As Finance Minister Nirmala Sitharaman set aside Rs 7,84,678 crore as defence outlay for 2026-27, as against last year's allocation of Rs 6,81,210 crore, Defence Minister Rajnath Singh hailed the move and said the budget has reinforced the resolve to further strengthen the country's defence system.
For more defence news, views and updates, visit: Fortress India
While the total capital outlay has been pegged at Rs 2,19,306 crore for the sector, the revenue expenditure has been put at Rs 5,53,668 crore, that included Rs 1,71,338 crore for pensions.
Under capital expenditure, Rs 63,733 crore has been set aside for aircraft and aero engines, while Rs 25,023 crore is allocated for the naval fleet.
The defence ministry leads with the highest allocation, accounting for 14.6 per cent of the total budget. The increased allocation seeks to strengthen defence preparedness, drive and innovation and reinforce national security.
The defence ministry said the budget marks a "decisive step" towards a technologically advanced and self-reliant future. The ministry said the focus on the increased allocation includes modernisation, technological innovation and self-reliance.
"This year, a provision of Rs 2.19 lakh crore has been made for the overall capital expenditure of our armed forces, and the key focus of this budget is the modernisation of our three armed forces. For this, a provision of Rs 1.85 lakh crore has been made," Singh said, reacting, adding, "In short, this budget strengthens the balance between security, development, and self-reliance."
Singh also claimed that the budget provides a strong foundation for Prime Minister Narendra Modi's vision of a self-reliant, developed India by 2047, with adequate provisions made for the upliftment of all sections of society.