In response to the ongoing challenges and security concerns at the Indo-China border, the Interim Budget 2024-2025 unveiled a substantial increase in the capital allocation to the Border Roads Organization (BRO). The budget, presented by Finance Minister Nirmala Sitharaman on February 1, 2024, earmarked Rs 6,500 crore for the BRO, marking a 30% rise compared to the allocation in FY 2023-2024 and an impressive 160% surge over the allocation in FY 2021-2022.
Presenting the Interim Budget 2024 in Parliament on Thursday, February 1, the Finance Minister Nirmala informed, the financial provision made during the budget this year, will, apart from promoting strategic infrastructural development in the border areas, also boost socio-economic development in that region along with promoting tourism. Projects such as development of Nyoma Air field in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to southernmost Panchayat of India in Andaman and Nicobar island, 4.1 km strategically important Shinku La tunnel in Himachal Pradesh, Nechiphu tunnel in Arunachal Pradesh and many other projects will be funded out of this allocation.
Simultaneously, the Interim Budget for 2024-2025 places significant emphasis on strengthening the nation’s defense capabilities. With the objective of promoting self-reliance and exports and in response to the evolving geopolitical landscape, the Defence Budget has reached Rs 6,21,540.85 crore.
The Ministry of Defence (MoD) remains the highest recipient of budgetary allocation among all ministries. Notably, the budget for FY 2024-2025 surpasses the previous fiscal year’s allocation by approximately Rs one lakh crore, marking an impressive 18.35% increase over the allocation in FY 2022-2023 and a notable 4.72% growth compared to FY 2023-2024. The allocation is distributed across various segments, with 27.67% allocated for capital, 14.82% for revenue expenditure focused on sustenance and operational preparedness, 30.68% for pay and allowances, 22.72% for defence pensions, and 4.11% for civil organizations under the MoD.
Raksha Mantri Rajnath Singh commended Finance Minister Nirmala Sitharaman for presenting an optimistic and forward-looking ‘Interim Budget.’ He noted that the budget outlines a vision for a confident, strong, and self-reliant ‘Viksit Bharat’ (Developed India). The budget emphasizes infrastructure development, construction, manufacturing, housing, and technology advancement. During the COVID-19 pandemic, India emerged as a beacon of hope for the world, and this budget aligns with Prime Minister Shri Narendra Modi’s ‘Panchamrit Goals,’ paving the way for unprecedented growth in the coming five years.
The increased capital expenditure outlay is considered a massive push that will propel India toward achieving its goal of becoming a $5 trillion economy by 2027. The budget’s focus on strengthening defense and border infrastructure reflects the government’s unwavering commitment to national security and self-reliance.
