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 affected a hike in allocations for modernisation of military, infrastructure in the Himalayas and military projects in the proposed budget for 2023-24 presented in Parliament.
Overall, the budget for the Ministry of Defence, including the capital outlay meant for new weapons and projects, the salaries and expenses of the three armed forces, coast guard, DRDO, the Border Roads Organisation and pensions is Rs 5,93,537 crore.
It represents a Rs 68,371 crore or 13.01 percent hike over the Rs 5,25,166 crore budget estimates of the present fiscal ending March 31, 2023.
The ‘capital head’ of the defence budget 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 percent hike over the allocation of Rs 1,52,369 crore for the present fiscal.
Pensions accounts for Rs 1,38,205 crore of the MoD budget and represent a 15.46 percent 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. Part of the arrears are also 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 aeroengines. 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.
Capital Budget of Border Roads Organisation (BRO) has been increased. It will spend Rs 4500 crore in making bridges roads and tunnels in the Himalayas. Another Rs 5,000 crore will be spent by BRO from the Central Road and Infrastructure Fund for infrastructure in the Himalayas.
Also the Research and Development gets an allocation of Rs 12,850 crore. Of this, startups and academia private industry will be allowed to claim 25 per cent of defence R&D budget. Private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with DRDO and other organisations.