• Source:JND

Union Budget 2026: In the Union Budget, the government has attempted to send a strong message that it is aware of the dual strategic challenges on the country's borders by increasing the allocation to the defence budget by more than one lakh crore rupees. The hike in budget comes amid uncertainty in the world order.

Rs 7.84 Lakh Crore For Defence

In the Union Budget, defence services have received an unprecedented allocation amounting to Rs 7.85 lakh crore for the Financial Year (FY) 2026-27. This allocation stands at 2 per cent of the estimated GDP for the next Financial Year and shows a significant increase of 15.19 per cent over the Budgetary Estimates (BE) of FY 2025-26.

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The total defence budget is 14.67 per cent of the Central government expenditure and is the highest among the ministries.A large share of the defence budget to the tune of Rs 2.19 lakh crore has been allotted for capital expenditure, vis-a-vis Rs 1.80 lakh crore, which was allotted as BE (budget estimate) of FY 2025-26.

A large part of this will be spent on the purchase of fighter jets and aero engines, and the construction of the Navy's fleet of ships and submarines. Although Finance Minister Nirmala Sitharaman did not mention the country's strategic security challenges or the defense allocation in her budget speech in the Lok Sabha, she avoided being stingy with the defense budget allocation.

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In the context of the deepening strategic challenges on the borders and the strategic experiences of Operation Sindoor, the total defence allocation for 2026-27 has been made at Rs 7,84,678 crore, which is more than Rs 1.03 lakh crore higher than the revised budget of Rs 6,81,210 crore for 2025-26.

Defence Budget Increase: A Strategic Necessity

The defence experts believe that given the dual challenges from China and Pakistan, and the changing internal situations in some other neighbouring countries, India's strategic needs and preparedness require greater momentum, and therefore, the defence budget should be at least three per cent of the total GDP. The way world order is changing due to USA President Donald Trump's capricious decisions, India is also focussing on boosting its defence amid external threats.

The total amount allocated for defense capital expenditure in the budget is Rs 2,19,306 crore, which is approximately Rs 34,000 crore more than the revised capital expenditure of Rs 1,86,454 crore for 2025-26. Under this capital allocation, Rs 63,733 crore will be spent on acquiring aircraft and aero engines. Rs 25,023 crore has been allocated for completing the Navy fleet construction.

In the current geopolitical scenario, a significant increase in the defense budget for military modernisation is a strategic necessity. Under capital procurement, the armed forces will acquire next-generation fighter aircraft, smart and lethal weapons, ships and submarines, unmanned aerial vehicles, drones, specialist vehicles, etc.

This amount will also be spent on the modernisation of the armed forces, meeting their regular needs, and addressing the requirements for emergency procurement of weapons and ammunition following Operation Sindoor.

This allocation will be used for several strategically important projects such as tunnels, bridges, and airfields. The focus will be on last-mile connectivity in border areas. Describing the budgetary allocation as unprecedented, the Ministry of Defence said that through this, the government has reaffirmed its commitment to transforming the armed forces and their capabilities to the highest global standards, along with a strategic shift towards the goal of a self-reliant India.

Defence Minister Rajnath Singh Hails Hike In Budget

I express my heartfelt gratitude to the Prime Minister for the provision of Rs 7.85 lakh crore for the defence sector in this budget. This budget, coming after the historic success of Operation Sindoor, has further strengthened our resolve to fortify the country's defence system. This year, a provision of Rs 2.19 lakh crore has been made for the total capital expenditure of our armed forces. The most important aspect is the modernisation of our three services.

Defence Secretary Rajesh Kumar Singh said, "I am happy with the budgetary allocations announced by the Finance Minister as part of this year's budget... The overall budget for the Ministry of Defence is going to be 7.85 lakh crores, which is a 15 % increase over the allocation for last year. More importantly, in the area of CAPEX, the overall capital expenditure outlay has gone up by 21 % to about 2.9 lakh crores. And most critically, when it comes to the modernisation, budget is actually spent on modern equipment and other technological upgrades required for boosting the capabilities of our armed forces."

(With Jagran.com Inputs)


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