In the Union Budget for FY2026-27 presented today, the Indian government has allocated an all-time high of ₹7.85 lakh crore to the Ministry of Defence. While some segments saw increases exceeding 20%, the overall defence budget rose by approximately 15.3% compared to the previous year.
Key Budget Highlights:
1. Total Allocation: Increased to ₹7,84,678 crore (approx. ₹7.85 lakh crore), accounting for 14.68% of the total Union Budget.
2. Modernisation Hike: The capital head for modernisation was increased by 21.84% to ₹2.19 lakh crore to fund advanced weapon systems, aircraft, and submarines.
3. Operational Spending: The revenue allocation for day-to-day operations and maintenance rose by 17.24% to ₹3.65 lakh crore.
4. Pensions & Healthcare: Defence pensions were hiked by 6.53% to ₹1.71 lakh crore, while the Ex-Servicemen Contributory Health Scheme (ECHS) saw a massive 45.49% jump to ₹12,100 crore.
Strategic Drivers:
1. Operation Sindoor: The significant boost follows the military conflict with Pakistan known as Operation Sindoor, which highlighted urgent needs for modern technology like drone swarms and unmanned aerial vehicles (UAVs).
2. Aatmanirbharta (Self-Reliance): The budget emphasizes indigenous manufacturing, with a record ₹1.85 lakh crore, or 23.5% of the total defence outlay and 75% of the Capital acquisition budget for 2026-27, earmarked for acquisitions indigenously from domestic industries.
3. Border Infrastructure: Funding for the Border Roads Organisation (BRO) was increased to ₹7,394 crore to accelerate strategic projects in the border regions.
