Ministry of Defence Budget
Past History
The Ministry of Defence (MoD) budget has historically been a
significant component of India's overall budget due to the country's complex
security environment. Traditionally, the budget allocation has been focused on
maintaining a large standing army, modernizing the armed forces, and ensuring
preparedness against threats from neighboring countries like Pakistan and
China. Post-independence, the budget was primarily centered on conventional
warfare and territorial defense. The budget grew during periods of conflict
(e.g., the 1962 war with China, the 1965 and 1971 wars with Pakistan) and
during times of tension, such as the Kargil conflict in 1999. However, there
has often been criticism regarding the underutilization of allocated funds,
delays in modernization, and a skewed focus towards revenue expenditure rather
than capital investment.
Present Status
In recent years, the MoD budget has seen a consistent
increase, with the 2024-25 budget reflecting a continued focus on modernizing
the armed forces and enhancing capabilities in areas such as cyber warfare,
space, and artificial intelligence. The budget allocation for the MoD in the
fiscal year 2024-25 was around ₹5.94 lakh crore, which includes the pension
bill for veterans. A significant portion of the budget is earmarked for capital
expenditure, aimed at procurement of new equipment, modernization of existing
platforms, and infrastructure development. However, challenges persist, such as
balancing the need for modernization with the rising pension costs and ensuring
efficient utilization of funds.
Forthcoming Years
Looking ahead, the MoD budget is expected to continue
growing, driven by the need to counter evolving threats, including cyber and
space-based challenges. The focus is likely to shift towards enhancing
indigenous defense production capabilities under the 'Make in India'
initiative, reducing dependence on foreign arms imports. There may also be an
increasing emphasis on integrating advanced technologies like artificial
intelligence, quantum computing, and unmanned systems into the defense
apparatus. Budgetary allocations will need to balance modernization, pension
liabilities, and the strategic necessity of maintaining a credible deterrent
against regional adversaries.
Ministry of Home Affairs Budget
Past History
The Ministry of Home Affairs (MHA) budget has historically
been focused on internal security, law and order, and disaster management.
Post-independence, the budget allocations were primarily geared towards
maintaining internal stability, addressing insurgencies, and managing border
security. Over the decades, as India faced increasing internal security
challenges from insurgencies in the Northeast, Naxalite movements, and
cross-border terrorism, the MHA budget saw a steady increase. The formation of
specialized forces like the Central Reserve Police Force (CRPF), Border
Security Force (BSF), and National Security Guard (NSG) has been a major area
of budgetary focus.
Present Status
Currently, the MHA budget reflects India's ongoing internal
security challenges, with significant allocations towards paramilitary forces,
modernization of police forces, and border infrastructure development. The
budget for the fiscal year 2024-25 was approximately ₹2.08 lakh crore, marking
a significant increase from previous years. This allocation includes
expenditure on the modernization of police forces, strengthening of
intelligence apparatus, and enhancing border management. The MHA budget also
supports initiatives like the Smart Cities project, which has a component for
improving urban security.
Forthcoming Years
In the coming years, the MHA budget is likely to see further
increases, driven by the need to combat evolving internal security threats,
such as terrorism, insurgency, and cybercrime. The focus may shift towards
enhancing technological capabilities in internal security, including
surveillance, intelligence gathering, and cyber defense. Additionally, the
budget may increasingly support initiatives aimed at improving coordination
between various law enforcement agencies and strengthening disaster management
capabilities in the face of climate change. Investments in infrastructure,
particularly in border areas and the modernization of paramilitary forces, will
continue to be key areas of focus.
These budgetary trends in both the Ministry of Defence and
Ministry of Home Affairs reflect India's broader strategic objectives of
securing its borders, maintaining internal stability, and preparing for
emerging security challenges in a rapidly changing global landscape
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