), Observer Research Foundation (ORF), told ABP Live. 

Pant added: “While one can look at the outlays, one has to look at how that outlay has been utilised by the end user. Therefore, one has to look at the changes that are being ushered in structurally in the system. If the three services, if civilian bureaucracy and the military do not synergise properly then I am afraid no amount of increase will ever be sufficient.”

In the last couple of years, the government has put more emphasis on domestic manufacturing of defence items under the ‘Atmanirbhar Bharat’ scheme while gradually reducing imports and focusing more on exports. 

Defence Minister Rajnath Singh had earlier India is now working towards increasing defence production from $12 billion in 2022 to $22 billion by 2025 by manufacturing fighter aircraft, aircraft carriers, main battle tanks and attack helicopters.