Government allocates Rs 6.21 lakh crore for Defence in 2024-25

Budget 2024: The government on Tuesday allocated Rs 6.21 lakh crore for the defence sector in the financial year 2024-25, marking an increase from the previous year's outlay of Rs 5.94 lakh crore.

The capital outlay for defence has been set at Rs 1.72 lakh crore, constituting 12.9 per cent of the total budget of the government of India for the upcoming fiscal year.

Defence Minister Rajnath Singh expressed gratitude for the allocation, highlighting the focus on domestic capital procurement. "The allocation of Rs 1.05 lakh crore (Rs 1,05,518 crore) for domestic capital procurement will provide further impetus to atmanirbharta (self-reliance) in the defence sector," Singh said.

Singh said that the increased capital outlay of Rs 1.72 lakh crore will enhance the capabilities of the Armed Forces. He also noted increase in funding for the Border Roads Organisation (BRO), which has received a 30 per cent boost over the last budget under the capital head, totaling Rs 6,500 crore to accelerate border infrastructure development.

To support innovation in defence, Rs 518 crore has been allocated to the iDEX scheme, which funds technological solutions provided by startups, MSMEs, and innovators.

In his statement on X, Singh expressed appreciation for the financial support from Finance Minister Nirmala Sitharaman, noting that the Ministry of Defence has received the highest allocation, amounting to Rs 6,21,940.85 crore, reinforcing the government's commitment to strengthening national defence.

(Source: Republicbiz)