Budget 2023 may increase defence sector allocation by 10-15% amid ongoing tensions with China on LAC
Budget 2023: Union Budget for the financial year 2023-24 is set to be tabled on February 1 by Finance Minister Nirmala Sitharaman.
Budget 2023: Union Budget for the financial year 2023-24 is set to be tabled on February 1 by Finance Minister Nirmala Sitharaman. Many sectors are pinning their hopes on this budget, including the defence sector. Keeping in mind simmering tension at India's borders, the government has prioritised defence spending in the previous budgets. The Ministry of Defence was allocated a total budget of Rs 5.25 lakh crore last year, and a growth of up to 10-15 per cent is expected this time around.
Allocation increase by 10-15 per cent expected
The defence sector anticipates a 10-15 percent increase in defence spending in this Budget. Many announcements are anticipated by the government in the defence space, especially with regards to domestic production, such as orders related to equipment and R&D. At the same time, domestic companies of the government could also get more encouragement to boost manufacturing. The industry is expecting a growth of 25 per cent and an increase in the defence budget of up to Rs 6.6 lakh crores.
MSME to be in focus
Apart from this, the Ministry of Micro, Small & Medium Enterprises (MSME) will also be in focus in the Budget, and a large participation of MSMEs is expected in the defence sector. Apart from the incentives or policies being announced for research and development, a hike in the allocated amount is expected in the budget for the procurement of new equipment as well, which would together go a long way in strengthening the sector.
Changes introduced in the Defense sector 2022
While presenting the Union Budget 2022-23 in Parliament, FM Sitharaman had announced a 25 percent increase for research in the defence sector. Defence Ministry was allocated Rs 2.39 lakh crore, as against Rs 2.33 lakh crore allocated the previous year. The defence pension budget of the ministry was Rs 1.19 lakh crore.
The defence sector received a major fillip for capacity expansion at the domestic level through government's push for domestic industries under the 'Make in India campaign'. Emphasis was laid on promoting research, AI and SPV in the defence sector.
Where to watch Budget 2023 LIVE
One can watch the Budget 2023 speech live on Parliament TV and Doordarshan. The Press Information Bureau (PIB) will also stream Budget 2023 live on its online platform. Apart from this, one can watch the Budget coverage on ZEE Business as well.
Also, read- Budget 2023: From increased capex to Vande Bharat trains, what to expect from FM Nirmala Sitharaman - check likely announcements
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