The Ministry of Defence (MoD) has been allocated a record Rs 6.22 lakh crore in the Regular Union Budget for the Financial Year 2024-25, marking the highest allocation among all ministries.
“While maintaining the allocation made to MoD during interim budget, the Government has made an additional allocation to the tune of Rs 400 crore on innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme,” as per a Ministry of Defence press release.
Finance Minister Nirmala Sitharaman announced an additional Rs 400 crore for innovation in defence through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme. This initiative aims to engage start-ups, MSMEs, and innovators in developing indigenous technological solutions for the Indian military.
The total allocation represents a significant increase of 18.43% over the previous fiscal year, with 27.66% earmarked for capital expenditure. The budget aims to promote self-reliance in defence technology and manufacturing while equipping the Armed Forces with modern weapons and platforms.
Under the capital head, Rs 1.72 lakh crore has been allocated to the Defence Forces, a 20.33% increase from the actual expenditure in FY 2022-23. The MoD has set aside 75% of the modernization budget, amounting to Rs 1,05,518.43 crore, for procurement through domestic industries.
The budget also addresses operational readiness with an allocation of Rs 92,088 crore, a 48% increase from FY 2022-23. This will support maintenance facilities, ammunition procurement, and resource mobility.
Veterans’ healthcare has received a boost with Rs 6,968 crore allocated to the Ex-Servicemen Contributory Health Scheme (ECHS), a 28% increase from the previous year.
This follows the significantly higher allocation at revised estimate stage during the FY 2023-24 when the allocation to ECHS was enhanced by 70% over BE, the Defence Ministry said.
The financial provision made during the budget this year will promote strategic infrastructure development in border areas, while boosting socio-economic development in that region. Projects such as development of Nyoma Airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost Panchayat of India in Andaman and Nicobar Islands, 4.1 km strategically-important Shinku La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.
The Indian Coast Guard’s allocation has increased by 6.31% to Rs 7,651.80 crore, while the Defence Research and Development Organisation (DRDO) will receive Rs 23,855 crore, with a major share for capital expenditure.
The government has significantly increased funding for defence innovation through iDEX, from Rs 115 crore in FY 2023-24 to Rs 518 crore in the current fiscal year, aiming to boost start-ups and MSMEs in developing defence technology solutions.
Total budgetary allocation on account of defence pensions is Rs 1,41,205 crore which is 2.17 per cent higher than the allocation made during 2023-24. It will be incurred on monthly pension to approx. 32 lakh pensioners through System for Pension Administration (Raksha) or SPARSH and through other pension disbursing authorities, the Defence Ministry said in the release.
(Inputs from ANI)