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.

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.

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.