Budget 2023: Aatmanirbharta agenda reflects in Defence budget; 13 per cent increase in allocation
The defence budget was increased to Rs 5.94 lakh crore for 2023-24 from last year's allocation of Rs 5.25 lakh crore.
New Delhi: Giving a push to the Atmanirbhar Bharat initiative and reduce dependency on imports, Finance Minister Nirmala Sitharaman allocated a defence budget of Rs 5.94 lakh crore for the financial year 2023-24, an increase of about 13 per cent against last year’s allocation at Rs 5.25 lakh crore.
In 2021-22, the defence budget stood at Rs 4.78 lakh crore.
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The overall defence budget of 5,94 lakh crore includes Rs 1.38 lakh crore for defence pensions, Rs 1.67 lakh crore for capital outlay and Rs 2.70 lakh crore for defence service (revenue).
The defence pension saw an increase of over 15 per cent as the government recently announced to expand of the ambit of one rank one pension scheme.
For capital expenditures, including the purchase of new weapons, aircraft, warships, and other military hardware, a total of Rs 1.62 lakh crore has been set aside. The financial allotment for capital outlay for 2022–2023 was Rs 1.52 lakh crore, but the updated estimate put the cost at Rs 1.50 lakh crore.
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An allocation of Rs 2.70 lakh crore has been earmarked for revenue expenditure. It includes expenses on payment of salaries and maintenance of establishments, among others.
Out of Rs 2.70 lakh crore, the government has also set aside Rs 4266 crore for the Agnipath scheme, including Rs 3800 crore for Agniveers in the Army.
For the Ministry of Defence (civil), the government has earmarked Rs 22.6 crore.
Under the capital outlay, the Army has been allocated Rs 37,241 crore in 2023-24 against Rs 32,015 last year. The Indian Navy has received Rs 52,805 crore, this time against Rs 47,590 last year, while the Indian Air Force would be receiving Rs 57,137 crore against Rs 55,586 crore.
In the revised estimate, the Army and Navy used more funds than they were allocated, while the Indian Air Force spent Rs 2,000 less than what it was given.
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