Has the Defence budget gone up or down?

Summary

The 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.