Budget 2024: Government increases defence budget to Rs 6.21 lakh crore for 2024-25; Rajnath Singh thanks Finance Minister

The Indian government has allocated Rs 6,21,940 crore for the defence budget for the financial year 2024-25, marking an increase from the previous year's allocation of Rs 5.94 lakh crore. The capital outlay for the defence sector has been set at Rs 1,72,000 crore.

This substantial allocation represents 12.9% of the total government budget for 2024-25. Defence Minister Rajnath Singh highlighted that Rs 1,05,518 crore of this budget is dedicated to domestic capital procurement, aiming to boost self-reliance in the defence sector, known as 'Atmanirbharta'.

Expressing his gratitude to Finance Minister Nirmala Sitharaman, Singh stated, "The allocation of Rs 6,21,940.85 crore, which is 12.9% of the total budget, underscores the government's commitment to strengthening our defence capabilities." Read full speech here.

Singh emphasised that the capital outlay of Rs 1,72,000 crore will enhance the Armed Forces' capabilities. He also noted a significant increase in funding for border infrastructure, with the Border Roads Organisation (BRO) receiving a 30% increase in allocation, bringing their budget to Rs 6,500 crore. This boost is expected to accelerate infrastructure development in border areas.

Additionally, Rs 518 crore has been allocated to the iDEX scheme, which supports technological solutions from startups, MSMEs, and innovators in the defence industry. This move aims to foster innovation and growth within the sector.

The interim budget presented on February 1 initially set the defence budget for 2024-25 at Rs 6.21 lakh crore.

Defence Minister Rajnath Singh expressed gratitude to Finance Minister Nirmala Sitharaman for allocating the highest budget to the defence sector. In a post on X, Singh stated, "I thank the Finance Minister for providing the highest allocation to the Ministry of Defence, amounting to Rs 6,21,940.85 Crore, which is 12.9% of the total Budget of GoI for FY 2024-25. The capital outlay of Rs 1,72,000 Crore will further enhance the capabilities of the Armed Forces."

Congratulations to Finance Minister Smt. @nsitharaman for presenting an excellent and outstanding full year Budget for FY 2024-25 which will help in moving towards making a prosperous and self-reliant ‘Viksit Bharat’. Inspired by PM Shri @narendramodi vision of Inclusive and…

— Rajnath Singh (@rajnathsingh) July 23, 2024

Singh highlighted that Rs 1,05,518.43 Crore has been earmarked for domestic capital procurement, which will significantly boost Atmanirbharta. He also noted a 30% increase in allocation for Border Roads over the last budget under the capital head, with Rs 6,500 Crore allocated to the BRO to accelerate Border Infrastructure. Additionally, Rs 518 Crore has been allocated to the iDEX scheme to support technological solutions from startups, MSMEs, and innovators in the Defence Industries.

In another post, Singh congratulated Sitharaman for presenting an outstanding full-year budget for FY 2024-25, emphasizing that it will contribute to building a prosperous and self-reliant 'Viksit Bharat'. He wrote, "Inspired by PM Narendra Modi's vision of inclusive and fast-paced development, this budget will accelerate India's economic transformation."

Praising the Union Budget, the Defence Minister remarked, "This Budget is unique in many ways and, by clearly outlining the NDA Government's 9 key priorities for all-round and inclusive development, it has successfully elevated India's growth trajectory. This budget will play a crucial role in making India a five trillion dollar economy by 2027. It will boost demand, create new opportunities for youth, and propel India's economy onto the global stage. I thank the PM and FM for giving a monumental push to India's economic and social development."

He further mentioned, "Numerous policies and programs to support India's farmers, youth, women, and other weaker sections of society have also been announced. Sectors like infrastructure, agriculture, banking, energy, industry, R&D, MSMEs, and defence have received special attention."