Skip to content
  • Facebook
  • X
  • Linkedin
  • WhatsApp
  • YouTube
  • Associate Journalism
  • About Us
  • Privacy Policy
  • 033-46046046
  • editor@artifex.news
Artifex.News

Artifex.News

Stay Connected. Stay Informed.

  • Breaking News
  • World
  • Nation
  • Sports
  • Business
  • Science
  • Entertainment
  • Lifestyle
  • Toggle search form
  • Access Denied Business
  • Access Denied
    Access Denied Nation
  • Nations League: Cristiano Ronaldo Strikes Late To Seal Portugal Win Over Scotland
    Nations League: Cristiano Ronaldo Strikes Late To Seal Portugal Win Over Scotland Sports
  • A Message To BCCI? Ishan Kishan’s 2-Word Post After Duleep Trophy Ton
    A Message To BCCI? Ishan Kishan’s 2-Word Post After Duleep Trophy Ton Sports
  • Donald Trump asks Supreme Court to block sentencing in his hush money case in New York
    Donald Trump asks Supreme Court to block sentencing in his hush money case in New York World
  • IIT Researchers Discover How Animals Find Their Way Home, Using Robots
    IIT Researchers Discover How Animals Find Their Way Home, Using Robots Nation
  • “Maze Lene Do Unko…”: Rohit Sharma Mocks Test Rivals Ahead Of Bangladesh Series
    “Maze Lene Do Unko…”: Rohit Sharma Mocks Test Rivals Ahead Of Bangladesh Series Sports
  • AFC Champions League Two – The Hindu
    AFC Champions League Two – The Hindu Sports
Union Budget 2025: Defence budget falls short of expectations

Union Budget 2025: Defence budget falls short of expectations

Posted on February 1, 2025 By admin


The Union Budget 2025-26 earmarked ₹6.81 lakh crore — or 13.4% of total Central government expenditure — for the Ministry of Defence (MoD). Of the MoD’s total budget, ₹4.92 lakh crore, or 72%, is meant for the Defence Services (primarily the Army, Navy, Air Force and the Defence Research and Development Organisation).

About ₹1.61 lakh crore — amounting to 24% of the MoD’s total outlays — is provisioned to meet the pensionary expenses of the defence services; and the balance ₹28,683 crore, or 4%, to cater for the ‘civil organisations’ of the MoD, which include, inter alia, the Border Roads Organisation and the Indian Coast Guard.

Coming in the backdrop of a volatile regional and global security environment, the MoD’s budget and its distribution among various heads, evokes several pertinent questions, including about its adequacy to meet the needs of the defence forces and its impact on indigenisation that the Modi government pursues through its flagship ‘Make in India’ initiative.

On the question of adequacy, the MoD’s budget falls short of expectations. Although the MoD’s budget has been hiked by a decent 9.53%, much of the hike will be neutralised by the prevailing inflation (about 5%) and a weakening domestic currency vis-à-vis the U.S. dollar.

Little freedom

To further compound the problems of high inflation and a depreciating rupee, the MoD budget has little freedom to improve the firepower of the defence forces. Historically the defence budget has been dominated by the manpower cost. The salary and pension in the MoD’s latest budget accounts for 53%, leaving the balance to thinly spread on a host of other critical items of expenditure which are vital for modernisation and operational preparedness of the armed forces.

The capital expenditure of the defence services, much of which is spent on capital acquisitions and is vital for defence modernisation, has been pegged at ₹1.8 lakh crore — an increase of 4.7%. Notably this marginal increase has come after over 7% reduction in the previous capital budget.

The under-utilisation of previous budget and marginal increase in the capital expenditure will slow down the modernisation and indigenisation process going forward. Nonetheless, the MoD plans to sign several mega contracts, including for long endurance drones, deck-based fighters and next-generation submarines in the coming fiscal year, while sticking to the same indigenisation plan as articulated in the previous budget. To promote Make in India in defence, the MoD has earmarked 75% of its new capital procurement budget of ₹1.49 crore for procurement from the domestic industry, with 25% the domestic share being reserved for the Indian private sector.

While a big share for the domestic industry is a welcome step, to put both the modernisation and indigenisation on a fast track, the MoD requires a much bigger kitty than it has got in the successive union budgets. As a percentage of the Gross Domestic Product (GDP), the MoD’s latest budget amounts to a just 1.9% — a share too low for a country that faces two nuclear rivals. The government urgently needs to step up its spending on defence to at least 2.5% of GDP in the near- to medium-term and to 3% thereafter for a credible defence.

(The author is Associate Professor at the Special Centre for National Security Studies, Jawaharlal Nehru University, New Delhi.)

