DEFENCE BUDGET (2023 – 2024)

 

Ministry of Defence take on defence budget

(Click on the link above)

 

Analysis

• This year’s budget speech by the finance minister, did not mention anything about the defence sector.

One wonders if the importance of the defence has gone down or we are learning from China to keep everyone guessing.

 

• The defence budget at Rs 5.93 lakh crore is 12.95%, up from budget estimates of last year at Rs 5.25 lakh crore.

It is an increase from previous budget, even after removing the rate of inflation.

 

• Capital outlay is up by Rs10 000 crore to Rs 1.62 lakh crores. The revenue allocation is Rs 2.7 lakh crores. The budget for defence pensions is Rs 1.38 lakh crores, and for the civilian employees of the defence ministry, it is Rs 22,612 crores.

Keeping in mind the prevailing threat scenario, much more is required in the capital outlay. However, the increase is welcome sign. Hope it does not get revised downwards later.

 

• The total capital allocation for defence is Rs 1.62 Lakh crores. The Army has an increase of 16.32% (from 32000 to 37,000), the Navy 10.96% (from 47,700 to 52,800) and the Air Force 2.79% (from 55,500 to 57,000).

Higher increase for Army & Navy would provide a boost for the modernisation of the surface force. 

 

•  The Border roads organisation has had a substantial jump in its budget by 43%.

This is a welcome sign and would speed up the much required infrastructure at the borders.

 

• The DRDO has an increased its funding by 9%.

Private sector R&D needs to be tapped.

 

• For innovation and startups in the defence sector, an allocation of Rs 161 Crores has been made.

Towards ‘Make in India’ and ‘self-reliance’.

 

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References and credits

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