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MoD allocates all-time high of Rs 7.85 lakh crore in budget 2026-27; 15% higher over budgetary estimates of FY 2025-26

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MoD allocates all-time high of Rs 7.85 lakh crore in budget 2026-27; 15% higher over budgetary estimates of FY 2025-26

New Delhi, Feb 01: In the Union Budget post Operation Sindoor, Defence Services have received an unprecedented allocation amounting to Rs 7.85 lakh crore for the Financial Year (FY) 2026-27. This allocation stands at 2% of the estimated GDP for the next Financial Year and shows a significant increase of 15.19% over the Budgetary Estimates (BE) of FY 2025-26. Total Defence budget is 14.67% of the Central Government expenditure and is the highest among the Ministries.

In addition to the modernisation of the Armed Forces and financing their regular requirement, the significantly enhanced allocation will also cater for the financial requirements that have arisen due to the emergency procurement of arms and ammunition made subsequent to Operation Sindoor under both the categories viz. Capital and Revenue. A large share of the defence budget to the tune of Rs 2.19 lakh crore has been allotted for capital expenditure vis-à-vis Rs 1.80 lakh crore which was allotted as BE of FY 2025-26. Through this enhanced provision, the Government has reaffirmed its resolve to transform the Armed Forces and their capabilities to the world’s highest standards with a strategic shift towards the goal of Aatmanirbhar Bharat.

Out of the total allocation made to the Ministry of Defence (MoD), a share of 27.95% is for capital expenditure, 20.17% for revenue expenditure on sustenance and operational preparedness, 26.40% for revenue expenditure on pay and allowances, 21.84% for Defence Pensions and 3.64% for civil organisations.

Modernisation of Armed Forces – a strategic objective

For FY 2026-27, budgetary allocation under capital head to the Defence Forces stands at Rs 2,19,306.47 lakh crore, which is 21.84% more than the Budget Estimates of FY 2025-26. Out of this, Rs 1.85 lakh crore is earmarked for Capital Acquisition, which is approximately 24% higher than the Capital Acquisition budget for FY 2025-26. In the current geo-political scenario, quantum jump in the modernisation budget is a strategic imperative. During FY 2025-26, up to 3rd quarter i.e., till December 2025, MoD has concluded contracts worth Rs 2.10 lakh crore and has, so far, given Acceptance of Necessity approval for more than Rs 3.50 lakh crore. The upcoming projects under capital acquisition will equip the Armed Forces with next generation fighter Aircraft, smart and lethal weapons, ships/submarines, Unmanned Aerial Vehicles, Drones, Specialist Vehicles, etc.

Thrust on Aatmanirbharta

Interruption in global supply chains and prioritization of domestic requirements over foreign sellers has re-emphasised the need for import substitution and going for indigenisation not only for sustenance but for future modernisation. In line with this, MoD’s policy to earmark funds to boost domestic industries through budgetary policies has been further strengthened by earmarking Rs 1.39 lakh crore i.e., 75% of the Capital Acquisition budget for procurement through domestic industries during the FY 2026-27. Through such earmarking of funds, domestic players have been reassured about their investment and their increasingly greater role in capability development of the Armed Forces. Enhanced allocation for Capital Acquisition, especially for domestic industries, will have long term positive impact on the national economy and will lead to development of many ancillary industries, creating job opportunities in the country.

Defence budget has made a provision of Rs 3,65,478.98 crore for spending under revenue heads. This allocation is 17.24% higher than the allocation for BE 2025-26. Out of this, Rs 1,58,296.98 crore has been allocated for operation and sustenance related expenditure and the remaining for salary and allowances. The budgetary provision made in this regard for the upcoming FY will facilitate procurement of operationally important stores, spare parts etc. and will ensure maintenance of vital platforms in addition to catering for their day-to-day requirements.

Major Thrust on Border Area Development

The Government has reiterated its commitment to providing better infrastructure in border areas through higher allocation to the Border Roads Organisation (BRO). Accordingly, budgetary allocation to BRO under Capital for BE 2026-27 has been enhanced to Rs 7,394 crore from Rs 7,146.50 crore for FY 2025-26. The said allocation will cater to many strategically significant projects such as tunnels, bridges, airfields, etc. and will promote regional development and tourism, along with providing last mile connectivity in the border areas.

