Has the Defence budget gone up or down?
Summary
TLDRThe video discusses the interim defense budget for 2024-2025, highlighting a marginal increase of 4.72% compared to the previous fiscal year's estimates, but a 0.38% decrease from the revised estimates. The budget accounts for 13.04% of total expenditure, down from 13.8% the previous year. Key points include a total defense budget of ₹6.21 lakh crore, capital budget for new equipment at ₹1.72 lakh crore, and a revenue budget of ₹2.82 lakh crore for operational expenses. Notable allocations include increased funding for the Border Roads Organization and DRDO, aimed at enhancing military capabilities and infrastructure.
Takeaways
- 📈 The interim defense budget for 2024-25 has been marginally increased by 4.72% compared to the budgetary estimates of the current fiscal year.
- 📉 Compared to the revised estimates, the new budget shows a decrease of 0.38%, indicating negative growth.
- 📊 The defense budget accounts for 13.04% of the total expenditure this fiscal year, down from 13.8% in the previous year.
- 💰 The total defense budget for 2024-25 is 6.21 lakh crore rupees, slightly less than the revised estimate of 6.23 lakh crore rupees for the current fiscal year.
- ⚔️ The capital budget is set at 1.72 lakh crore rupees for the next fiscal year, intended for procurement of modern systems for the Armed Forces.
- 🏗️ Both the Army and the Navy have not fully utilized their allocated capital budgets, while the Air Force has spent more than allocated.
- 🪖 The revenue budget for 2024-25 is 2.82 lakh crore rupees, lower than the revised estimate of 2.98 lakh crore rupees for the current fiscal year.
- 👴 The pension allocation for 2024-25 stands at 1.41 lakh crore rupees, slightly less than the revised estimate for the current fiscal year.
- 🚧 The budget for the Border Roads Organization has increased to 6,500 crore rupees for 2024-25, 30% higher than the previous fiscal year.
- 🔬 The DRDO's budget for 2024-25 is 23,855 crore rupees, with a major share allocated for capital expenditure.
Q & A
What is the significance of the interim defense budget discussed in the video?
-The interim defense budget is significant as it is a temporary allocation of funds for the defense sector until a new government is sworn in after the upcoming elections, at which point a full-fledged budget will be presented.
How does the interim defense budget for 2024-25 compare to the previous fiscal year in terms of percentage increase?
-The interim defense budget for 2024-25 has seen a marginal increase of 4.72% compared to the budgetary estimates of the current fiscal year. However, it shows a decrease of 0.38% when compared to the revised estimates.
What percentage of the total expenditure does the defense budget account for in the current fiscal year, according to the script?
-In the current fiscal year, the defense budget accounts for 13.04% of the total expenditure, which is a decrease from 13.8% in the previous year.
What is the total outlay of the interim budget for 2024-25 as a percentage of the total nominal GDP, and how does it compare to the current fiscal year?
-The total outlay in the interim budget for 2024-25 is 2.09% of the total nominal GDP, which is a drop from 2.17% in the current fiscal year.
What was the total defense budget for 2024-25 in terms of rupees, and how does it compare to the previous fiscal year's revised estimates?
-The total defense budget for 2024-25 stood at 6.21 lakh crore rupees, which is a decrease compared to the revised estimates of 6.23 lakh crore rupees for the current fiscal year.
What is the capital budget allocation for the defense sector in the interim budget year, and how does it compare to the previous year's revised estimates?
-The capital budget allocation for the defense sector in the interim budget year is 1.72 lakh crore rupees, which is an increase from the revised estimates of 1.57 lakh crore rupees in the previous year.
Why were the Army and Navy unable to spend the full capital amount allocated to them?
-The script does not provide specific reasons for the Army and Navy's inability to spend the full capital amount, but it implies that there may have been inefficiencies or other issues that prevented the complete utilization of funds.
What does the revenue budget cover, and how much more did the military spend compared to the allocation in the current fiscal year?
