R-Day Spl: How much is India’s defense budget, how are these lakhs of crores spent on the army? Know everything…

There has been a surge in India’s defense budget in the last few years, the defense budget for the financial year 2024-25 has become Rs 6.22 lakh crore. India’s defense budget in 2014 was Rs 2.53 lakh crore. A comparison of these two budgets shows that defense expenditure has increased by about 2.5 times in these 10 years. The budgetary allocation excluding pension has increased by 8.6% compared to last year. If pension is included then this increase is 7.1%.

The Defense Ministry has been allocated Rs 6,21,940.85 crore (about US$75 billion) in the Union Budget for FY 2024-25, the highest among all ministries. The allocation to the Defense Ministry for the financial year 2024-25 is approximately Rs 1 lakh crore (18.43 percent) more than the allocation for the financial year 2022-23 and 4.79 percent more than the allocation for the financial year 2023-24. Of this, 27.66 per cent is for capital expenditure, 14.82 per cent is for revenue expenditure on sustenance and operational readiness, 30.66 per cent is for pay and allowances, 22.70 per cent is for defense pension and 4.17 per cent is for civilian organizations under the Ministry of Defence. Have taken. This total allocation is approximately 12.90 percent of the budgetary estimates of the Union of India.

In real terms, the budgetary allocation under capital head to the Defense Forces for the financial year 2024-25 is Rs 1.72 lakh crore, which is 20.33 percent more than the actual expenditure for the financial year 2022-23 and 9.40 percent more than the revised allocation for the financial year 2023-24. The percentage is high. The allocation is aimed at filling large capacity gaps through large acquisitions in the current and subsequent financial years. This increased budgetary allocation will meet the need for annual cash expenditure on capital acquisitions aimed at equipping the armed forces with state-of-the-art technology, lethal weapons, fighter aircraft, ships, submarines, platforms, unmanned aerial vehicles, drones, specialist vehicles etc. Will complete. The Defense Ministry has earmarked 75 percent of the modernization budget i.e. Rs 1,05,518.43 crore for procurement through domestic industries during this financial year. This will have a multiplier effect on GDP, employment generation and capital formation, thereby stimulating the economy.

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Sustained high allocation for operational readiness boosts the morale of the armed forces, with the sole objective of keeping them combat ready at all times. The government has allocated Rs 92,088 crore under this head during the current financial year, which is 48 percent more than the budgetary allocation for the financial year 2022-23. It aims to provide best-in-class maintenance facilities and support systems to all platforms including aircraft and ships. This will facilitate procurement of ammunition; It will strengthen the mobility of resources and personnel in line with the security situation and deployment in forward areas for any unexpected situation.

The government is adamant on improving border infrastructure by providing last mile connectivity in the border areas as well as by giving more allocations to agencies implementing strategically important projects. In this effort, a budgetary allocation of Rs 6,500 crore has been made to Border Roads Organizations (BRO) under capital for Budget Estimate 2024-25, which is 30 percent more than the allocation for financial year 2023-24 and 30 percent more than the allocation for financial year 2021-22. This is 160 percent more than the allocation.

The financial provisions made during the Budget this year will boost the development of strategic infrastructure in the border areas, as well as boost socio-economic development in the area. Development of Nyoma Airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to India’s southernmost Panchayat in Andaman and Nicobar Islands, 4.1 km strategically important Shinku La Tunnel in Himachal Pradesh, Nechiphu Tunnel in Arunachal Pradesh and many more. The projects will be funded from this allocation.

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The Indian Coast Guard (ICG) has been allocated Rs 7,651.80 crore for FY 2024-25, which is 6.31 percent more than the allocation for FY 2023-24. Of this, Rs 3,500 crore is to be spent only on capital expenditure, which will further strengthen the Indian Coast Guard’s arsenal to deal with emerging maritime challenges and provide humanitarian assistance to other countries. This allocation will facilitate the acquisition of high-speed patrol vehicles/interceptors, advanced electronic surveillance systems and weapons.

The budgetary allocation for the Defense Research and Development Organization (DRDO) has been increased from Rs 23,263.89 crore in FY 2023-24 to Rs 23,855 crore in FY 2024-25. Of this allocation, a major portion of Rs 13,208 crore has been allocated for capital expenditure. This will financially strengthen DRDO to develop new technologies with special focus on fundamental research and with the assistance of private parties through development and production partnerships. The allocation for the Technology Development Fund (TDF) scheme is Rs 60 crore which is specifically designed for new start-ups, MSMEs and academicians who are interested in developing innovation and high-tech young talents in collaboration with DRDO. Is tempting.

Government has increased the allocation on innovation in defense through IDEX from Rs 115 crore in the current financial year to Rs 518 crore during FY 2023-24, to enable start-ups/MSMEs/innovators to develop defence-tech solutions. There will be promotion and young talents can be invited.

Retaining the allocation made to the Defense Ministry during the interim Budget, the government has made an additional allocation of Rs 400 crore on innovation in the defense sector through the “Accelerating Development of Innovative Technologies with IDEX” (ADITI) scheme.

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Through this scheme, the Ministry of Defense is engaging with start-ups/MSMEs and innovators to develop defense technology solutions and provide innovative and indigenous technological solutions to the Indian Army. Funding up to 50 per cent of the product development budget will be provided with an enhanced limit (maximum) of Rs 25 crore per applicant as per extant IDEX guidelines.

The Government is committed to provide best healthcare facilities to ex-servicemen and their dependents through increased allocation for Ex-Servicemen Contributory Health Scheme (ECHS). ECHS has been allocated Rs 6,968 crore in the regular budget for financial year 2024-25, which is 28 percent more than the previous year’s allocation. A very high allocation was made in the revised estimates stage during FY 2023-24, when the allocation to ECHS was increased by 70 per cent more than the budget estimate.

The total budgetary allocation for defense pension is Rs 1,41,205 crore, which is 2.17 per cent higher than the allocation during 2023-24. This will be spent on the monthly pension of about 32 lakh pensioners through the Pension Administration System (Defence) or ‘SPARSH’ and other pension disbursing authorities.

 

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