Delay in procurement, lethargy in acquisition … Ministry of Defense will return ₹ 12,500 crore, this time 9.53% increase in budget – Defense Ministry will return 12500 Crore this time the budget incredible by 10 percent ntcpas
The Ministry of Defense is preparing to return ₹ 12,500 crore from its allotted budget for its last year i.e. 2024–25. According to the information, funds allocated for capital acquisition could not be fully used. This time the budget of the Ministry of Defense has increased by 9.53 percent compared to last year. A total of ₹ 6.81 lakh crore has been allocated to the Ministry of Defense. According to the information, the main reason for the low use of last year’s funds is the country’s defense acquisition processes, which are struggling with long delays and complex processes.
What is special in the budget of Ministry of Defense
Out of ₹ 6.81 lakh crore for 2025–26, ₹ 1.8 lakh crore has been allocated for capital expenditure, of which ₹ 1.48 lakh crore has been kept for modernization and acquisition of important defense equipment. However, capital allocation has been increased by only 4.65%, which is a matter of concern, especially in terms of inflation and currency fluctuations. The remaining ₹ 31,277 crore has been allocated for the development of infrastructure across the country with research and development, in which ₹ 1.12 lakh crore has been kept for acquisition from domestic industries under the government’s self -sufficient India initiative.
Two major deals more than ₹ 10 billion are expected to end in this financial year. This includes the acquisition of 26 Rafael-M fighter aircraft and three additional Scorpene-line submarines from France. These deals are expected to end during Prime Minister Narendra Modi’s visit to Paris in February 2025. Rafael-M aircraft are important to increase India’s naval capabilities. Apart from this, the army is going to finalize the purchase of ₹ 8,000 crore of 307 advanced Toid Artillery Gun System (ATAGS).
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While the armed forces are facing delays in the acquisition, the Indian Coast Guard (ICG) has received significant increase in its allocation. The budget of ICG has increased by 26.5%, in which capital expenditure has increased by 43%, which is now ₹ 5,000 crore. Additional funds will be used to buy advanced light helicopters, dornier aircraft, fast patrol ships, training ships and interceptor boats, helping ICG to strengthen coastal security and respond effectively to emergency situations.
In an attempt to simplify the acquisition processes, the government has begun to compile the capital expenditure for the three services under the integrated outline. The purpose of this joint approach is to reduce recurrence in acquisition and increase efficiency in acquisition of important equipment such as land, aircraft, arrow-engine and heavy vehicles.
Despite these initiatives, the concerns of the consumption of funds question the efficiency of the acquisition process. Delay in acquisition is often considered due to bureaucratic hurdles, procedural complications and long interactions.
With important deals and reforms, the Ministry of Defense has to face the challenge of removing procedural delays as well as effectively using increased funds, so that India’s defense capabilities are strongly developed in security conditions. Can be done