Healthcare to Veterans

The Government is committed to providing best healthcare facilities to the veterans and their dependents through enhanced allocation to the Ex-Servicemen Contributory Health Scheme (ECHS). In the annual budget for FY 2026-27, an amount of Rs 12,100 crore has been allotted to ECHS which is 45.49% higher than the current year allocation at BE stage. The said allocation will fund the Medical Treatment Related Expenditure (MTRE) of veterans. The allocation to ECHS has been increased by more than 300% in the last five years vis-a-vis the allocation made at BE stage for FY 2021-22.

Fostering R&D in Defence

The budgetary allocation to Defence Research and Development Organisation (DRDO) has been increased to Rs 29,100.25 crore in FY 2026-27 from Rs 26,816.82 crore in FY 2025-26. Out of this allocation, a major share of Rs. 17,250.25 crore is allocated for capital expenditure.

Increase in Defence Pension Budget

Total Budgetary allocation on account of Defence pensions stands at Rs 1,71,338.22 crore, which is 6.56% higher than the allocation made during 2025-26 at BE stage. It will be spent on the disbursement of monthly pension to more than 34 lakh pensioners through SPARSH and other pension disbursing authorities.

Through a post on X, Raksha Mantri Rajnath Singh expressed gratitude to Prime Minister Narendra Modi and stated that under his visionary leadership, India’s journey towards a Viksit Bharat continues to gather momentum. He also congratulated Finance Minister Smt Nirmala Sitharaman for presenting a budget that seeks to “transform aspiration into achievement” and “potential into performance”. This “Yuva Shakti–driven Budget” will further strengthen PM Modi’s vision of an Aatmanirbhar and Viksit Bharat, he said.

Raksha Mantri added that inspired by the three ‘Kartavyas’, this budget aims to accelerate and sustain economic growth, fulfil the aspirations of the people and ensure meaningful participation for all. “Together, these priorities will drive inclusive development, promote the manufacturing sector, and create sustainable infrastructure. This budget is designed to ensure that the dividends of growth reach every section of society, with special focus on the poor, the underprivileged, and the disadvantaged,” he said.

Rajnath Singh thanked PM Modi for allocating Rs 7.85 lakh crore to the defence sector in the Union Budget 2026-27, stating that the budget strengthens the security-development-self-reliance balance, and it is in the best interest of the nation. He asserted that the budget, which comes after the historic success of Operation Sindoor, further strengthens the Government’s resolve to bolster the security system of the country and enhance military capabilities.

On the enhanced allocation under ECHS, Raksha Mantri termed it as a testimony to the Government’s resolve of ex-servicemen welfare.

Greater Kashmir

Union budget signals push for developed India, shows strong focus on J&K: JCCI

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Union budget signals push for developed India, shows strong focus on J&K: JCCI

Jammu, Feb 01: The Union Budget 2026 reflects a strong push towards building a developed India and an additional Rs 2,000 crore allocation for Jammu and Kashmir reflects the Union government’s focus on its development, an industry official said on Sunday.

The President of the Jammu Chamber of Commerce and Industries (JCCI), Arun Gupta, said that J&K has remained under the special focus of the Union Government, and the additional allocation of Rs 2,000 crore is a direct message that its focus is on the Union Territory and its development.

“I feel that this budget reflects a move towards a developed India. Every sector has been given priority, and each has been provided adequate space,” he told reporters here.

Union Finance Minister Nirmala Sitharaman has proposed an allocation of Rs 43,290.29 crore for Jammu and Kashmir in the Budget, nearly Rs 2,000 crore higher than the current financial year.

Terming the budget as balanced, the JCCI president said that its proper implementation at the state level would ensure benefits reach people across all sectors.

He said that the budget has made provisions for sectors including industry, MSMEs, semiconductors, education, defence, agriculture and sports, ensuring balanced growth across the economy.

“As far as Jammu and Kashmir is concerned, the budget session is scheduled to begin from tomorrow. However, the increased allocation by the Union Government clearly sends a message that it is serious about the development of the Union Territory,” he said.

