2nd February 2023 (7 Topics)
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Defence budget 2023
Context
The Union Budget presented in Parliament by Finance Minister allocated Rs 5.94 lakh crore for the Defence Ministry, a 13% increase year-on-year from last year’s budget estimates.
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Summary: Defence Budget Estimates (2023-24): Total allocation: Rs 5.93 lakh crore Revenue allocation: Rs 2.7 lakh crore Capital expenditure: Rs 1.62 lakh crore Pension: Rs 1.38 lakh crore Civil: Rs 22,612 crore |
Highlights for the Defence sector:
- The non-salary revenue outlay has gone up by 44% from Rs 62,431 crore the previous year to Rs 90,000 crore in the Budget Estimates for 2023-24.
- The fund allocated to the sector is for the following purposes:
- This will cater to the sustenance of weapon systems and platforms, including ships and aircraft, and their logistics;
- boost fleet serviceability; emergency procurement of critical ammunition and spares;
- procuring and hiring of niche capabilities to mitigate capability gaps wherever required;
- progress stocking of military reserves; and
- Strengthening forward defences.
- Capex for defence: It received a nominal 7% increase compared with the 33% rise in the country’s overall capital expenditure commitment.
- Capital expenditure for military modernisation also saw a 6.7% rise by Rs 10,230 crore year-on-year to Rs 1.62 lakh crore.
- For Agniveers:
- The enhanced allocations will also cater to training aids and simulators for Agniveers and ensure that they achieve the set standards of training for induction in the defence forces.
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Agniveer Corpus Fund:
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- For pensioners:
- There was also a major hike in the allocation of defence pensions on account of the revision of the One Rank One Pension (OROP) scheme.
- Allocation for the Defence Research and Development Organisation is Rs 23,264 crore, a 9% increase year-on-year.
- Payment of arrears will be paid from July 1, 2019, to June 30, 2022, which have been calculated at approximately Rs 23,638 crore as per the applicable Dearness Relief (DR).
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Dearness relief: Dearness Relief means the relief due to pensioners/family pensioners up to an average CPI of 1510. |
- For logistics and Infrastructure:
- The capital budget of the Border Roads Organisation (BRO) has gone up by 43% to Rs 5,000 crore from Rs 3,500 crore in 2022-23.
- The estimates are committed towards infrastructure strengthening in the border areas, particularly the Northern Borders.
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The BRO is close to finishing some key infrastructure projects in the eastern sector and improving all-weather connectivity along the LAC. |
- For different arms of Force:
- A 6.7% increase year-on-year, Rs 37,242 crore has been earmarked for the Army, a year-on-year increase of 16.32%
- Rs 52,804 crores for the Navy, a y-o-y increase of 10.96% and
- Rs 57,137 crore for the Indian Air Force (IAF), a 2.79% increase on a y-o-y basis.
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