NEW DELHI: There was no big bang for the armed forces, with the defence outlay registering just a meagre 4.8% hike over the previous fiscal’s budgetary estimates and actually going into the negative if revised estimates are taken into account.
The overall defence budget was pegged at Rs 6.2 lakh crore ($74 billion), virtually the same as in the interim budget in Feb, despite the ever-growing threat from China and its continuing help to build Pakistan’s military capabilities to bog down India in the subcontinent.
The capital expenditure of Rs 1.7 lakh crore for military modernization did register a 5.8% hike over last year’s budgetary estimates and 9.4% over the revised ones. “The allocation is aimed to fill the critical capability gaps through big ticket acquisitions in current and subsequent fiscals,” an official said.
But the capital outlay was dwarfed by the revenue outlay of Rs 2.8 lakh crore for day-to-day operating costs and salaries of the over 14-lakh strong armed forces and defence civilians. Of it, Rs 92,088 crore is for operational sustenance and readiness.
The overall defence allocation, however, works out to just 1.9% of the projected GDP for 2024-25 if the huge defence pension allocation of Rs 1.4 lakh crore for the 32 lakh ex-servicemen and retired defence civilians is considered. It drops to less than 1.5% if the pension bill is excluded. This when experts say at least 2.5% is needed to deal with the threat from China and Pakistan, which is often collusive.
Defence minister Rajnath Singh, on his part, said the defence allocation was 12.9% of total government budget for 2024-25. With 75% (slightly over Rs 1 lakh crore) of the Rs 1.7 lakh crore capital outlay for the armed forces reserved for domestic capital procurements, it will give further impetus to “atmanirbharta” (self-reliance), with a multiplier effect on the GDP, employment generation and capital formation.
The Border Roads Organization (BRO) has been given a 30% increase in allocation over the last budget under the capital head, amid the continued threat perception all along the 3,488-km Line of Actual Control with China. “This allocation of Rs 6,500 crore to BRO will further accelerate our border infrastructure,” Singh said.
An official, in turn, said, “Projects such as development of the Nyoma airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost panchayat of India in Andaman and Nicobar Islands, the 4.1 km strategically-important Shinkun La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.”
The overall defence budget was pegged at Rs 6.2 lakh crore ($74 billion), virtually the same as in the interim budget in Feb, despite the ever-growing threat from China and its continuing help to build Pakistan’s military capabilities to bog down India in the subcontinent.
The capital expenditure of Rs 1.7 lakh crore for military modernization did register a 5.8% hike over last year’s budgetary estimates and 9.4% over the revised ones. “The allocation is aimed to fill the critical capability gaps through big ticket acquisitions in current and subsequent fiscals,” an official said.
But the capital outlay was dwarfed by the revenue outlay of Rs 2.8 lakh crore for day-to-day operating costs and salaries of the over 14-lakh strong armed forces and defence civilians. Of it, Rs 92,088 crore is for operational sustenance and readiness.
The overall defence allocation, however, works out to just 1.9% of the projected GDP for 2024-25 if the huge defence pension allocation of Rs 1.4 lakh crore for the 32 lakh ex-servicemen and retired defence civilians is considered. It drops to less than 1.5% if the pension bill is excluded. This when experts say at least 2.5% is needed to deal with the threat from China and Pakistan, which is often collusive.
Defence minister Rajnath Singh, on his part, said the defence allocation was 12.9% of total government budget for 2024-25. With 75% (slightly over Rs 1 lakh crore) of the Rs 1.7 lakh crore capital outlay for the armed forces reserved for domestic capital procurements, it will give further impetus to “atmanirbharta” (self-reliance), with a multiplier effect on the GDP, employment generation and capital formation.
The Border Roads Organization (BRO) has been given a 30% increase in allocation over the last budget under the capital head, amid the continued threat perception all along the 3,488-km Line of Actual Control with China. “This allocation of Rs 6,500 crore to BRO will further accelerate our border infrastructure,” Singh said.
An official, in turn, said, “Projects such as development of the Nyoma airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost panchayat of India in Andaman and Nicobar Islands, the 4.1 km strategically-important Shinkun La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.”