NEW DELHI: Amidst the current geopolitical scenario and the tensions along the northern border with China, the defence budget allocated on Tuesday to the Ministry of Defence has been pegged at Rs 6,21,940.85 crore, which in real terms is an increase of Rs 400 crore.The interim Defence Budget approved in February was Rs 6,21,540.85 crore, which was increased by Rs 28,003.21 crore when compared to that of 2023-24.The Union Budget was presented by Finance Minister Nirmala Sitharaman in Parliament.The Defence Budget for 2023-24 was Rs 5,93,537.64 crore, an increase of around Rs 68,834 crore. It was Rs 5,25,166 crore for the year 2022-23.The budgetary allocation for capital expenditure in Defence for FY 24-25 is Rs 1.72 lakh crore, which is 20.33% higher than the actual expenditure of FY 22-23 and 9.40% more than the Revised Allocation of FY 23-24.The allocation is in line with the Long Term Integrated Perspective Plan (LTIPP) of the three Services aimed at filling the critical capability gaps through the modernisation of the Armed Forces by materialising some big-ticket acquisitions in FY 2024-25.The Capital Outlay in FY 2023-24 was increased by Rs 10,230.39 crore, which is a rise of 6.7%, to Rs 1,62,600 crore (was Rs 1,52,369.61 crore in 22-23). The same was increased by about 9.8% for the year 2022-23.Of the allocation this year, 27.67% goes to capital, 14.82% for revenue expenditure on sustenance and operational preparedness, 30.68% for pay and allowances, 22.72% for defence pensions, and 4.11% for civil organisations under MoD, the statement added. The Capital budget is spent on adding new weapons, systems, and equipment.The allocation to the Ministry of Defence (MoD) continues to be the highest among the Ministries.A large portion of the allocation will be utilised for procurement through domestic sources to provide domestically manufactured next-generation weapon systems to the country, which will have a multiplier effect on the GDP, create employment, ensure capital formation, and provide a stimulus to the domestic economy.The allocation to the Armed Forces for revenue expenditure (other than salary) meant for sustenance and operational commitment for FY 24-25 is Rs 92,088 crore.Total budgetary allocation on account of defence pensions is Rs 1,41,205 crore, which is 2.17% higher than the allocation made during 2023-24. It will be incurred on monthly pensions to approximately 32 lakh pensioners.
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