Budget 2024: Government Allocates Rs 6.21 Lakh Crore On Defence, A Rise Of 4.72 Per Cent Than Last Year

Finance Minister Nirmala Sitharaman has allocated Rs 6.21 lakh crore for defence spending, marking no change from the interim budget announced in February 2024.

This is a modest increase from the defence budget of Rs 5.93 lakh crore granted in the last financial year (FY 2023-24).

According to Defence Minister Rajnath Singh, the defence budget is 12.9 per cent of the total spending of the Union government. This is a rise of 4.72 per cent than the last year.

The defence budget comprises three main components: revenue (salaries for the forces), capital expenditure (purchasing weapons and other essential equipment), and pensions.

The government has allocated Rs 1.72 lakh crore for capital expenditure, which is just an increase of Rs 10,000 crore from last year’s outlay of Rs 1.62 lakh crore. Capital expenditure is the spending to buy new equipment like ships, tanks, fighter jets, and submarines.

The revenue budget, which is the budget allocated for day-to-day spending and salaries, has been kept the same as the interim budget of Rs 2.82 lakh crore. This is a slight increase of Rs 12,652 crore from the previous fiscal year 2023-24.

The government has allocated Rs 1.41 lakh crore for pensions this year, slightly higher than last year's Rs 1.38 lakh crore.

Moreover, the Border Road Organisation has been given a 30 per cent increase to Rs 6,500 crore.

Furthermore, for the startup ecosystem in defence, another Rs 518 crore has been allotted to the Innovations for Defence Excellence scheme to fund technological solutions provided by startups, micro, small and medium enterprises and innovators.