New Delhi: The Union government has earmarked Rs 6,81,210 crore as the defence budget for the fiscal year 2025-26, a marginal increase from the current fiscal’s allocation of Rs 6,21,940 crore, with focus on modernising the armed forces in an evolving security landscape.
Out of the total allocation, Rs 1,92,387 crore has been designated for capital expenditure, aimed primarily at acquiring new weapons, aircraft, warships, and other critical military hardware, an increase from the Rs 1.72 lakh crore allocated in 2024-25. Approximately Rs 13,500 crore remained unutilised in the current fiscal.
The revenue expenditure, which covers day-to-day operational costs, salaries, and pensions, has been pegged at Rs 4,88,822 crore. This includes Rs 1,60,795 crore allocated specifically for defence pensions.
Breakdown of capital expenditure:
- Aircraft and aero engines: Rs 48,614 crore
- Naval fleet: Rs 24,390 crore
- Other equipment: Rs 63,099 crore
- Naval dockyard projects: Rs 4,500 crore
The defence outlay for 2025-26 is estimated to be around 1.91% of the GDP.
Presenting her eighth consecutive Budget, Sitharaman emphasised fiscal prudence while focusing on key sectors, including defence. The government aims to reduce the fiscal deficit to 4.4% of GDP for the next financial year, down from the current 4.8%. To cover this shortfall, the Centre plans to raise Rs 11.54 lakh crore from the market.
Rs 28,682 crore for Ministry of Defence (Civil)budge
For 2025–26, the Ministry of Defence (Civil) has been allocated Rs 28,682 crore, an increase from Rs 25,963 crore in the previous year. This funding will support administrative and auxiliary functions critical for effective defence management, with a focus on policy planning, research, and support systems to improve the overall efficiency of the armed forces.
Meanwhile, Prime Minister Narendra Modi has termed the Budget “Viksit Bharat Budget 2025” and said that it has a 360-degree focus on manufacturing to empower entrepreneurs, MSMEs and small businesses. He also said that it will greatly benefit the middle class after the finance minister announced that there will be no tax on earnings up to Rs 12 lakh.
“The Budget will empower the agriculture sector and give boost to rural economy,” the PM added.
India’s defence budget for 2025-26 totals Rs 6.81 lakh crore, a slight increase from the previous year. Capital expenditure, focused on modernizing the armed forces, is Rs 1.92 lakh crore. Revenue expenditure, covering operational costs and pensions, stands at Rs 4.89 lakh crore. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
