Budget 2024: Government Allocates Rs 6.2 Lakh Crore For Defence, A Hike Of Rs 27,000 Crore Over 2023-24

Finance Minister Nirmala Sitharaman in her budget speech on Thursday (1 February) allocated Rs 6.2 lakh crore for defence spending, marking a modest increase of Rs 27,000 crore compared to the previous year, hindi daily Dainik Bhaskar reported.

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 2.82 lakh crore for the salaries of the three armed forces this year, a slight increase of Rs 12,652 crore from the previous fiscal year.

An allocation of Rs 1.62 lakh crore has been made for weapon procurement, a modest increase of Rs 10,231 crore from the previous year.

The capital budget is crucial as it's used to procure weapons, ammunition, fighter planes, and other vital equipment. This year, the Indian Air Force has received the largest budget for weapon procurement (Rs 57,000 crore), followed by the Indian Navy and the Indian Army.

The government has allocated Rs 1.41 lakh crore for pensions this year, slightly higher than last year's Rs 1.38 lakh crore. The largest portion of the pension budget is allocated to the army, followed by the air force and the navy.

Despite the allocations, the defence budget's share of the gross domestic product (GDP) has decreased from 2.4 per cent to 1.97 per cent over the past three years.