New Delhi, July 23 (UNI) The Government on Tuesday allocated a Budget of Rs 6,21,940.85 crore (approximately US $75 Billion) to the Ministry of Defence, the highest among the Ministries.
While maintaining the allocation made to MoD during interim budget, the Government has made an additional allocation to the tune of Rs 400 crore on innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme.
The allocation to MoD for FY 2024-25 is higher by approximately Rs one lakh crore (18.43%) over the allocation for FY 2022-23 and 4.79 percent more than allocation of FY 2023-24. Out of this, a share of 27.66 percent goes to capital; 14.82 percent for revenue expenditure on sustenance and operational preparedness; 30.66 percent for Pay and Allowances; 22.70 percent for Defence Pensions, and 4.17 percent for civil organisations under MoD.
The total allocation comes out as approximately 12.90 percent of Budgetary Estimate of Union of India, a Defence Ministry statement said.
In absolute terms, budgetary allocation under capital head to the Defence Forces for FY 2024-25 is Rs 1.72 lakh crore, which is 20.33 percent higher than the actual expenditure of FY 2022-23 and 9.40 percent 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.
Moreover, Rs 6,968 crore has been allotted to ECHS which is 28 percent higher than the previous year allocation. This follows the significantly higher allocation at revised estimate stage during the FY 2023-24 when the allocation to ECHS was enhanced by 70 percent over BE.
Besides, the budgetary allocation to Border Roads Organisations (BRO) under capital for Budget Estimates (BE) 2024-25 has been made as Rs 6,500 crore, which is 30 percent higher than the allocation for FY 2023-24, and 160 percent higher than over the allocation of FY 21-22.
The financial provision made during the budget this year will promote strategic infrastructure development in border areas, while boosting socio-economic development in that region.
Projects such as development of Nyoma Airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost Panchayat of India in Andaman and Nicobar Islands, 4.1 km strategically-important Shinku La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.
The allocation to the Indian Coast Guard (ICG) for this FY 2024-25 is Rs 7,651.80 crore, which is 6.31% higher over the allocation of FY 2023-24. Out of this, Rs 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 budgetary allocation to Defence Research and Development Organisation (DRDO) has been increased to Rs 23,855 crore in FY 2024-25 from Rs 23,263.89 crore in FY 2023-24.
The Government has increased the allocation on innovation in defence through iDEX from Rs 115 crore during FY 2023-24 to Rs 518 crore in the current fiscal year, which will boost start-ups/MSMEs/innovators in developing Def-Tech solutions and invite young ignited minds.
The total budgetary allocation on account of defence pensions is Rs 1,41,205 crore which is 2.17 percent higher than the allocation made during 2023-24. It will be incurred on monthly pension to approx. 32 lakh pensioners through System for Pension Administration (Raksha) or SPARSH and through other pension disbursing authorities.
