Union Budget 2026–27: Defence Gets Its Strongest Backing Yet
In the Union Budget 2026–27, the Ministry of Defence has been granted a record-breaking ₹7.85 lakh crore, marking the highest-ever defence allocation in the country’s history. This is a 15% jump over FY 2025–26 and accounts for nearly 2% of the projected GDP, making defence the largest-spending ministry with 14.67% of total central expenditure.
This budget arrives in the aftermath of Operation Sindoor, and the message is loud and unmistakable:
security, self-reliance, and readiness are non-negotiable.
Capital Power-Up: Modernisation on Fast-Track
A massive ₹2.19 lakh crore has been set aside for capital expenditure — a 24% surge compared to last year. Of this, ₹1.85 lakh crore is exclusively reserved for capital acquisitions, aimed at equipping the Armed Forces with next-generation fighter aircraft, advanced weapons, warships, submarines, drones, UAVs, and specialised vehicles.
This jump isn’t cosmetic. It’s strategic.
In FY 2025–26 alone (till December), defence contracts worth ₹2.10 lakh crore were signed, while approvals crossed ₹3.50 lakh crore — proof that modernisation is already in motion.
Aatmanirbhar Bharat: Defence, Made in India
The budget doubles down on self-reliance.
A solid ₹1.39 lakh crore, nearly 75% of the capital acquisition budget, has been earmarked for domestic procurement, including private industry.
This isn’t just about cutting imports — it’s about building an ecosystem.
Jobs, ancillary industries, innovation pipelines — the ripple effect strengthens both national security and the national economy.
Operational Readiness: Sustained, Not Compromised
Revenue expenditure has been raised to ₹3.65 lakh crore, a 17.24% increase over last year.
Out of this, ₹1.58 lakh crore is dedicated to operations and sustenance, ensuring platforms remain mission-ready, supplied, and maintained — day in, day out.
Border Infrastructure: Strength at the Edges
The Border Roads Organisation (BRO) receives enhanced capital funding of ₹7,394 crore, supporting strategic roads, tunnels, bridges, and airfields in border regions.
Beyond defence, this push improves connectivity, regional growth, and tourism, delivering development to India’s last mile.
Veterans First: Healthcare with Dignity
The Ex-Servicemen Contributory Health Scheme (ECHS) has been allocated ₹12,100 crore, a 45.49% increase over FY 2025–26.
In the last five years alone, ECHS funding has grown by over 300%, ensuring quality medical care for veterans and their families
R&D Gets a Boost
Defence innovation continues to gain momentum.
The DRDO budget rises to ₹29,100 crore, with ₹17,250 crore earmarked for capital expenditure — strengthening indigenous research, development, and future-ready technologies.
Defence Pensions: Honouring Lifelong Service
A total of ₹1.71 lakh crore has been allocated for defence pensions, a 6.56% increase, benefiting over 34 lakh pensioners through SPARSH and other authorised channels.
Leadership Speaks
Raksha Mantri Shri Rajnath Singh expressed gratitude to Prime Minister Shri Narendra Modi, stating that the budget strengthens the delicate balance between security, development, and self-reliance.
He praised Finance Minister Smt. Nirmala Sitharaman for presenting a budget that converts aspirations into outcomes and potential into performance, calling it a “Yuva Shakti–driven Budget” aligned with the vision of a Viksit Bharat.
Inspired by the three national Kartavyas — growth, inclusion, and participation — the budget aims to ensure that progress reaches every citizen, with special focus on the underprivileged and disadvantaged.
Post Operation Sindoor, this allocation reinforces the government’s unwavering commitment to national security, military strength, and ex-servicemen welfare — not as promises, but as policy.
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