Budget 2023-24: Defence allocation reflects India's security concerns

The Union Budget has allocated ₹5.94 lakh crore for the defence sector, which is a 13 per cent increase compared with the previous year. The budget reflects India’s security concerns over the global changes that have taken place in the wake of the Ukraine war, and the country’s continuing tensions with its neighbours — China and Pakistan.

The major capital expenditure by the tri-services including infrastructure additions and improvements in the next financial year would include about ₹68,000 cr for the Air Force, ₹44,000 crores for the Navy with the lion’s share, as usual, earmarked for the Army.

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For Air Force, the main line items of expenditure include “other equipment” (₹33,223 crores), acquisition of aircraft and aero engines (₹16,422 crores), Heavy and medium vehicles for the air force (₹3,948 crores), and construction projects, mainly of airfields and allied construction in border areas (₹2,342 crores) and “special projects” (₹1,562 crores).

As for Navy, the main line items are Naval Fleet (₹24,200 crores), land-based naval projects (₹1,551 crores), construction works (₹1,900 crores), Naval dockyard projects (₹6,725 crores), and “other equipment” (₹9,500 crores).

The sensitive border with China has received special attention in the allocation, with the defence planners rushing through infrastructure projects in the border areas, both in the Western sector (Ladakh), and Eastern sector (Tawang).

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The defence allocation lays emphasis on improving communication and border areas development, with Optical Fibre Cable based network for Defence Services being allocated ₹2,158 crores against ₹1,961 crores in 2022-23.

Works under Border Roads Development Board will receive ₹5,000 crore, ₹500 cr in excess over the 2022-23 allocation of ₹4,500 crores. Border Infrastructure will get ₹3,545 crores and North-East Special Infrastructure Development which has jumped from ₹2,745 crores last year to ₹3,545 crores.

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“Other works” will receive ₹950 crores against ₹900 crores the previous financial year.

The DRDO, which is mandated with the Atma Nirbharta mission to effect import substitution, is set to receive ₹12,850 crore during the next financial year, against ₹11,982 crores last year.