Finance Minister Nirmala Sitharaman announced the Union Budget for 2024-25, which includes a modest increase in the defence budget. The total allocation for the defence sector has been raised by INR 500 crore from the interim figures revealed earlier this year. The new budget sets the total defence allocation at INR 6,21,940 crore.
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Focus on Domestic Procurement
A significant portion of the budget is reserved for domestic procurement. Defence Minister Rajnath Singh confirmed that INR 1,05,518.43 crore will be spent on procuring equipment and services from Indian firms. This move is aimed at boosting self-reliance in defence, aligning with the government’s goal of “Atmanirbharta” or self-sufficiency.
Increase in Border Roads Organisation Funding
The Border Roads Organisation (BRO) sees a 30 percent increase in its capital allocation. This suggests a continued emphasis on enhancing infrastructure along the border, as well as investing in the latest machinery and technology to support border infrastructure projects.
Comparison with Previous Budget
Comparing this year’s budget to previous figures reveals a slight contraction. While the new budget allocation for 2024-25 is higher than the initial estimates of INR 5.93 lakh crore for the previous fiscal year, it is lower than the revised estimate of INR 6.23 lakh crore from the last fiscal year. This represents a decrease of 0.38 percent from the revised figures.
Capital Expenditure Overview
For capital expenditure, which focuses on modernising the military, the budget has increased to INR 1.72 lakh crore. Last year, the capital budget was revised down to INR 1.57 lakh crore due to unspent funds. This year’s allocation aims to enhance military capabilities through new systems and technologies.
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Spending Trends in the Military
The budget figures show varied spending trends among the armed forces. The Indian Air Force managed to spend more than its allocation, whereas both the Army and the Navy did not fully utilise their budgets.
The new budget reflects the government’s continued commitment to strengthening national defence while focusing on domestic procurement and infrastructure development.
About the Author
Mr. Radhesh Tarang Shah, is a management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
