The Union Budget, now by the newly sworn-in Modi government or Modi 3.0, as it is being touted by many, is just a day away. The country's finance minister, Nirmala Sitharaman, will present the budget on Tuesday, July 23. The parliament session or the Monsoon session of the 18th Lok Sabha will start on July 22. This session will go on until August 12.
Defence Ministry Tops Allocation
One of the most important aspects that is often looked at is what each sector of the economy draws from the budget. Another purview to understand the intricate world of budgets lies in the allocations that individual ministries get in the budget.
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This is understandably the reason why the current Defence minister or Raksha Mantri, is one of the most senior faces in the cabinet, Rajnath Singh. | Twitter/@PBNS_India
Given India's situation with its neighbours and its engagement in sensitive arenas, the budget has placed greater emphasis on the Defence Ministry. This ministry, according to some, is perhaps the third most crucial portfolio in the Union Cabinet after the Home and Finance ministries.
This is understandably the reason why the current Defence minister or Raksha Mantri, is one of the most senior faces in the cabinet, Rajnath Singh.
Talking about the allocation to this particular ministry, over the past five years and past five budgets alone, the Defence Ministry has consistently received the largest chunk of the budget in the country.
When we start with the 2019-20 budget, the FM Nirmala Sitharaman-led ministry allocated an amount of Rs 4,31,011 crore. When we move a year forward, in the 2020–21 budget, which was the beginning of the COVID pandemic, the budget allocated an amount of Rs 4,71,378 crore.
In the 2021–22 budget, the FM earmarked Rs 4,78,196 crore. Then, in the 2022–23 budget, the Defence ministry got a total sum of Rs 5,25,166 crore. And, in the previous year's budget, the FM allocated Rs 5,93,538 crore.
The Defence Ministry is likely to top the list of ministries with the most allocations this year as well. But, given the changing global dynamics, along with a shift in the world order and the ever-increasing volatility at the Indian borders, the allocation could only increase further. | (Photo by Arun SANKAR / AFP)
37.70% Increase in Allocation
The overall allocation to the ministry has increased by 37.70 per cent in these five budget sessions, between 2019 and 2024.
The Defence Ministry is likely to top the list of ministries with the most allocations this year as well. But, given the changing global dynamics, along with a shift in the world order and the ever-increasing volatility at the Indian borders, the allocation could only increase further.
Not just the ministry, but the sector as a whole, stands to benefit from the self-reliance push that has resulted in the involvement of private parties in defence manufacturing. This budget, in all probability, could further that trend.
