Exclusive | Defence allocation likely to be raised by 7-9% in Budget 2024?

Budget Expectations 2024: After five years, India once again awaits the presentation of a full-year Budget in the second half of the year, following a Vote on Account in February. Expectations are high - once again - that the upcoming Budget will introduce several changes aimed at promoting growth and prosperity for both the economy and the common man. Many experts and analysts have laid out their wishlists in the run-up to the much-anticipated event. The defence Budget is likely to get a boost of 7-9 per cent in the upcoming Union Budget, sources told Zee Business.

The full-year Union Budget for Financial Year 2024-25, scheduled to be unveiled by the finance minister on July 23, 2024, is likely to allocate Rs 6.3 lakh crore to the Ministry of Defence, according to the sources. For the previous financial year, a sum of Rs 5.9 lakh crore was allocated to the department.

In the Interim Budget 2024-25, the last Budget of the Modi government before the 2024 general election, the Ministry of Defence was allocated a sum of Rs 6,21,540.85 crore, which translates to 13 per cent of the total Union Budget. With that, the defence ministry continued to receive the highest allocation among the various departments.

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Here are some of the other expectations from the upcoming defence Budget, according to sources:

• A separate provision for purchasing arms and ammunition
• A special grant for Border Roads Organisation (BRO) for the construction of roads, bridges and tunnels near international borders
• R&D allocation for Defence Research and Development Organisation (DRDO) to be increased by 10 per cent

Now, here are some key takeaways from the Interim Union Budget 2024-25:

• A record allocation of Rs 6.21 lakh crore for the Ministry of Defence in Interim Union Budget 2024-25, 4.7 per cent higher than the allocation for FY24
• An allocation of Rs 1.72 lakh crore, or 27.7 per cent of the total defence budget, for capital acquisition
• Budget to Armed Forces for revenue expenditure (other than salary) at Rs 92,088 crore
• Budgetary allocation for defence pensions at Rs 1.41 lakh crore
• Rs 6,500 crore earmarked to strengthen border infrastructure
• Rs 7,651.80 crore for Indian Coast Guard
• Budgetary allocation to DRDO enhanced to Rs 23,855 crore