Budget 2024: Defence Ministry Receives ₹6.22 Lakh Crore Budget Allocation

July 24, 2024

The government has allocated ₹6.22 lakh crore to the defence ministry, with a primary focus on capital acquisition amounting to ₹1.72 lakh crore, marking the largest budget allocation for defence in recent history. The capital outlay aims to improve the armed forces’ capabilities through the procurement of advanced weapon systems, including fighter aircraft, ships, submarines, drones, and specialist vehicles.

Specific Procurement Plans

Planned purchases include:

Aircraft Modernisation: Upgrades for the Su 30MKI fleet and additional acquisitions of the LCA Mk1A and C-295 transport aircraft.
Naval Expansion: Expected contracts for three new submarines from Mazagon Dockyards Ltd and 26 Rafale Marines from France.
Drone Acquisition: Long-range drones from the United States.

Flagship Schemes and Innovations

Key allocations include:

Agnipath Scheme: Increased funding from ₹4,266 crore to ₹5,979 crore to attract and retain armed forces personnel.
Innovative Defence Projects: The ADITI scheme has been allocated ₹400 crore to support innovative technology development, covering 50% of specific project budgets.

Infrastructure Development

The Border Roads Organisation (BRO) received a 30% budget increase to improve border infrastructure, with projects including:

Development of Nyoma airfield (Ladakh)
Shinku La tunnel (Himachal Pradesh)
Nechiphu tunnel (Arunachal Pradesh)

This comprehensive budget reflects a strategic focus on modernizing defence capabilities and enhancing national security infrastructure.

More About the Defence Budget

Many nations devote a sizeable portion of their budgets to military; for instance, the United States spends more than three percent of its gross domestic product on defence, whereas many NATO nations strive for two percent. Eastern European nations have seen the greatest increase in their military budgets in recent years as a direct result of the geopolitical tensions that have been present in those regions. Even though Japan’s constitution places restrictions on the country’s military budget, the country continues to be one of the highest spenders in Asia. In addition, many nations’ defense budgets are funded through non-traditional ways, such as the export of armaments or the sale of military hardware to other countries.

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