Nirmala Sitharaman, the Minister of Finance and Minister of Corporate Affairs of the Government of India since 2019. (ANI)
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Firstpost01-02-2026, 12:47

Union Budget 2026: Defence Allocation Jumps to ₹7.85 Lakh Crore

  • The Union Budget 2026 allocates ₹7.85 lakh crore to the defence sector, a significant increase from ₹6.81 lakh crore in the previous fiscal year.
  • This enhanced allocation underscores the government's commitment to military readiness, modernization, and personnel welfare.
  • The Ministry of Defence's total allocation for FY27 covers defence services (revenue), capital outlay, defence pensions, and civil establishments.
  • Defence spending is a major part of the government's public investment strategy, supporting domestic manufacturing and strategic autonomy.
  • A growing portion of the defence capital outlay will be directed towards domestic industry, promoting self-reliance in defence production.

Why It Matters: India's defence budget sees a substantial increase to ₹7.85 lakh crore, prioritizing modernization and self-reliance.

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