Union Budget 2024-25: Rs 6.22 Lakh Crore Allocated to Ministry of Defence

In the Regular Union Budget for FY 2024-25, the Ministry of Defence (MoD) has received an allocation of Rs 6,21,940.85 crore (approximately US $75 billion), marking the highest allocation among all ministries. This represents a 4.79% increase over the previous fiscal year (FY 2023-24) and an 18.43% increase compared to FY 2022-23. The budget focuses on promoting self-reliance in defence technology and manufacturing, equipping the Armed Forces with modern weapons and platforms, and enhancing operational readiness and veterans’ healthcare.

Key Allocation Details

Capital Expenditure: Rs 1.72 lakh crore allocated to Defence Forces under capital head, a 20.33% increase from FY 2022-23 and 9.40% more than FY 2023-24.

Operational Readiness: Rs 92,088 crore allocated for operational readiness, a 48% increase from FY 2022-23.

Veterans’ Healthcare: Rs 6,968 crore allocated to the Ex-Servicemen Contributory Health Scheme (ECHS), a 28% increase from the previous year.

Border Infrastructure: Rs 6,500 crore allocated to Border Roads Organisations (BRO) under capital for BE 2024-25, a 30% increase from FY 2023-24 and 160% higher than FY 2021-22.

Indian Coast Guard: Rs 7,651.80 crore allocated, a 6.31% increase over FY 2023-24.

Defence Research and Development Organisation (DRDO): Rs 23,855 crore allocated, with a major share for capital expenditure.

Defence Pensions: Rs 1,41,205 crore allocated, a 2.17% increase from FY 2023-24.

Innovation and Domestic Procurement

ADITI Scheme

An additional Rs 400 crore allocated for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme.

Domestic Procurement

75% of the modernization budget, amounting to Rs 1,05,518.43 crore, earmarked for procurement through domestic industries.

iDEX Funding

Increased from Rs 115 crore in FY 2023-24 to Rs 518 crore in FY 2024-25 to boost start-ups and MSMEs in developing defence technology solutions.

Strategic Projects and Infrastructure

• Border Infrastructure Projects: Development of Nyoma Airfield in Ladakh, permanent bridge connectivity in Andaman and Nicobar Islands, Shinku La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh, and other strategic projects funded from the budget.
• Coast Guard Enhancements: Rs 3,500 crore allocated for capital expenditure, facilitating acquisition of patrolling vehicles, surveillance systems, and weapons.

Support for Armed Forces and Veterans

Sustenance and Operational Preparedness

Rs 92,088 crore allocated to provide maintenance facilities, ammunition, and resource mobility.

Healthcare for Veterans

Enhanced allocation to ECHS ensures better healthcare facilities for veterans and their dependents.

Defence Pensions

Monthly pensions for approximately 32 lakh pensioners through the System for Pension Administration (Raksha) or SPARSH.