-The revenue budget covers pay and allowances, sustainance, operational preparedness, and day-to-day expenditure of the armed forces. The military spent 28,000 crore rupees more than the allocated amount.
What is the allocation for pensions in the 2024-25 defense budget, and how does it compare to the revised estimates of the current fiscal year?
-The allocation for pensions in the 2024-25 defense budget stands at 1.41 lakh crore rupees, which is less than the revised estimates of 1.42 lakh crore rupees for the current fiscal year.
What percentage of the total defense budget is allocated to capital procurement, and what are some of the planned acquisitions for the next fiscal year?
-27.67% of the total defense budget is allocated to capital procurement. Some of the planned acquisitions for the next fiscal year include 12 additional Su-30 MKIs, the upgrade process of about 100 Su-30 MKI fighters, purchase of 26 Rafale Marine aircraft, and three additional Scorpene submarines.
How has the budgetary allocation for the Border Roads Organization (BRO) changed for 2024-25, and what does this indicate?
-The budgetary allocation for the BRO for 2024-25 is 6,500 crore rupees, which is 30% higher than the allocation in the previous fiscal year. This indicates an increased focus on infrastructure development along the Indo-China border in response to perceived threats.
What is the budgetary allocation for the Defence Research and Development Organization (DRDO) for the next fiscal year, and what is the major share allocated for?
-The DRDO has been allocated 23,855 crore rupees for the next fiscal year, with the major share of 13,285 crore rupees allocated for capital expenditure.
Outlines
📊 Interim Defense Budget Analysis for 2024-25
In this segment, SNES Alex Philli discusses the interim defense budget for the fiscal year 2024-25, highlighting a marginal increase of 4.72% compared to the previous fiscal year's budget estimates but a decrease of 0.38% when compared to the revised estimates. The defense budget now accounts for 13.04% of the total expenditure, a reduction from the previous year's 13.8%. The total outlay for the interim budget is 2.09% of the total nominal GDP, a drop from 2.17% in the current fiscal. The capital budget for the next fiscal is set at 1.72 lakh CR, aimed at procuring modern systems for the Armed Forces. Despite the Army and Navy failing to spend their full capital allocation, the Air Force managed to exceed its allocation. The revenue budget, which covers pay, allowances, and operational preparedness, saw an overspend of 28,000 CR over the allocated amount. The defense budget allocation for pensions is slightly reduced for the next fiscal year, and the overall budget allocation is broken down into various categories such as capital procurement, revenue expenditure, pay and allowances, defense pensions, and organizations under the OT.
🛠️ Capital Expenditure and Modernization Plans
This paragraph outlines the defense Ministry's plans to fill critical capability gaps through modernization, with a focus on big-ticket acquisitions in the next fiscal year. The planned acquisitions include additional Su-30 MKIs, an upgrade process for about 100 Su-30 MKI fighters, the purchase of 26 Rafale Marine aircraft, and three additional Scorpene submarines. The budgetary allocation for defense pensions has increased by 2.17% compared to the previous fiscal year. In response to the continued threat perception at the Indo-China border, the capital budget for the BRO has also increased by 30%. The allocation will fund projects such as the development of the Noma Airfield in Ladakh, bridge connectivity in the Andaman and Nicobar Islands, and the strategically important Shula and Nepu tunnels. The DRDO's budgetary allocation has seen a marginal rise, with a significant portion allocated for capital expenditure on various projects.
Mindmap
Keywords
💡Defense Budget
💡Interim Budget
💡Capital Budget
💡Revenue Budget
💡Pensions
💡Defense Pensions
💡Border Roads Organization (BRO)
💡Defence Research and Development Organization (DRDO)
💡Long-Term Integrated Perspective Plan (LTIPP)
💡Procurement
💡Sustainment
Highlights
The defense budget for 2024-25 has been increased marginally by 4.72% compared to the budgetary estimates of the current fiscal year.
