Defense Ministry Secures Record Budget Allocation for FY 2024-25

The Ministry of Defence (MoD) has been allocated over Rs 6.21 lakh crore for FY 2024-25, focusing on innovation, modernization, and operational readiness. Key investments include domestic procurement, healthcare for veterans, and strategic infrastructure development, aimed at bolstering national security and economic growth.

New Delhi [India], July 23 (ANI): The Ministry of Defence (MoD) has received an allocation of over Rs 6.21 lakh crore in the Union Budget for the Financial Year (FY) 2024-25. This allocation, approximately US $75 billion, is the highest among all ministries, as confirmed by a press release from MoD.

Additional Rs 400 crore has been allotted for the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, targeting innovative defense solutions. This initiative engages start-ups, MSMEs, and innovators, offering grants up to 50% of the Product Development Budget, capped at Rs 25 crore per applicant under current iDEX guidelines.

The allocation represents an 18.43% increase from FY 2022-23 and a 4.79% rise over FY 2023-24, with focuses on capital expenditure (27.66%), revenue expenditure (14.82%), pay and allowances (30.66%), pensions (22.70%), and civil organizations (4.17%). The budget promotes 'Aatmanirbharta' in defense technology, aiming to equip Armed Forces with modern weaponry and boost youth employment.

Capital expenditure for FY 2024-25 is Rs 1.72 lakh crore, marking a 20.33% increase from FY 2022-23. This funding supports significant acquisitions, including advanced weaponry, aircraft, and unmanned vehicles, with 75% of the modernization budget intended for domestic procurement, expected to stimulate the economy and job market.

Operational readiness receives Rs 92,088 crore—48% higher than FY 2022-23—to ensure top-notch maintenance, resource mobility, and forward deployment capabilities. Healthcare for veterans will be enhanced with Rs 6,968 crore allocated to the Ex-Servicemen Contributory Health Scheme (ECHS), a 28% increase from last year.

Strategic infrastructure projects, such as the development of Nyoma Airfield in Ladakh and various tunnels in Himachal Pradesh and Arunachal Pradesh, are also funded. The Indian Coast Guard is allocated Rs 7,651.80 crore, focusing on maritime security and humanitarian missions.

Furthermore, the budget for the Defence Research and Development Organization (DRDO) is increased to Rs 23,855 crore, with a significant portion for capital expenditure. This is aimed at fostering innovation and technological advancement in collaboration with private sector partners.

Overall, the escalated budget for defense pensions to Rs 1.41 lakh crore will support 32 lakh pensioners through the SPARSH system and other disbursing authorities, ensuring their financial security.

(With inputs from agencies.)