NEW DELHI: Calling the 2025-26 Budget for defence status quoist, experts said India needs to build capacity to utilise the allocated funds by strengthening the indigenisation goal.
Defence Budget has been pegged at Rs 6,81,210.27 crore Rs 6,21,540.85 crore for 2024-25, an increase of 9.6 per cent.
Retired Major General Sudhakar Jee said the allocation has declined between 2012-13 and 2023-24 from 16.4% to 12.9%. It stands at 1.9% of the projected GDP for the year. “Having the funds is just one part as we need to have the capacity to utilise the given funds,” he said.
A Rs 1,80,000 crore allocated for the capital expenditure sub-head is an increase of about Rs 8,000 crore. This fund is used for fresh projects and procurements. As per the 2024-25 data, of Rs 1,72,000 crore allocated, Rs 12,500 crore had to be surrendered as it remained unspent.
“To push modernisation and fill the capability gap, the defence budget should be around 2.4% of the GDP,” said retired Commodore Anil jai Singh. “The budget appears to be status quoist as the international dynamics and the geo-politics is changing fast. Modernisation and capacity building require funds,” he added.
“Of the Rs 26,817 cr allocated to DRDO, Rs 14,924 is meant for its capital procurement and R&D. So, this does not reflect well for a country which is aiming to match the niche/high end technology,” Singh said.