Defence Capex to Soar: 15-20% or Higher in Budget 2026, Says Ex-Def Secy Aramane

• Former Defence Secretary Giridhar Aramane predicts a significant increase in defence allocation for Union Budget 2026, with Capital Expenditure (Capex) potentially rising by 15-20% or more.
• Aramane highlighted that the government has relaxed financial constraints for emergency procurement, indicating readiness for substantial expenditure if the industry is prepared.
• Former Finance Secretary Subhash Chandra Garg supported the need for increased defence outlay, emphasizing its dual benefits: ensuring operational readiness and boosting local industry through economic dimensions.
• Aramane noted that Operation Sindoor in May 2025 revealed critical gaps, leading to ongoing discussions about system improvements.
• The Union Budget 2025-26 allocated ₹6,81,210.27 crore to the Defence Ministry, marking a 9.53% increase from FY 2024-25 and constituting 13.45% of the total Union Budget.

Why It Matters: Defence capital expenditure is projected to increase significantly in Budget 2026, boosting operational readiness and local industry.