Lok Sabha Question No. 3013 (UNSTARRED), answered on 2024-08-09
Subject: Budget Allocation for Defence Sector
Ministry: DEFENCE
Asked by: Smt. Sangeeta Kumari Singh Deo, Smt. Pratima Mondal

## GOVERNMENT OF INDIA MINISTRY OF DEFENCE DEPARTMENT OF DEFENCE

## LOK SABHA UNSTARRED QUESTION NO. 3013

TO BE ANSWERED ON 09 th  August, 2024

## BUDGET ALLOCATION FOR DEFENCE SECTOR

3013 SMT. SANGEETA KUMARI SINGH DEO:

SMT. PRATIMA MONDAL:

Will the Minister of DEFENCE be pleased to state:

- (a) the reasons for silence on defence allocation in the current budget;
- (b)  whether  the  Government  has  made  an  allocation  of  more  than  Rs.  6.22  lakh  crore  for Defence in Union Budget 2024-25;
- (c) if so, the details thereof;
- (d) the other steps being taken by the Government for development of the defence sector in the country; and
- (e) the details of the initiatives taken by the Government to address the concerns of the armed forces?

## A  N  S  W  E  R

MINISTER OF STATE

(SHRI SANJAY SETH)

IN THE MINISTRY OF DEFENCE

- (a)  to  (c):    Allocation  for  Defence  was  part  of  'Demand  for  Grant'  which  was  laid  in  the Parliament  in  this  ongoing  Budget  Session.  As  per  this  document,  the  allocation  made  to Ministry of Defence for financial year 2024-25 under four Grants, is Rs. 6,21,940.85 Crore. Grant-wise allocation of Budget Estimate (BE) 2024-25 (Net) is as follows: -

(Rs. in Crore)

| Grant 19- Ministry of Defence ( Civil)   | Grant 20- (Defence Services Revenue)   | Grant 21-(Capital Outlay on Defence Services)   | Grant 22- (Defence Pension)   | Total       |
|------------------------------------------|----------------------------------------|-------------------------------------------------|-------------------------------|-------------|
| 25,963.18                                | 2,82,772.67                            | 1,72,000.00                                     | 1,41,205.00                   | 6,21,940.85 |

(d):  The Government has taken several policy initiatives in the past few years and brought in reforms to encourage indigenous design, development and manufacture of defence equipment, thereby promoting self-reliance in defence manufacturing & technology in the country. These initiatives, inter-alia, include according priority to procurement of capital items from domestic sources  under  Defence  Acquisition  Procedure  (DAP)-2020;  Notification  of  five  'Positive Indigenization Lists' of total 509 items of Services and five 'Positive Indigenization Lists' of total 5012 items of Defence Public Sector Undertakings (DPSUs), for which there would be an embargo  on  the  import  beyond  the  timelines  indicated  against  them;  Simplification  of Industrial  licensing  process  with  longer  validity  period;  Liberalization  of  Foreign  Direct Investment (FDI) policy allowing 74% FDI under automatic route; Simplification of Make procedure; Launch of Innovations for Defence Excellence (iDEX) scheme involving Startups & Micro, Small and Medium Enterprises (MSMEs); Implementation of Public Procurement (Preference to Make in India) Order 2017; Launch of an indigenization portal namely SelfReliant  Initiatives  through  Joint  Action  (SRIJAN)  to  facilitate  indigenization  by  Indian Industry including MSMEs; Establishment of two Defence Industrial Corridors, one each in Uttar Pradesh and Tamil Nadu; Opening up of Defence Research & Development (R&D) for industry  &  startups.  In  addition,  out  of  the  total  allocation  of  Rs.  1,40,691.24  Crore  under Capital Acquisition (Modernization) Segment, an amount of Rs. 1,05,518.43 Crore (75%) has been earmarked for Domestic Procurement in BE 2024-25.

(e):  Funds are allocated to the Services/Organizations, taking into consideration the projections made by the services & expenditure incurred in the past, committed liabilities, approval stage of various projects/schemes etc. The final estimates are arrived at on the basis of scrutiny and pre-budget  meetings. Keeping  this in view  the  total  Budget allocation made to  Ministry of Defence is Rs. 6,21,940.85 Crore, details of which have been mentioned in part (a) to (c) of the instant reply. In case of any further requirement, additional funds are sought at supplementary/Revised Estimates stages and through re-prioritization. Further, preparedness of the Defence Forces is the first and foremost priority of the Ministry and it is ensured that critical requirements of services do not suffer due to want of the funds.

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