He said that JCCI wants Jammu and Kashmir to progress in the same way as other states are developing. “In fact, I believe that with a special approach, the Union Government should focus on Jammu and Kashmir. Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation of Rs 2,000 crore is a direct message that its focus is on Jammu and Kashmir and its development,” he added.

He said that Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation indicates its commitment towards accelerating development in the region.

Responding to concerns over possible misuse of funds, he said that there is clarity in the government’s approach and focus.

Referring to repeated statements by Chief Minister Omar Abdullah during pre-budget discussions and industrial development programmes, he said that the government has emphasised ensuring the survival of existing industries and providing them necessary support.

He further said that sectors like tourism, education and other key areas would also receive focused attention. “Our effort will be to work with sincerity across all sectors and ensure that no stakeholder feels neglected,” he added.

Greater Kashmir

What gets cheaper and what costs more

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What gets cheaper and what costs more

New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Sunday presented her record ninth Union Budget, with a sharp focus on economic growth, job creation and higher capital expenditure, while keeping income tax slabs unchanged.

The Budget brings relief on several essential items through customs duty cuts, making products such as cancer drugs and household appliances cheaper. At the same time, higher levies on select goods and services will push up prices of luxury items, imported liquor and derivatives trading.

Here’s a look at what becomes cheaper and costlier after Budget 2026:

Items set to become cheaper

Cancer drugs:

Basic Customs Duty (BCD) has been removed on 17 cancer-related drugs, significantly reducing the cost of life-saving oncology treatments.

Drugs for rare diseases:

Seven additional rare diseases have been brought under customs duty exemption. Personal imports of medicines, foods and therapies for these conditions will now be duty-free.

Foreign tourism packages:

Overseas travel is expected to become cheaper after the Tax Collected at Source (TCS) on foreign tour packages was reduced from five per cent to two per cent.

Foreign education:

Education abroad may cost less, with a lower TDS rate announced under the Liberalised Remittance Scheme (LRS) for education-related expenses.

Microwave ovens:

Basic Customs Duty on microwave ovens has been exempted, making them more affordable.

Shoe upper exports:

Exports of shoe uppers will now be duty-free, lowering costs for manufacturers and exporters.

Sports equipment:

With renewed emphasis on the Khelo India Mission, sports equipment is expected to become cheaper.

Aircraft components:

BCD has been exempted on components and parts required for manufacturing civilian, training and other aircraft, giving a boost to India’s aviation ecosystem.

Smartphones and tablets made in India are also expected to get cheaper.

Items likely to get costlier

Luxury goods:

Premium products such as high-end watches and imported alcoholic beverages will become more expensive due to higher duties.

Coffee machines:

The removal of duty exemptions on coffee roasting, brewing and vending machines is expected to push up prices of specialised coffee equipment.

Fertilisers:

Import fee exemptions on ammonium phosphate and ammonium nitro-phosphate have been withdrawn, likely increasing fertiliser costs.

Futures and options trading:

Derivatives trading will become more expensive following a hike in Securities Transaction Tax (STT).

STT on futures increased from 0.02% to 0.05%

STT on options increased from 0.1% to 0.15%

Income tax misreporting:

Penalties for misreporting income have been raised, with offenders now liable to pay a penalty equal to 100% of the tax amount.

Greater Kashmir

‘Historic’ Budget reflects aspirations of 140 crore Indians: PM Modi

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‘Historic’ Budget reflects aspirations of 140 crore Indians: PM Modi

New Delhi, Feb 01: Prime Minister Narendra Modi on Sunday described the Union Budget 2026-27 as “historic”, saying it reflected the aspirations of 140 crore Indians and strengthened the reform journey and charts a clear roadmap for Viksit Bharat.

In his televised post-budget comments on the Budget, presented by Union Finance Minister Nirmala Sitharaman in Lok Sabha, Modi also said the budget was a “highway of opportunities”.

“Today’s budget is historic. It reflects the aspirations of 140 crore Indians. It strengthens the reform journey and charts a clear roadmap for Viksit Bharat,” he said.

The prime minister said the budget reflects the empowered presence of the nation’s feminine strength. He said Sitharaman has set a new record by presenting the country’s budget for the ninth consecutive time.

Modi said this year’s budget presents an ambitious roadmap to give new momentum to the ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives.

“This budget is the foundation for our journey towards a Viksit Bharat by 2047. This year’s budget will give India’s reform express new energy and new momentum,” he said.

