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Defense funds decline, BRO gets backing

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Defense funds decline, BRO gets backing

  • The Union Finance Minister has allocated ₹6.22 lakh crore for the Defence Ministry in 2024-25, which is almost the same as in the interim Budget presented in February.
  • At approximately 12.9% of the total Budget, the fund earmarked for the Defence Ministry is a full percentage point lower than last year’s outlay.

Highlights:

  • “The capital outlay of ₹1,72,000 crore will further strengthen the capabilities of Armed forces. Earmarking of ₹1,05,518.43 crore for domestic capital procurement will provide further impetus to Atmanirbharta,” Defence Minister said he was pleased that the Border Roads Organisation (BRO) had got a 30% increase in allocation.
  • This allocation of ₹6,500 crore to the BRO would further accelerate border infrastructure.

For different sectors

  • The allocation of ₹6.22 lakh crore for the Defence Ministry is slightly lower than the Revised Estimates (RE) of FY24. Of this, a share of 27.66% goes to capital, 14.82% for revenue expenditure on sustenance and operational preparedness, 30.66% for pay and allowances, 22.7% for defense pensions, and 4.17% for civil organizations under the Defence Ministry.
  • While maintaining the allocation made to the Ministry during the interim Budget, the government has made an additional allocation of ₹400 crore on innovation in defense through the Acing Development of Innovative Technologies with iDEX (ADITI) scheme, the Ministry said.
  • “Through this scheme, MoD is engaging with start-ups/MSMEs and innovators to develop Def-Tech solutions and supply the Indian military with innovative and indigenous technological solutions.” A grant of up to 50% of Product Development Budget with enhanced limit (Max) of ₹25 crore per applicant will be awarded as per extant iDEX guidelines.
  • On the allocation to the BRO, the Ministry said it will promote strategic infrastructure development in the border areas, while boosting socio-economic development in that region.
  • This will help fund projects such as the Nyoma Airfield in Ladakh at an altitude of 13,700 feet, a permanent bridge connectivity to the southernmost panchayat of India in the Andaman and Nicobar Islands, the 4.1 km strategically-important Shinku La tunnel in Himachal Pradesh, the Nechiphu tunnel in Arunachal Pradesh and several other similar projects.

For the Coast Guard

  • The allocation to the Indian Coast Guard for FY2024-25 is ₹7,651.8 crore, which is 6% lower than that of RE FY24.
  • “Out of this, ₹3,500 crore is to be incurred only on capital expenditure, adding teeth to the arsenal of ICG for addressing the emerging maritime challenges and providing humanitarian assistance to other nations,” the statement added.

Prelims Takeaway

  • BRO
  • ICG

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