There is a 0.38% decrease in the defense budget when compared to the revised estimates of the current fiscal year, indicating a negative growth.
The defense budget now accounts for 13.04% of the total expenditure, a decrease from 13.8% in the previous year.
The interim budget for 2024-25 represents 2.09% of the total nominal GDP, a drop from 2.17% in the current fiscal year.
The total defense budget for 2024-25 is estimated at 6.21 lakh CR, slightly higher than the 5.93 lakh CR in the previous fiscal's budgetary estimates.
The revised estimates for the current fiscal year's defense budget stand at 6.23 lakh CR, showing a negative increase for the next fiscal year.
The capital budget for the military has been revised to 1.72 lakh CR for the interim budget year, focusing on the procurement of modern systems.
Both the Army and the Navy failed to spend the full capital amount allocated to them in the previous year.
The Air Force managed to spend more than the allocated amount in the revenue budget, which covers pay, allowances, and operational preparedness.
The revenue spending exceeded the allocated amount by 28,000 CR, indicating inefficiencies in budget allocation.
The allocation for the next fiscal's revenue budget is less than what was spent in the previous year, at 2.82 lakh CR compared to 2.98 lakh CR.
The budget for pensions in 2024-25 is set at 1.41 lakh CR, slightly less than the revised estimates of 1.42 lakh CR for the current fiscal year.
27.67% of the defense budget is allocated to capital procurement, with 14.82% for revenue expenditure on sustainance and operational preparedness.
The defense Ministry's budgetary allocation for capital expenditure in 2024-25 is 1.72 lakh CR, which is 20.33% higher than the actual expenditure of the previous fiscal year.
Planned acquisitions for the next fiscal include 12 additional Su-30 MKIs, upgrade of about 100 Su-30 MKI fighters, and purchase of 26 Rafale Marine aircraft.
The budgetary allocation for Defense pensions is 1.41 lakh CR, which is 2.17% higher than the allocation made during 2023-24.
The capital budget for the BRO has increased by 30% to 6,500 CR for 2024-25, focusing on infrastructure development along the Indo-China border.
DRDO's budgetary allocation has seen a marginal rise to 23,855 CR for the next fiscal, with a major share allocated for capital expenditure.
Transcripts
hello and welcome to the defense scope
I'm SNES Alex philli now today is the
day of budget and I will specifically
look at the defense budget now remember
that this is an interim defense budget
because yes the elections are coming up
a new government will be sworn in and
that is when the full- flesh budget will
happen now as far as interim budget is
concerned that is the budget for 20
2425 it has been hiked by a marginally
4.
72% when compared to the budgetary
estimates this
fiscal however a comparison with the
revised estimates shows that this is
actually minus
0.38% decrease yes it's actually a
negative growth now according to the
budget estimates that the union Finance
Minister Nima siaran read out Thursday
the defense budget accounted for 13.0 4%
of the total expenditure this fiscal as
compared to
13.8% in the year before which means
that there is a shortfall here too now
the total outlay in the interim budget
for
20242 was
2.09% of the total nominal GDP compared
to
2.17% in the current fiscal which means
that there has been a drop in this
aspect as well now in terms of pure
numbers the Total Defense budget for
2024 25 stood at rupees
6.21 lakh CR or approximately about 6.2
lakh CR as compared to the 5.93 lakh CR
in the budgetary estimates for this
fiscal however the revised estimates
puts the defense budget at rupees 6.23
lakh this fiscal and hence the new
numbers for the next fiscal are a
negative
increase when it comes to the capital
budget last year's budgetary estimates
stood at rupees 1.62 lakh CR but were
revised to 1.57 CR as the military was
not able to spend the allocated amount
the interim budget year marks rupes 1.72
lakh CR for the capital expenditure
which will go towards procurement of
modern system systems for the Armed
Forces now budget figures show that both