The prime minister said India is not content with simply being the fastest-growing economy and the Budget strengthens the foundation of India’s bright future.

“This budget further strengthens India’s global role. The 1.4 billion citizens of India are not satisfied with being just the fastest-growing economy. We want to become the world’s third-largest economy as soon as possible. This is the resolve of millions of countrymen,” he said.

Modi said this budget embodies the vision of trust-based governance and a human-centric economic framework and it is a distinctive budget that prioritises reducing the fiscal deficit and containing inflation while balancing high capital expenditure with robust economic growth.

He also said the support that MSMEs have received in this year’s budget will give them new strength to grow from local to global.

Greater Kashmir

Fresh snowfall in higher reaches of south Kashmir

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Fresh snowfall in higher reaches of south Kashmir

Srinagar, Feb 01: Parts of Kashmir received fresh snowfall while rains lashed the plains as the night temperature rose above the freezing point at some places, including Srinagar city, officials said on Sunday.

Snowfall was witnessed in higher reaches of Pahalgam in Anantnag district and Qazigund area of Kulgam district while many parts of South Kashmir were hit by rains, the officials said.

They said Srinagar city also witnessed early morning rains.

The minimum temperature in Srinagar city settled at 2 degrees Celsius on Saturday night, up from the previous night’s minus 0.1 degrees Celsius.This was 2.6 degrees above the season’s normal.

While the temperature data for several places, including Sonamarg in Ganderbal district, was not available, the ski resort of Gulmarg in Baramulla district was the coldest recorded place in Jammu and Kashmir at minus 7 degrees Celsius.

Officials said Pahalgam tourist resort in south Kashmir recorded a low of minus 1.4 degrees Celsius, up from minus 2.6 degrees Celsius the previous night. It was 3.8 degrees higher that seasonal normal.

In Qazigund, the minimum temperature settled at 0.4 degrees, while Kokernag recorded zero degree Celsius and Kupwara recorded low of minus 1.7 degrees Celsius. A 20-day ‘Chillai Khurd’ (small cold) began on Saturday, after the culmination of the 40-day harshest winter period, ‘Chillai-Kalan’. Chillai Khurd will be followed by the 10-day ‘Chillai Bachha’ (baby cold).

The meteorological department has said the weather will remain cloudy, and there is a possibility of light to moderate rain or snow, especially in the higher reaches, with thunder or gusty winds at many places on Sunday.

Light rain, with snow in the higher reaches, is possible at scattered to many places on February 2-3, officials said.

Greater Kashmir

‘Welcome this good Budget, don’t play politics over it’, Rijiju tells opposition

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‘Welcome this good Budget, don’t play politics over it’, Rijiju tells opposition

New Delhi, Feb 01: Union Parliamentary Affairs Minister Kiren Rijiju on Sunday said the Union Budget is focused on growth and development, and slammed the opposition parties for “playing politics” over it.

The opposition parties on Thursday criticised the Union Budget presented in Parliament by Finance Minister Nirmala Sitharaman, with the Congress calling it “totally lacklustre” and alleging that it fell woefully short of the hype generated around it.

The Samajwadi Party said the Budget failed to meet people’s expectations, as there was “nothing much” in it.

Asked about the opposition parties’ claim that the Budget had nothing for the common people, Rijiju told reporters, “All the provisions have been made for the common people only. If those in the opposition do not consider themselves common people, what can we do?”

Asserting that the Budget for 2026-27 is focused on growth and development, the minister said, “The country is happy. I believe there is no scope to criticise this Budget. Still, if someone criticises it, it must be politically motivated.”

“I want to urge my friends in the opposition to welcome this good Budget. Don’t play politics over it,” he added.

After the Budget was presented in Parliament, Congress general secretary (communications) Jairam Ramesh said it was “totally lacklustre” and fell “woefully” short of the hype generated around it.

He also said that Sitharaman’s Budget speech was “non-transparent” as it “gave no idea” of the budgetary allocations for key programmes and schemes.

“While the documents need to be studied in detail, it is clear after 90 minutes that Budget 2026/27 falls woefully short of the hype that was generated about it. It was totally lacklustre,” Ramesh said in a post on X.

