Interim Budget 2024-25 Allocates 13% to the Defence Sector

India’s Finance Minister Nirmala Sitharman announced the interim budget for the financial year 2024-25 on February 1. As this year is an election year, the final budget will be announced once the new government takes office.

Sitharaman’s interim budget has allocated a 13% share to the defence sector, making it the highest allocation of the budget. The total amount given to the defence sector is ₹6.2 lakh crore. This constituted a modest hike of 4.72 per cent from last year’s allocation of Rs 5.25 lakh crore

In the Interim Budget, Finance Minister Nirmala Sitharaman also announced plans to roll out an ambitious scheme for “deep-tech” technologies in the military domain.

A total of Rs 1.72 lakh crore was set aside for the military for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.

Given the long-standing border dispute with China, the government will continue to pump in more money to build roads near the China border even after spending 30% more than planned in the financial year 2023-24.

India will match the ₹6,500 crore ($783.41 million) above the amount scheduled for the Border Roads Organisation (BRO) in the present year to construct roads next year. The decision to raise funding for the organisation was taken "in the light of the continued threat perception faced at the Indo-China border," the government said in a statement after presenting the budget, reported Reuters.