Defence Budget Hits Record ₹7.85 Lakh Crore with Focus on Self-Reliance and Modernization
In the aftermath of Operation Sindoor, the Union Budget 2026 has allocated a record ₹7.85 lakh crore to the Ministry of Defence, representing 14.67% of the total government expenditure. This reflects a 15.19% increase over the current year's budget estimates. A significant emphasis is placed on 'Aatmanirbharta' (self-reliance), with 75% of the ₹1.39 lakh crore capital acquisition budget earmarked for domestic procurement. Capital expenditure has been raised by 22% to ₹2.19 lakh crore to upgrade military capabilities, including next-generation fighter aircraft, submarines, and smart weapons, while also addressing border infrastructure and veterans' healthcare.
Key Points
- Total defence outlay is ₹7.85 lakh crore, the highest among all ministries.
- 75% of capital acquisition funds (₹1.39 lakh crore) are reserved for domestic industries.
- Capital expenditure is increased by 22% to ₹2.19 lakh crore for modernization.
- Defence spending now constitutes 14.67% of the total Union budget and 2% of estimated GDP.
Exam Facts
- Total Outlay: ₹7.85 lakh crore.
- Domestic procurement share: 75%.
- Capex allocation: ₹2.19 lakh crore.
- Percentage of total expenditure: 14.67%.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.