Samajwadi MP Dimple Yadav claimed the Budget failed to meet people’s expectations.

“There’s nothing much in the Budget… Nothing for women and youth. We wanted the government to raise the budget for education, healthcare, agriculture… However, this Budget has nothing for these sectors,” she told reporters in the Parliament House complex.

Greater Kashmir

Lieutenant Governor Manoj Sinha hails the Budget 2026-27

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Lieutenant Governor Manoj Sinha hails the Budget 2026-27

Jammu, Feb 01: Lieutenant Governor, Shri Manoj Sinha today hailed the Budget 2026-27 as pragmatic which he said will prioritize economic acceleration, create future-ready infrastructure, sustain growth momentum, chart path to $5 trillion economy milestone within few years and comprehensive fiscal strategy will balance growth ambition with social welfare.

Expressing gratitude to the Hon’ble Prime Minister Shri Narendra Modi and Hon’ble Union Finance Minister Smt. Nirmala Sitharaman on development of ecologically sustainable mountain trails in J&K UT, the Lieutenant Governor said that the initiative will generate fresh employment opportunities and invigorate our tourism industry with renewed vigor.

“Budget for 2026-27 emphasizes accelerating economic expansion, strengthening infrastructure, advancing manufacturing capabilities across 7 strategic sectors, while maintaining a steadfast commitment to welfare. It will have a transformative impact in burgeoning industries, renewed momentum for semiconductor advancement through India Semiconductor Mission (ISM) 2.0, and a substantial stride toward diminishing India’s reliance on other countries for rare earth elements with specialized rare earth zones,” the Lieutenant Governor said.

The Lieutenant Governor observed that with Artificial Intelligence, job creation and service sector enhancement taking center stage, India’s competitive edge will strengthen across every economic domain, while this progressive financial blueprint will establish the foundation for comprehensive sectoral expansion and global prominence.

“Budget 2026-27 charts the path to a $5 trillion economy milestone within a few years and presents our ambitious vision to achieve developed economy status in less than 2 decades. The budget also promises unprecedented empowerment for youth, women, and farmers. With manufacturing, infrastructure, MSMEs, healthcare, urban advancement, electronics and supply networks forming the core of the future strategy to maintain the country’s economic momentum, I believe we will be able to expand domestic production and ensure substantial employment generation,” the Lieutenant Governor said.

Greater Kashmir

J-K LG hails Budget 2026-27

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J-K LG hails Budget 2026-27

Jammu, Feb 01: Lieutenant Governor, Jammu and Kashmir, Manoj Sinha today hailed the Budget 2026-27 as pragmatic which he said will prioritize economic acceleration, create future-ready infrastructure, sustain growth momentum, chart path to $5 trillion economy milestone within few years and comprehensive fiscal strategy will balance growth ambition with social welfare.

Expressing gratitude to the Prime Minister Narendra Modi and Union Finance Minister. Nirmala Sitharaman on development of ecologically sustainable mountain trails in J&K UT, the Lieutenant Governor said that the initiative will generate fresh employment opportunities and invigorate our tourism industry with renewed vigor.

“Budget for 2026-27 emphasizes accelerating economic expansion, strengthening infrastructure, advancing manufacturing capabilities across 7 strategic sectors, while maintaining a steadfast commitment to welfare. It will have a transformative impact in burgeoning industries, renewed momentum for semiconductor advancement through India Semiconductor Mission (ISM) 2.0, and a substantial stride toward diminishing India’s reliance on other countries for rare earth elements with specialized rare earth zones,” the Lieutenant Governor said.

The Lieutenant Governor observed that with Artificial Intelligence, job creation and service sector enhancement taking center stage, India’s competitive edge will strengthen across every economic domain, while this progressive financial blueprint will establish the foundation for comprehensive sectoral expansion and global prominence.

“Budget 2026-27 charts the path to a $5 trillion economy milestone within a few years and presents our ambitious vision to achieve developed economy status in less than 2 decades. The budget also promises unprecedented empowerment for youth, women, and farmers. With manufacturing, infrastructure, MSMEs, healthcare, urban advancement, electronics and supply networks forming the core of the future strategy to maintain the country’s economic momentum, I believe we will be able to expand domestic production and ensure substantial employment generation,” the Lieutenant Governor said.

