Union Budget: Defence sector outlay gets lion’s share, focus on self-reliance, modernisation-OxBig News Network

Focusing on self-reliance, modernisation and infrastructure in border areas, the government has allocated a sum of Rs 6,81,210 crore to the Ministry of Defence in its Budget for the next fiscal.

Though the allocation for the defence sector has increased by 9.53 per cent over the Rs 6,21,940-crore budget of the 2024-25, the highest year-on-year increase in percentage terms (13.87 per cent) is for pensions.

Catering to 34 lakh defence pensioners, the allocation now stands at Rs 1,60,795 crore, up from Rs 1,41,205 crore. Pensions form 23.60 per cent of the entire defence allocation. Notably, the government has made earmarked a sum of Rs 1,80,000 crore for the capital expenses that has been segregated into two parts.

One portion comprising Rs 1,48,722.80 crore has been earmarked for modernisation, including acquisition of planes, warships, submarines, guns, tanks and UAVs. At present, around 60 warships are under-construction and domestic assembly lines are producing fighters jets, helicopters, artillery guns, rifles.

Some major acquisitions planned in the next year include specialised UAVs — Predator — and the Rafale-M fighter jets for the Navy and the follow-on order of three Kalvari class submarines.

The second portion of the capital expenses is a sum of Rs 31,277.20 crore, which has been allocated for research and development and creation of military infrastructural assets across the country. In its push for self-reliance, the government will spend Rs 1,11,544 crore from its modernisation allocation for acquisition of equipment, systems and weapons from domestic industries. The defence grant translates to 13.45 per cent of the Union Budget — the largest chunk for any ministry and is 1.9 per cent of the gross domestic product.

The government has been continuously allocating higher amount for sustenance and operational preparedness. A sum of Rs 1,14,415 crore has been allocated for operational readiness to facilitate procurement of ration, fuel, ordnance stores, maintenance and repair of equipment.

This allocation will also address additional deployment of the forces in border areas, hiring of ships, increase in expenditure on longer sea deployment and increase in flying hours for aircraft.

In its focus on technology, the MoD plans to venture out into new domains such as cyber, space and emerging technologies, including artificial intelligence, machine learning and robotics.

The outlay for the Defence Research and Development Organisation has been increased to Rs 26,816 crore. Of this, Rs 14,923 crore

has been assigned for

capital expenditure and to fund R&D projects in new technologies and fundamental research.

Focusing on strategic infrastructure in border areas, a sum of Rs 7,146.50 crore has been earmarked for capital works of the Border Roads Organisation. This will be used for constructing tunnels, bridges and roads near Yangtse in Arunachal Pradesh, in J&K and in Rajasthan. The Indian Coast Guard has been allotted Rs 9,676.70 crore under the capital head aimed at securing Advanced Light Helicopters, Dornier aircraft, fast patrol vessels, training ships, interceptor boats, etc.