Capital expenditure can be increased by 7-8 percent
Budget 2025: Now only a few days are left for the budget to be presented for the financial year 2025-26. Union Finance Minister Nirmala Sitharaman will present the country’s budget for the financial year 2025-26 on February 1, 2025. This will be the 8th budget of Nirmala Sitharaman. This will be the second budget after PM Narendra Modi becomes Prime Minister for the third time. Prime Minister Narendra Modi has always been very serious about the defense sector of the country and this time too it is expected that the government can make some big announcements regarding the security of the country.
Moderate increase expected in defense budget
Experts believe that this time the government may make a ‘moderate’ increase in the budget allocated for the defense sector. Like previous years, this year too the central government will pay special attention to modernization and self-reliance. For fiscal year 2024-2025, the government had allocated Rs 6.22 lakh crore for the defense sector, which was 4.79 percent higher than fiscal year 2023-24. Last year, in the budget presented in July after the formation of the new government, the government had announced a capital expenditure (capex) of Rs 1.72 lakh crore for defence. The budget included Rs 6500 crore for border roads, Rs 7651 crore for coastal security and Rs 518 crore for innovation under the iDEX scheme.
Capital expenditure can be increased by 7-8 percent
According to experts, capital expenditure for defense can be increased by 7 to 8 percent like previous years. Rs 1.9 lakh crore can be allocated for defense in this budget. In this, allocation for army vehicles and navy can be increased. Whereas, the allocation for aerospace can be kept as it is.
Huge opportunity for import substitution
Analysts at PhillipCapital said in a recent report, “India had allocated $84 billion for defense in the year 2023. With this, India had reached the fourth position in terms of spending the most on defence. Defense The $84 billion allocated for defense is 2.4% of the country’s total GDP. However, about 35% of India’s defense needs are still met through imports. Which is a huge opportunity for import substitution.”
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