The evolution of cutting-edge technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Unmanned Aerial Vehicles (UAVs) and standoff weapons have presented new challenges to defence and security systems worldwide. The evolving nature of technological and information warfare has expanded the horizon of modern-day conflict and compelled all nations to re-evaluate and rethink their Research and Development (R&D), defence policies, expenditure and technological capabilities. In this endeavour, the process of capacity and capability enhancement of the Indian Armed Forces is one major obstacle that India encounters, considering its large number of troops. The salaries, pensions, maintenance and other expenses consume nearly 70 per cent of India’s defence budget, leaving insufficient funds for other sectors that require more investment. In this study, we have attempted to address the imbalance of India’s defence expenditure with respect to modern-day technological advancement and threat perceptions. The study argues that the synergy between manpower and technology, which is vital for India’s national security, can be attained by understanding the noteworthiness of defence expenditure, the large size of troops and the capital outlay incurred on them.
Defence expenditure must be aligned with operational requirements and the MoD's capacity to utilise the funds rather than be pegged to a certain percentage of the GDP.
In the regular budget estimates for the Ministry of Defence for 2024–25, there is continuing focus on innovation, domestic procurement, operational readiness and prioritising the well-being of the Service personnel.
The budget estimates for the Ministry of Defence (MoD) for 2024-25 are Rs 621,540.85 crore, constituting 13.04 percent of the total Union Budget and 4.7 per cent higher than BE 2023-24.
Changes in public financial management across the globe have necessitated India to revisit its traditional methods of managing and depicting its public finances. One of the major changes envisaged is a quest to migrate gradually to accrual accounting from the traditional cash-based accounting.
In the Union Budget 2023–24, the estimated allocations for the Ministry of Defence (MoD) are Rs 5,93,537.64 crores, an increase of 13 per cent over BE 2022–23 (Rs 5,25,166.15 crores).
