Union Budget 2026: Defence Budget pegged at ₹7.85 lakh crore; 15% increase over current fiscal

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 The wide    defence Budget has seen a hike of 15% implicit    past  year’s outlay. (Representational image).

 The wide defence Budget has seen a hike of 15% implicit past year’s outlay. (Representational image). | Photo Credit: Getty Images/iStockphoto

Union authorities connected Sunday (February 1, 2026) acceptable speech ₹7,84,678 crore arsenic defence outlay for 2026-27 implicit the existent fiscal's allocation of ₹6.81 lakh crore with a large summation successful superior expenditure arsenic the subject focuses connected modernisation successful the look of information challenges from China and Pakistan.

Union Budget 2026 LIVE

The summation successful the defence outlay against the backdrop of "historic occurrence of Operation Sindoor" has further strengthened our resoluteness to marque India's defence strategy adjacent much robust, Defence Minister Rajnath Singh said.

The wide defence Budget has seen a hike of 15% implicit past year's outlay.

Out of the full allocation, ₹2,19,306 crore has been earmarked for superior expenditure to the equipped forces that mostly includes purchasing caller weapons, aircraft, warships and different subject hardware.

The superior outlay is implicit ₹39,000 crore higher than the existent fiscal's budgetary estimation ₹1.80 lakh crore. The revised superior outlay for 2025-26 has been estimated astatine ₹1,86,454 crore.

Under superior expenditure, ₹63,733 crore has been acceptable speech for craft and aero engines, portion ₹25,023 crore is allocated for the naval fleet.

The gross expenditure has been enactment astatine ₹5,53,668 crore that includes ₹1,71,338 crore for pensions.

In her Budget speech, Finance Minister Nirmala Sitharaman projected exempting basal customs work connected components and parts required for the manufacture of civilian, grooming and different aircraft.

She besides announced waiving basal customs work connected earthy materials imported for the manufacture of parts of craft to beryllium utilized successful maintenance, repair oregon overhaul requirements by units successful the defence sector.

The 2 decisions are expected to assistance the defence aerospace industry.

Defence Minister said the "most important" facet of the Budget is the modernisation of the 3 services.

"I explicit my heartfelt gratitude to our Prime Minister Modi ji for allocating ₹ 7.85 lakh crore for the defence sector," helium said.

"Coming aft the historical occurrence of Operation Sindoor, this Budget has further strengthened our resoluteness to marque the country's defence strategy adjacent much robust," helium added.

Mr. Singh said a proviso of ₹2.19 lakh crore has been made for the wide superior expenditure of the equipped forces.

"The astir important facet of this Budget is the modernisation of our 3 services. For this, a proviso of ₹1.85 lakh crore has been made this year, which is astir 24% higher than the erstwhile fiscal year," helium said.

"As a effect of this increase, our subject capableness volition go adjacent much powerful," Mr. Singh added.

The Defence Minister said the payment of ex-servicemen and their families has besides been fixed value successful this Budget.

"Under the Ex-Servicemen Contributory Health Scheme, a proviso of ₹12,100 crore has been made, which is an summation of astir 45% compared to the existent year," helium said.

"This Budget strengthens the equilibrium betwixt security, development, and self-reliance," helium noted.

The allocation for the defence successful the fund works retired to astir 2% of the projected GDP for 2026-27.

The Defence Ministry said the defence outlay focuses connected modernisation, technological innovation and streamlined procurement for optimal assets utilisation.

Published - February 01, 2026 04:47 p.m. IST

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