The interim budget for 2024, presented by Union Finance Minister Nirmala Sitharaman on February 1, witnessed a significant allocation of ₹6.2 lakh crore to the Defence sector. This allocation marks the highest sectoral allocation for the year. Additionally, Finance Minister Nirmala Sitharaman introduced a new scheme aimed at bolstering deep tech for the defence sector.
In the Union Budget for 2023-24, the government allocated approximately ₹6 lakh crore to the defence sector, which accounted for over 13% of the total budget. This allocation included a capital outlay of ₹1.62 lakh crore, reflecting a 12% increase compared to the previous year. Notably, the capital budget of the Border Roads Organisation (BRO) witnessed a substantial 43% increase, while the Defence Research and Development Organisation (DRDO) received a 9% increase in allocation.
In the 2022-23 Budget, the Finance Minister unveiled a budget of ₹5,25,166 crore for the defence sector, with a capital allocation of ₹1.52 lakh crore. Notably, the allocation for the Border Roads Organisation (BRO) witnessed a significant 40% increase in the 2022 budget.
During the Union Budget 2021-22, the defence sector received an allocation of ₹4.78 lakh crore, which accounted for more than 14% of the total budget for that year. This amount included a capital outlay of ₹1.35 lakh crore, marking an 18.75% increase compared to the previous year – the most substantial rise in 15 years. In the 2020-21 Budget, the defence sector was allocated ₹4.71 lakh crore, representing nearly 15% of the overall budget. This allocation included ₹1,18,555 crore for capital expenditure.