Defence allocation in Union Budget 2024

Defence allocation in Union Budget 2024

As far as the allocation to Ministry of Defence in the Union budget is concerned allocation to the tune of Rs 6,21,940.85 Crore, which is 12.9 % of total Budget of GoI for FY 2024-25 has been done. This is an increase of 1.4% from last year budget and would only cater for increase in salaries and DA. The increase is not enough to take on major big ticket changes, and enhance R&D in defence.

The capital outlay of Rs 1,72,000 Crore will strengthen the capabilities of Armed Forces but is not something to really write home about. Earmarking of Rs, 1,05,518.43 Crore for domestic capital procurement will provide further impetus to indigenous industry.

Defence allocation in Union Budget 2024
Defence allocation in Union Budget 2024

Border Roads have been given 30% increase in allocation over the last budget. This allocation of Rs 6,500 Crore to BRO will further accelerate our Border Infrastructure. This is a major boost to defence infrastructure and will also help companies like L&T. This will help in rapid mobilisation of our forces towards the border with China.

To boost the startup ecosystem in Defence Industries, Rs 518 crore has been allocated to iDEX scheme to fund technological solutions given by startups, MSMEs and innovators. No talk about disinvestment of defence companies has been done as yet. Companies like Mazagon Shipyard and Cochin shipyard were to be disinvested so that private players could infuse fresh money in the system to facilitate mass production of ships for Indian Navy.

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