Image Source : PTI The Defence allocation is considered a key sector of India’s Union Budget.
Budget 2025: Finance Minister Nirmala Sitharaman is set to present this year’s Union Budget on February 1. As the date is nearing, it has generated significant anticipation, particularly concerning the defence allocation. With national security challenges evolving and geopolitical tensions escalating, this year’s focus on bolstering India’s defence sector is both timely and crucial. With India’s security environment demanding heightened vigilance, stakeholders are urging the government to prioritise defence allocations in order to enable the armed forces to address both conventional and emerging challenges effectively.
Experts believe as India continues to grapple with threats along its northern borders and seeks to maintain stability in the Indian Ocean region, a robust defence allocation is need of the hour. Enhanced funding would support the procurement of advanced weaponry, the upgrading of existing systems, and the development of cutting-edge technology. Moreover, investments in defence infrastructure, such as border roads and coastal security, are crucial for ensuring rapid deployment and operational readiness, they opined.
A look at India’s defence allocation in budget 2024
In last year’s budget, the Union Finance Minister allocated Rs 6.22 lakh crore to defence, representing a 4.79% increase from the previous year. A significant portion of this funding was dedicated to modernising the armed forces, strengthening border infrastructure, and fostering indigenous defence manufacturing. With programs like the iDEX initiative driving innovation, the government outlined its commitment to achieving self-reliance in defence production.
Notably, Rs 1.72 lakh crore was earmarked for capital expenditure, including:
Rs 6,500 crore for border road infrastructure.
Rs 7,651 crore for coastal security.
Rs 518 crore under the iDEX scheme to promote innovation.
Breakdown of defence allocation 2024
The allocation to MoD for FY 2024-25 was higher by approximately Rs one lakh crore (18.43%) over the allocation for FY 2022-23 and 4.79% more than the allocation of FY 2023-24. Out of this, a share of 27.66% went to capital; 14.82% for revenue expenditure on sustenance and operational preparedness; 30.66% for Pay and Allowances; 22.70% for Defence Pensions, and 4.17% for civil organisations under MoD. The total allocation comes out as approximately 12.90% of the Budgetary Estimate of the Union of India.
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