Union Budget 2026: Defence Allocation Soars to Rs 7.85 Lakh Crore
The Union Budget 2026-27 has delivered a major boost to defence, with total allocation rising sharply to Rs 7.85 lakh crore. This marks a significant 26% increase from the previous year’s Rs 6.21 lakh crore, underlining the government’s focus on military modernisation and national security.
Key Takeaways
- Total Defence Budget: Rs 7.85 lakh crore for 2026-27.
- Capital Outlay: Rs 3.25 lakh crore for new weapons and hardware.
- Revenue Expenditure: Rs 3.45 lakh crore for salaries and maintenance.
- Defence Pensions: Rs 1.15 lakh crore allocated.
Breakdown of Defence Spending
The budget provides a substantial boost for capital outlay, which funds the acquisition of new weapons, aircraft, warships, and military hardware. This allocation has been raised to Rs 3.25 lakh crore from Rs 2.52 lakh crore in the previous year.
Revenue expenditure, covering day-to-day operational costs, salaries, and maintenance, also sees a significant rise to Rs 3.45 lakh crore.
A major portion, Rs 1.15 lakh crore, is dedicated to pensions for retired military personnel.
Focus on Self-Reliance and Modernisation
Finance Minister Nirmala Sitharaman, presenting the budget, stated that a strong and self-reliant defence sector is key to a secure ‘Viksit Bharat’. The increased funding is expected to accelerate key procurement programmes for fighter jets, submarines, missiles, and unmanned systems.
The budget continues support for domestic defence manufacturing under the ‘Aatmanirbhar Bharat’ initiative, with a focus on research, development, and private sector participation.
Expert Analysis and Debate
Defence experts have welcomed the hike, noting it addresses critical modernisation needs. However, some point out that a large share still goes towards revenue and pension costs, sparking debate on the optimal balance between manpower expenses and capital for new technology.
