India’s defence budget hits ₹6.22 lakh crore, tops all ministries

By Vivek Dubey

CNBC-TV18.com

Published July  23, 2024

Record Allocation

India’s Ministry of Defence receives a historic ₹6.22 lakh crore, the largest budget among all ministries for FY25.

Yearly Increase

The defence budget saw a 4.79% rise from the previous year, reflecting enhanced investment in national security.

Capital Expenditure

Of the total, ₹1.72 lakh crore is earmarked for capital expenditure, focusing on new equipment and infrastructure.

Operational Readiness

₹92,088 crore is allocated for sustenance and operational readiness, ensuring ongoing military efficiency and effectiveness.

Defence Pension Boost

The defence pension budget rises to ₹1.41 lakh crore, marking a 5% increase from the revised FY24 estimate.

ECHS Cut

Allocation for the Ex-Servicemen Contributory Health Scheme (ECHS) is dropped to ₹6,968 crore, from ₹9,221 crore.

Agnipath Scheme Surge

Funding for the Agnipath scheme jumps by over 80% to nearly ₹6,000 crore, enhancing recruitment and training efforts.

Agnipath Breakdown

Allocation under Agnipath for FY25: Army ₹5,207 crore, Navy ₹352 crore, Air Force ₹420 crore, totalling ₹5,979 crore.

Border Roads Investment

₹6,500 crore is allocated for the development of border roads, aiming to improve infrastructure along India's frontiers.

Coastal Security Funding

A significant ₹7,651 crore is dedicated to coastal security, reinforcing maritime safety and surveillance.