Amid LAC standoff, fortifying defence via modernisation

Tribune News Service

Ajay Banerjee

New Delhi, February 1

In view of rising threats from China and India’s own expansion in the Indo-Pacific, a hike in allocations for modernisation of military, infrastructure and other defence projects has been proposed in the Budget.

The ‘capital head’ of the defence budget for the year 2022-23 will be Rs 1,52,369 crore. This represents an increase of Rs 17,308 crore (12.18 per cent) over the allocation of Rs 1,35,060 crore for the present fiscal.

Overall, the budget for the Ministry of Defence, including the three armed forces, coast guard, DRDO, the Border Roads Organisation (BRO) and pensions, is Rs 5,25,166 crore. This is about 13.31 per cent of the total budget of the country. The allocation for pension amounts to Rs 1,19,696 crore.

The total defence budget represents an enhancement of Rs 46,970 crore (9.82 per cent) over allocation for this year — Rs 4,78,196 crore. The capital allocation for the Indian Air Force is Rs 55,586 crore, Navy Rs 47,590 crore and the Army Rs 32,015 crore.

In order to give push to indigenous domestic enterprises, the Finance Minister said 68 per cent of money for acquisition made by the services was meant to be used for indigenous items. The capital budget for the BRO has been increased to Rs 3,500 crore, which will go into building bridges, roads and tunnels in the Himalayas.

In what could be important for research and development (R&D), a sum of 11,981 crore has been allocated. Of this budget, start-ups and academia private industry will be allowed to claim 25 per cent. The private industry will be encouraged to take up design and development of military platforms and equipment in collaboration with the DRDO and other organisations.

Also, for the fledgling private military equipment making industry, an independent nodal umbrella body will be set up for meeting wide-ranging testing and certification requirements. “The increase in the overall capital budget reflects the government’s resolve towards sustainable enhancement in the modernisation and infrastructure development,” a statement by the MoD said.

The newly created seven Defence Public Sector Undertakings (DPSUs) will be given Rs 1,310 crore.

Defence Minister Rajnath Singh, in a series of tweets, said the Budget would give a fillip to ‘Make in India’, boost demand and build capacities for a stronger, prosperous and confident India.

9.82% hike in budget

• A hike of Rs46,970 cr (9.82%) has been proposed in the defence budget for the 2022-23 financial year
• It stood at Rs4,78,196 crore in the current fiscal
• Overall, a budget of Rs5,25,166 crore has been proposed for the MoD, which is 13.31% of the country’s total budget
• The capital for new acquisitions has been hiked by 12.18%
• Start-ups and private industry can do research funded by the Ministry of Defence

Focus on tunnels

The capital budget for the BRO has been increased to Rs3,500 crore, which will go into building of bridges, roads and tunnels in the Himalayas

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