Greater Kashmir

Health Ministry gets 10 per cent rise in allocation, 5 regional medical hubs; training AHPs, caregivers in focus

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Health Ministry gets 10 per cent rise in allocation, 5 regional medical hubs; training AHPs, caregivers in focus

New Delhi, Feb 01: The Union Health Ministry has been allocated Rs 1,06,530.42 crore in the Budget 2026-27, a 10 per cent hike over 2025-26, with the government proposing a scheme to support states in establishing five regional medical hubs in partnership with the private sector to promote India as a prime medical tourism destination.

These hubs will serve as integrated healthcare complexes that combine medical, educational and research facilities, Finance Minister Nirmala Sitharaman said while presenting the Union Budget for 2026-27 on Sunday.

The minister said that existing institutions for Allied Healthcare Professionals (AHPs) will be upgraded and new AHP institutions established in private and government sectors.

“This will cover 10 selected disciplines, including Optometry, Radiology, Anaesthesia, OT technology, Applied Psychology and Behavioural Health, and add 100,000 AHPs over the next five years,” she said.

Sitharaman said that a strong care ecosystem, covering geriatric and allied care services, will be built and, in the coming year, 1.5 lakh caregivers will be trained in allied skills, such as wellness, yoga and operation of medical and assistive devices.

Of the Rs 1,06,530.42 crore allocated for the Ministry of Health and Family Welfare, Rs 101,709.21 crore has been earmarked for the Department of Health and Family Welfare and Rs 4,821.21 crore for the Department of Health Research.

For the first time, the Union Health Ministry has allocated Rs 1,000 crore for the Scheme for Allied Health Care Professionals (AHPs).

Among the centrally sponsored schemes, the allocation for the National Health Mission has been increased from Rs 37100.07 crore in 2025-36 to Rs 39,390 crore in 2026-27. Moreover, the allocation for Ayushman Bharat Pradhan Mantri Jan Arogya Yojna (AB PM-JAY) has been hiked from 8,995 crore to Rs 9,500 crore, marking a rise of 5.6 per cent.

For the National Tele Mental Health Programme, the budgetary allocation has been increased marginally from Rs 45 crore to Rs 51 crore while the National Digital Health Mission has been earmarked Rs 350 crore from Rs 324.26 crore in the 2026-27 fiscal.

The budgetary allocation for autonomous bodies increased from Rs 21,901.98 crore in 2024-25 to Rs 22,343.97 crore in 2026-27.

The allocation for AIIMS, New Delhi, has been increased from Rs 5,238.70 crore to Rs 5500.92 crore, while the ICMR has been earmarked Rs 4821.21 crore, recording around a 10 per cent increase.

Greater Kashmir

J&K gets Rs 43,290 Cr Grant-in-Aid in Union Budget 2026–27

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J&K gets Rs 43,290 Cr Grant-in-Aid in Union Budget 2026–27

Srinagar, Feb 01: Jammu and Kashmir has been allocated ₹43,290.29 crore as grant-in-aid in the  Union Budget for 2026–27 under the Revenue Section, marking an increase over the revised estimates of the current financial year, according to budget documents tabled in Parliament.

The allocation has been made under Demand No. 58 — Transfers to Jammu and Kashmir — and will be accounted for under Major Head 3602, which covers grants-in-aid to Union Territory governments on behalf of the Ministry of Home Affairs.

Budget data shows that actual expenditure on Jammu and Kashmir during 2024–25 stood at ₹46,000.06 crore. However, allocations witnessed a sharp decline in the Budget Estimates for 2025–26, which were pegged at ₹41,000.07 crore. During the course of the year, this amount was marginally enhanced to ₹41,340.22 crore at the Revised Estimates stage.

For 2026–27, the proposed grant of ₹43,290.29 crore reflects an increase of nearly ₹1,950 crore over the revised estimates of 2025–26. Despite this upward revision, the allocation remains below the actual expenditure level of 2024–25, indicating that the Centre has not fully restored earlier funding levels for the Union Territory.

The entire provision has been made under the Revenue Section, with no capital outlay component, underscoring Jammu and Kashmir’s continued dependence on central revenue transfers to meet routine administrative and developmental expenditure.

Greater Kashmir

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