Published – February 02, 2025 01:47 am IST



Source link

Business Tags:border roads organisation, Defence budget falls short of expectations, defence sector, Indian Coast Guard, union budget 2025, Union Budget 2025-26

Post navigation

Previous Post: The social sector is again the target of spending cuts
Next Post: Agriculture is fiscally neglected in the Budget

Related Posts

  • Access Denied Business
  • Union Budget 2025: Government banks on asset monetisation to spur growth
    Union Budget 2025: Government banks on asset monetisation to spur growth Business
  • GST Council lifts tax blockages for rupee trade 
    GST Council lifts tax blockages for rupee trade  Business
  • WeWork India to float ₹3,000-crore IPO on October 3
    WeWork India to float ₹3,000-crore IPO on October 3 Business
  • Boeing factory workers on strike after rejecting contract offer
    Boeing factory workers on strike after rejecting contract offer Business
  • Access Denied Business

More Related Articles

‘Very sweet’ variety gives fresh hope to Pineapple farmers in Kerala ‘Very sweet’ variety gives fresh hope to Pineapple farmers in Kerala Business
MSMEs need funds for tech upgrades, green transition MSMEs need funds for tech upgrades, green transition Business
‘Govt is with you, do not worry’: MSME Ministry official assures industry ‘Govt is with you, do not worry’: MSME Ministry official assures industry Business
Rupee falls 6 paise to 88.72 against U.S. dollar in early trade Rupee falls 6 paise to 88.72 against U.S. dollar in early trade Business
Access Denied Business
Access Denied Business
SiteLock

Archives

  • September 2026
  • August 2026
  • July 2026
  • June 2026
  • May 2026
  • April 2026
  • March 2026
  • February 2026
  • January 2026
  • December 2025
  • November 2025
  • October 2025
  • September 2025
  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022

Categories

  • Business
  • Nation
  • Science
  • Sports
  • World

Recent Posts

  • Iran shuts language centre linked to French embassy
  • Police arrest 12 bus drivers for ‘vandalism’ as DTC drivers’ protest over higher wages enters Day 6
  • ‘Stop Vizag Data Centers’ Instagram account blocked in India
  • Once described as BIMARU, U.P. transformed as country’s growth engine, says CM Yogi
  • Chandni Chowk’s Town Hall to be developed as ‘Global Heritage Centre’: CM

Recent Comments

  1. LarryKef on UP Teacher Who Asked Students To Slap Muslim Classmate
  2. Josephjab on UP Teacher Who Asked Students To Slap Muslim Classmate
  3. LarryKef on UP Teacher Who Asked Students To Slap Muslim Classmate
  4. Jasonnekly on UP Teacher Who Asked Students To Slap Muslim Classmate
  5. Jasonnekly on UP Teacher Who Asked Students To Slap Muslim Classmate
  • Spain VS Belgium, FIFA World Cup quarterfinals: Belgium’s Ketelaere scores 1-1 against Spain
    Spain VS Belgium, FIFA World Cup quarterfinals: Belgium’s Ketelaere scores 1-1 against Spain Sports
  • Access Denied Sports
  • WHO lists mpox vaccine by Japan’s KM Biologics for emergency use
    WHO lists mpox vaccine by Japan’s KM Biologics for emergency use World
  • 25-Day-Old Infant, Sold By Father For Rs 30,000, Rescued In Assam
    25-Day-Old Infant, Sold By Father For Rs 30,000, Rescued In Assam Nation
  • Amid Koh-i-Noor remark, Mamdani facing criticism over ‘rude’ welcome to King Charles III
    Amid Koh-i-Noor remark, Mamdani facing criticism over ‘rude’ welcome to King Charles III World
  • Access Denied
    Access Denied Nation
  • Child Among 3 Of Family Killed In Nepal Plane Crash
    Child Among 3 Of Family Killed In Nepal Plane Crash Nation
  • “Don’t Think Rohit Has Been Superior As Captain”: Graeme Swann’s Debate-Stirring Statement
    “Don’t Think Rohit Has Been Superior As Captain”: Graeme Swann’s Debate-Stirring Statement Sports

Editor-in-Chief:
Mohammad Ariff,
MSW, MAJMC, BSW, DTL, CTS, CNM, CCR, CAL, RSL, ASOC.
editor@artifex.news

Associate Editors:
1. Zenellis R. Tuba,
zenelis@artifex.news
2. Haris Daniyel
daniyel@artifex.news

Photograher:
Rohan Das
rohan@artifex.news

Artifex.News offers Online Paid Internships to college students from India and Abroad. Interns will get a PRESS CARD and other online offers.
Send your CV (Subjectline: Paid Internship) to internship@artifex.news

Links:
Associate Journalism
About Us
Privacy Policy

News Links:
Breaking News
World
Nation
Sports
Business
Entertainment
Lifestyle

Registered Office:
72/A, Elliot Road, Kolkata - 700016
Tel: 033-22277777, 033-22172217
Email: office@artifex.news

Editorial Office / News Desk:
No. 13, Mezzanine Floor, Esplanade Metro Rail Station,
12 J. L. Nehru Road, Kolkata - 700069.
(Entry from Gate No. 5)
Tel: 033-46011099, 033-46046046
Email: editor@artifex.news

Copyright © 2023 Artifex.News Newsportal designed by Artifex Infotech.