Army and the Navy have failed to spend
the full Capital amount allocated to
them however the if managed to spend
more than what it was
allocated when it comes to the revenue
budget the allocation that takes care of
pay and allowances besides sustainance
and operational preparedness the
military spent rupees 28,000 CR more
than what it was
allocated Revenue spending includes
procuring of ammunition mobility of
resources movement of personnel catering
to day-to-day expenditure of the arm
forces in strengthening the deployment
in forward areas and keeping the forces
always ready to take care of any
eventuality so remember that capital
budget is meant for procuring new
equipment and revenue budget goes
through uh pay allowances and
sustainance issues now this year the
earmarked amount is less than what was
spent last year that is the revenue
budget while the budgetary expenditure
for Revenue was 2.70 lakh CR the actual
revised number stood at 2.98 lakh CR for
the next fiscal sitan has allocated 2.82
lakh
CR when it comes to pensions the budget
allocated for 2024 25 stands at 1.41
lakh CR less than the revised estimates
of 1.42 lakh CR for this fiscal now as
far as numbers are concerned remember
that of the 6.2 lakh CR allocated to the
defense budget 27.6 7% goes to Capital
procurement 14.82% for Revenue
expenditure on sustainance and
operational preparedness
3.68% for pay and allowances
22.72% for defense pensions and
4.11% for organizations under the OT
that is a civil
organizations now the defense Ministry
says that the budgetary allocation for
cap capital expenditure in the defense
for
2425 is 1.72 lakh CR Which is
20.33% higher than the actual
expenditure of financial year 2223 and
99.4% more than the revised allocation
of
2324 the defense Ministry claims that
the allocation is lined with a long-term
integrated perspective plan that is the
LTI PPP of the three services aimed to
fill critical capability gaps through
modernization by materializing some big
ticket Acquisitions in the next fiscal
the planned Acquisitions for the next
fiscal includes the 12 additional s30
mkis upgrade process of about 100 s30
mki Fighters purchase of 26 Rafal Marine
aircraft three additional scorpion
submarines among many others now the
toal toal budgetary allocation on
account of Defense pensions is rupees
1.41 lakh CR Which is 2.17 higher than
the allocation made during 2023 24 also
remember that in light of what the
defense Ministry calls the continued
threat perception faced at the Indo
China border the capital budget for the
brro that is a border roads organization
has also increased the location for
budgetary estimates 2024 25 is rupees
6,500 CR which is 30% higher than the
allocation in
2324 and just to give an idea about the
numbers remember that the one that has
been allocated for next fiscal is 160%
higher over the allocation in 2021
2022 projects such as the development of
the Noma Airfield in ladak at an
altitude of 13,700 Ft permanent Bridge
connectivity to southernmost pchat of
India in Andaman and nicobar Island the
4.1 kilm strategically important Shula
tunnel in Himachal Pradesh the nepu the
nepu tunnel in arach Pradesh and many
other projects will be funded out of
this allocation now the drdo has seen a
very marginal rise as far as the
budgetary allocation is concerned The
Dru has been given rupees 23,8 55 CR for
the next fiscal from the
23,26 CR this fiscal of this the major
share of rupees
13,28 CR is allocated for capital
expenditure for the print this is SN
Alex philli do subscribe to our Prince
YouTube channel for more such
[Music]
videos
Voir Plus de Vidéos Connexes
UNION BUDGET 2024 Explained | Mind Maps | Budget Explained In Under 15 Minutes
FY24 Defence Production Grows 17% To Record High: What Defence Industry Wants From Budget 2024?
Indian Budget 2024 EXPLAINED in 10 minutes | Real Winners & Losers
What Does The Defence Sector Expect From Budget 2024? | Union Budget Expectations
INDIAN BUDGET EXPLAINED IN 10 MINUTES | Budget 2023 explained | Abhi and Niyu
Indian Defence Sector - Long Term Growth Story ? I Defence Funds I Best Mutual Fund to Buy in 2024
5.0 / 5 (0 votes)