Budget 2024: Defence gets more at ₹6.22 lakh crore, boost for BRO’s projects

Army tanks and other weapon systems being showcased during the 72nd Republic Day parade at Rajpath, in New Delhi. File
| Photo Credit: PTI

Union Finance Minister Nirmala Sitharaman allocated ₹6.22 lakh crore for the defence sector in 2024-25 which is almost the same as in the interim Budget presented in February. At approximately 12.90% of the total Budget, the fund earmarked for the defence sector is marginally higher than last year.

“The capital outlay of ₹1,72,000 Crore will further strengthen the capabilities of Armed forces. Earmarking of ₹1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanirbharta,” Defence Minister Rajnath Singh said on ‘X’. He said he was pleased that Border Roads Organisation had got a 30% increase in allocation over the last Budget. This allocation of ₹6,500 crore to BRO would further accelerate the border Infrastructure, he stated.

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The allocation of ₹6.22 lakh crore for the defence sector is 4.79% higher compared to the Budget Estimates (BE) of last year. Of this, a share of 27.66% goes to capital; 14.82% for revenue expenditure on sustenance and operational preparedness; 30.66% for pay and allowances; 22.70% for defence pensions, and 4.17% for civil organisations under MoD.

While maintaining the allocation made to the Ministry of Defence (MoD) during the interim Budget, the government has made an additional allocation of ₹400 crore on innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, the Ministry said. “Through this scheme, MoD is engaging with start-ups/MSMEs and innovators to develop Def-Tech solutions and supply the Indian military with innovative and indigenous technological solutions.”

A grant of up to 50% of Product Development Budget with enhanced limit of ₹25 crore per applicant will be awarded as per extant iDEX guidelines.

On the allocation to BRO, the Ministry said it will promote strategic infrastructure development in border areas, while boosting socio-economic development in that region. This will help fund projects such as Nyoma Airfield in Ladakh, at an altitude of 13,700 feet, permanent bridge connectivity to southernmost panchayat of India in the Andaman and Nicobar Islands, the 4.1 km strategically-important Shinku La tunnel in Himachal Pradesh, the Nechiphu tunnel in Arunachal Pradesh and several other similar projects, the Ministry said.

The allocation to the Indian Coast Guard (ICG) for FY 2024-25 is ₹7,651.80 crore, which is 6.31% higher than the previous year. “Out of this, ₹3,500 crore is to be incurred only on capital expenditure, adding teeth to the arsenal of ICG for addressing the emerging maritime challenges and providing humanitarian assistance to other nations,” the statement added.