Union Budget: Defence Ministry Gets Rs 6.22 Lakh Cr, Focus On Border Infra

Union Finance Minister Nirmala Sitharaman has allotted Rs 6,21,940.85 crore for the defence sector in 2024-25, which is much the same as the interim Budget delivered in February. The sum set aside for the defence sector is slightly greater than the previous year, accounting for about 12.9 per cent of the total budget.

“The capital outlay of Rs 1,72,000 Crore will further strengthen the capabilities of the Armed Forces. Earmarking of Rs 1,05,518.43 Crore for domestic capital procurement will provide further impetus to Atmanibharta,” Defence Minister Rajnath Singh said on X.

Singh also said, “I am pleased that Border Roads have been given a 30 per cent increase in allocation over the last budget under the capital head. This allocation of Rs 6,500 Crore to BRO will further accelerate our Border Infrastructure.”

To boost the startup ecosystem in Defence Industries, Rs 518 crore has been allocated to the iDEX scheme to fund technological solutions given by startups, MSMEs and innovators.

The allocation of Rs 6.22 lakh crore for the defence sector is 4.79 per cent more than the Budget Estimates (BE) from last year. Of this, 27.66 per cent goes to capital; 14.82 per cent to revenue expenditure on sustenance and operational readiness; 30.66 per cent to pay and allowances; 22.7 per cent to defence pensions; and 4.17 per cent to civil organisations under the Ministry of Defence.

The government has allocated an additional Rs 400 crore for defence innovation through the Acing Development of Innovative Technologies with iDEX (ADITI) project while preserving the allocation granted to the MoD during the interim Budget. “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.”

Regarding the allocation to BRO, the Ministry stated that it will enhance strategic infrastructure development in border areas while also boosting socioeconomic growth in the region. This will help fund projects such as the Nyoma Airfield in Ladakh, which is at an elevation of 13,700 feet, a permanent bridge connecting India's southernmost panchayat 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, according to the Ministry.

The Indian Coast Guard (ICG) allocation for FY 2024-25 is Rs 7,651.80 crore, up 6.31 per cent from the previous year. “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 statement read.