Budget 2024: BRO gets capital outlay of ₹6,500 crore, 30% higher than FY24 amid India-China border dispute

Given the long-standing border dispute with China, the government will continue to pump in more money to build roads near the China border even after spending 30% more than planned in FY 24.

India will match the 65 billion rupees ($783.41 million) above the amount scheduled for the Border Roads Organisation (BRO) in the present year to construct roads next year. The decision to raise funding for the organisation was taken "in the light of the continued threat perception faced at the Indo-China border," the government said in a statement after presenting the budget, reported Reuters.

India and China have been in a military standoff since July 2020, when at least 24 Indian and Chinese troops were killed in one of the worst clashes between the two sides in five decades. 

Initially, the BRO was given 5000 crore rupees for the financial year 2023-24 that ends on March 31. For the next year, the government has allocated 6.25 trillion rupees for defence for next year due to the "current geopolitical scenario and with the twin objective of promoting self-reliance and exports". 

Since the Galwan valley clashes that took place between Indian and China Army soldiers in 2020, military and diplomatic talks have helped to ease tensions. However, the situation is tense and there were reports of clashes in 2022 as well.

In the interim budget announced on Thursday, Nirmala Sitharman's budget has given a 13% share of the budget to the defence sector. Defence sector received the highest allocation of the interim budget on Thursday. The sector received an allocation of ₹6.2 lakh crore. Whereas, the Ministry of Agriculture and Farmers' Welfare received the smallest share of the budget of ₹1.27 lakh crore.