Union Budget 2024: Rajnath Singh Hails Rs 6.22 Lakh Cr Defence Allocation With Focus On ‘Atmanibharta’, Border Infra, Startups

Union Budget 2024: Rajnath Singh's remarks came after the Budget 2024-25 allocated Rs 6.21 lakh crore to the Ministry of Defence, a 4.79% increase from the previous year.

Union Defence Minister Rajnath Singh expressed gratitude to Finance Minister Nirmala Sitharaman for allocating Rs 6.21 lakh crore to the Ministry of Defence (MoD) in the Union Budget 2024-25. This amount, which constitutes 12.9% of the total budget for the fiscal year, marks the highest allocation among all ministries.

“The capital outlay of Rs 1,72,000 crore will further strengthen the capabilities of our Armed Forces. Earmarking Rs 1,05,518.43 crore for domestic capital procurement will provide a significant impetus to Atmanirbharta (self-reliance),” said Rajnath Singh. He also highlighted a 30% increase in allocation for border roads development, with Rs 6,500 crore dedicated to the Border Roads Organisation (BRO), aimed at accelerating border infrastructure projects.

The Union Budget presented by Finance Minister Nirmala Sitharaman on Tuesday in Parliament outlined that the defence sector would receive Rs 6,21,940.85 crore for FY 2024-25. This allocation remains consistent with the interim budget announced five months prior, maintaining defence at the top of sector-wise allocations.

Union Budget 2024: Budgetary Allocations For Defence

In a detailed statement, the Ministry of Defence elaborated on the budgetary allocations, noting a 4.79% increase from the previous fiscal year. Specific allocations include Rs 1.72 lakh crore for capital acquisition and Rs 92,088 crore for sustenance and operational readiness. The Defence Pension Budget has been increased to Rs 1.41 lakh crore, with Rs 6,968 crore earmarked for the Ex-Servicemen Contributory Health Scheme (ECHS). Additionally, Rs 7,651 crore has been allocated for coastal security.

To boost the startup ecosystem within the defence sector, the budget for the iDEX (Innovations for Defence Excellence) scheme has been significantly enhanced to Rs 518 crore from Rs 115 crore in the previous year. This increase aims to support technological solutions provided by startups, MSMEs, and innovators.

The statement highlighted that the allocation for the MoD is higher by approximately Rs 1 lakh crore (18.43%) compared to FY 2022-23, and 4.79% more than FY 2023-24. The allocation breakdown includes 27.66% for capital, 14.82% for revenue expenditure, 30.66% for pay and allowances, 22.70% for defence pensions, and 4.17% for civil organisations under the MoD.

The Defence Ministry emphasised the importance of modernising the forces, with a capital head allocation of Rs 1.72 lakh crore for FY 2024-25, 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. "The allocation is aimed to fill the critical capability gaps through  big ticket acquisitions in current and subsequent FYs. The enhanced budgetary allocation will fulfill the requirement of annual cash outgo on planned Capital acquisitions aimed at equipping the Armed forces with state-of-the-art niche technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, specialist vehicles etc," it stated.

The MoD has earmarked 75% of the modernisation budget for procurement through domestic industries, amounting to Rs 1,05,518.43 crore. This initiative is expected to have a multiplier effect on GDP, employment generation, and economic stimulation, as per the ministry.

For border infrastructure, Rs 6,500 crore has been allocated to the BRO, which is 30% higher than the previous year’s budget and 160% higher than FY 2021-22. This funding will support strategically significant projects, including the development of Nyoma Airfield in Ladakh and the Shinku La tunnel in Himachal Pradesh.

Furthermore, the Indian Coast Guard (ICG) has been allocated Rs 7,651.80 crore for FY 2024-25, with Rs 3,500 crore dedicated to capital expenditure. This funding will enhance the ICG’s capabilities to address maritime challenges and provide humanitarian assistance.

The budget also increased the allocation for the Defence Research and Development Organisation (DRDO) to Rs 23,855 crore, with a focus on developing new technology and supporting private sector collaboration. The Technology Development Fund (TDF) scheme received an allocation of Rs 60 crore, designed to attract startups, MSMEs, and academia to innovate in defence technology.