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Defence Capital Expenditure 2024-25: Areas of Surplus/Shortfall

Security Risks Research

There was some consternation over the Ministry of Defence surrendering Rs 12,000 Crore on the capital account for the Budget year 2024-25.


Based on the Summary of Budget Estimates Demand No 21 Ministry of Defence Capital Budget, the differences in Budget Estimates and the Revised Estimates item wise is as given below.




Allocations BE 2024-25

Surender/Surplus

Land

-1486.41

Aircraft and Aero Engines

6313.80

Heavy and Medium Vehicles

-545.01

Other Equipments

-15608.54

Joint Staff

1112.00

Procurement of Rolling Stock

-24.00

Ex- Servicemen Contributory Health Scheme

0.00

Rashtriya Rifles

27.00

National Cadet Corps

0.00

Construction Works

-1455.13

Naval Fleet

1805.00

Naval Dockyard/ Projects

-1412.00

Special Projects

-423.63

Total

-11696.92

[Note - Surrender shown as [-] with Minus sign and additions in whole numbers]


It is observed that the largest amount surrendered is in the category of Other Equipment that essentially includes artillery and air defence assets. While the details are obviously not provided possibly being confidential in nature, one possibility could be the provisioning for acquisition of the S 400 air and defence missile system from Russia which Moscow has not been able to provide with the ongoing war in Ukraine.




At the same time with Fire Power and Air Defence having emerged as the clear lessons of the War in Ukraine, a short fall in acquisitions in this sphere should be of concern.


At the same time it is heartening to Note that sums have been absorbed in surplus in the Aircraft and Aero Engines, Naval Fleet and for Joint Staff Acquisitions hopefully creating capabilities.




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