Defence Budget 2024 Speech Highlights: Finance Minister Nirmala Sitharaman allocated Rs 6,21,940 crore for the defence budget for 2024-25, which is an increase from last year’s allocation of Rs 5.94 lakh crore. The capital outlay has been set at Rs 1,72,000 crore. This allocation represents 12.9 percent of the total budget of the Government of India for the fiscal year 2024-25. Defence Minister Rajnath Singh noted that the allocation of Rs 1,05,518 crore for domestic capital procurement will further promote self-reliance (atmanirbharta) in the defence sector.
Budget 2024 Live Updates | Railway Budget 2024 Live Updates | Income Tax Slab Rates Live Updates | Stock Market Budget 2024 Live Updates
Here are Defence Budget Highlights
Defence Budget 2024 Live Updates: Modi 3.0's first full budget will be presented by Nirmala Sitharaman in the Lok Sabha today. Catch all live action, latest updates, top analysis here
The defence spending aims to modernise the People’s Liberation Army (PLA) and extend influence in the Asia-Pacific region.
China, the second-largest spender on defence, has a budget of approximately $230 billion for 2023.
US allocates substantial funds for maintaining and upgrading the nuclear arsenal, cyber capabilities, and space defence initiatives.
The US defence budget includes significant investments in advanced technology, research and development, and maintaining a global military presence.
The United States maintains the largest defence budget in the world, with an allocation of $858 billion for 2023.
While we discuss India's defence budget, let's delve into key numbers of the biggest defence budget in the world - the United States.
In the interim Union Budget presented in February, the government allocated slightly more than Rs 6.21 trillion to the Ministry of Defence (MoD). This marked a 4.72 percent increase over the defence allocation in the FY24 Budget, though it represented a slight decrease compared to the revised allocation for the same year.
India's defence production reached Rs 74,739 crore in FY24, down from Rs 1.09 trillion the previous year. Notably, India's total defence production had surpassed Rs 1 trillion for the first time in FY23.
Before the FY25 Union Budget, private sector companies held a larger portion of defence production in FY24 than in the past eight years. According to Department of Defence Production data cited in a Business Standard report, private companies contributed Rs 16,411 crore, representing a 22 percent share of the total defence production of Rs 74,739 crore for FY24.
Earlier in the year, Singh had projected that India's annual defence production could reach Rs 3 trillion by FY29. Alongside production targets, he emphasized the potential for military hardware exports to also reach Rs 50,000 crore by FY29.
Defence exports in FY24 reached a record Rs 21,083 crore, marking a significant milestone. Singh reiterated the ministry's target to achieve defence exports exceeding Rs 50,000 crore by FY29.
Rajnath Singh, serving his second consecutive term as Union defence minister, expressed the Ministry of Defence's goal to enhance defence exports.
For the current financial year, India is expected to spend over Rs 1.38 lakh crore on defence pensions. This amount underscores the commitment to providing post-retirement benefits to ex-servicemen across various branches of the armed forces and central security forces.
The budget allocates significant funds for defence pensions, which have risen from approximately Rs 1.17 lakh crore in FY 2021-22 to Rs 1.53 lakh crore in FY 2022-23. This expenditure covers pensions for retired personnel from the Indian Army, Navy, Air Force, and other central forces under the Ministry of Defence, including the Indian Coast Guard.
In the financial year 2021-22, India's capital expenditure on defence was around Rs 1.38 lakh crore. This amount was increased to Rs 1.5 lakh crore in the revised estimates for FY 2022-23, reflecting ongoing efforts to strengthen defence capabilities.
A record Rs 1.62 lakh crore has been allocated for capital expenditure in the defence budget for FY 2023-24. This expenditure is crucial for acquiring new weapon systems, modernizing equipment, and developing defence infrastructure.
Revenue expenditure (defence services revenue) constitutes nearly 63.4% of the total defence budget. This indicates the significant portion allocated to day-to-day operational expenses and personnel costs.
The overall defence budget for the current financial year amounts to approximately Rs 4.37 lakh crore. This total encompasses all expenditures related to defence operations, infrastructure, and personnel.
The civil aviation sector is looking forward to policy measures that will improve business conditions and ease tax burdens. Private airport operators have submitted a memorandum to the government, proposing ways to streamline both direct and indirect tax structures. (Live Updates)
Expected measures may include expanding the number of coaches, modernizing existing trains, and launching new Vande Bharat categories such as Vande Metro, Chair Car, and Sleeper. Announcements could also cover the introduction of additional Vande Bharat services on specific routes and potential expansions of the recently launched NaMo Bharat trains. The emphasis remains on improving travel experiences and enhancing safety protocols, promising significant advancements in India's railway system. (Live Updates)
This category accounts for over Rs 37,000 crore in the budget for FY 2023-24. It includes expenses such as salaries, wages, establishment costs, and operational expenses for the Indian Armed Forces.
Approximately Rs 8,850 crore allocated for the current financial year. This expenditure is earmarked for infrastructure development and other capital investments within the Ministry of Defence.
Estimated at nearly Rs 46,000 crore for the financial year 2023-24. This category covers administrative and civilian expenses related to the Ministry of Defence.
Good morning and welcome to our live coverage of defence budget 2024. As Nirmala Sitharaman presents Union Budget 2024 in few hours, we take you through key numbers in defence sector, goals and reality check of geopolitical world.