Aiming to be self-reliant in military equipment technology and to tackle rising threats from China along the Line of Actual Control, the government today effected a hike in allocations for modernisation of military and infrastructure in the Himalayas in the proposed Budget for 2023-24 presented in Parliament.
Ajay Banerjee
New Delhi, February 1
Aiming to be self-reliant in military equipment technology and to tackle rising threats from China along the Line of Actual Control, the government today effected a hike in allocations for modernisation of military and infrastructure in the Himalayas in the proposed Budget for 2023-24 presented in Parliament.
About 13.18 per cent of the country’s Budget has been allocated to the Ministry of Defence. The MoD’s allocation, including the capital outlay meant for new weapons and projects, salaries and expenses of the three armed forces, Coast Guard, DRDO, Border Roads Organisation (BRO) and pensions is Rs 5,93,537 crore.
It is a Rs 68,371 crore or 13.01 per cent hike over the Rs 5,25,166 crore Budget estimates of the present fiscal ending March 31, 2023.
The ‘capital budget’ of the MoD allocation for the year 2023-24 will be Rs 1,62,600 crore. This represents an increase of Rs 10,231 crore or a 6.7 per cent hike over the allocation of Rs 1,52,369 crore for the present fiscal. “The increase in the capital budget since 2019-20 has been Rs 59,200 crore (57%),” the MoD said.
Notably, operational allocation, which is separate from the capital budget, is Rs 90,000 crore. The MoD is expected to close critical gaps in combat capabilities and equip the forces in terms of ammunition, and sustenance of weapons and assets.
Pensions accounts for Rs 1,38,205 crore of the MoD Budget and represents a 15.46 per cent hike over this fiscal’s allocation of Rs 1,19,696 crore.
The increase caters to the upward revision of One Rank One Pension (OROP) for retired soldiers effected in December last year. A part of the arrears will be paid during the next fiscal, hence the hike
The capital allocation for the IAF is Rs 57,132 crore, of which Rs 15,721 crore are earmarked for aircraft and aero-engines. The Navy gets Rs 52,804 crore, of which Rs 24,200 crore is for the naval fleet. The Army gets Rs 37,231 crore as capital. These funds are for sourcing new weapons, equipment, planes, copters, tanks, guns, etc.
The capital budget of the BRO has been increased. It will spend Rs 4,500 crore in making bridges, roads and tunnels in the Himalayas. Another Rs 5,000 crore will be spent by the BRO from the Central Road and Infrastructure Fund for infrastructure in the Himalayas.
Also Research and Development gets an allocation of Rs 12,850 crore. Of this R&D budget, startups and private industry will be allowed to claim 25 per cent of the amount. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with the DRDO and other organisations.
MoD outlay 13.18% of Union Budget
- Rs 5,93,537-cr MoD Budget sees hike of 13.01% over present fiscal
- Rs 1,62,600 cr capital for new defence acquisitions
- Rs 9,500 cr allocated to border roads and bridges
- Rs 12, 850 cr earmarked for research & development
- Rs 90,000 cr provided for operational readiness