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.

Outlines

00:00

📊 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.

05:01

🛠️ 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.

Keywords

💡Defense Budget

The defense budget refers to the allocation of funds by a government to finance its military activities and operations. In the video's context, it's an interim budget for the fiscal year 2024-25, which is subject to change after the upcoming elections. The script mentions a marginal increase of 4.72% compared to the previous fiscal year's budgetary estimates but a decrease of 0.38% when compared to the revised estimates, indicating a complex financial situation for national defense.

💡Interim Budget

An interim budget is a temporary or provisional allocation of funds, typically used when there is a transition period, such as before an election. The script specifies that the current defense budget is an interim one, suggesting that more substantial changes may occur once a new government is in place and can present a full-fledged budget.

💡Capital Budget

The capital budget is the portion of the defense budget allocated for the procurement of new equipment and systems to modernize the military's capabilities. The script highlights a capital budget of 1.72 lakh CR for the next fiscal, which is intended for big-ticket acquisitions like additional Su-30 MKIs and Rafale Marine aircraft, showing the government's focus on enhancing the military's hardware.

💡Revenue Budget

The revenue budget covers the ongoing expenses of the military, including pay, allowances, and operational costs. The script notes that the military spent more than the allocated amount in the current fiscal year, indicating the need for careful financial planning and management of these funds.

💡Pensions

Pensions are the retirement benefits provided to former military personnel. The script mentions an allocation of 1.41 lakh CR for defense pensions in the upcoming fiscal year, which is slightly less than the revised estimates for the current fiscal year, reflecting the ongoing financial obligations to retired service members.

💡Defense Pensions

This term specifically refers to the pensions allocated for retired defense personnel. The script indicates an increase in the budgetary allocation for defense pensions, suggesting the government's commitment to supporting veterans.

💡Border Roads Organization (BRO)

The Border Roads Organization is responsible for the construction and maintenance of roads in India's border areas and strategic locations. The script mentions an increased capital budget for the BRO, highlighting the government's focus on infrastructure development in border regions for strategic and defense purposes.

💡Defence Research and Development Organization (DRDO)

DRDO is the agency responsible for the research and development of technology for India's military. The script notes a marginal rise in the budgetary allocation for DRDO, indicating the government's continued support for indigenous defense technology development.

💡Long-Term Integrated Perspective Plan (LTIPP)

The LTIPP is a strategic planning initiative aimed at addressing the military's long-term capability requirements through systematic modernization. The script mentions that the defense budget is aligned with the LTIPP, suggesting a planned and coordinated approach to military spending.

💡Procurement

Procurement in the defense context refers to the process of acquiring new equipment, systems, or supplies for the military. The script discusses the capital expenditure for procurement, emphasizing the government's efforts to modernize the armed forces with new systems.

💡Sustainment

Sustainment in military terms refers to the logistical support necessary to maintain the operational readiness of forces. The script allocates a portion of the budget to revenue expenditure for sustainment and operational preparedness, underlining the importance of ongoing support for the armed forces.

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

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