Union Budget 2026: Huge spike in allocation for defence sector
In the first budget since India’s military offensive against Pakistan, Operation Sindoor, and the four-day intense stand-off between the two countries in May, the Centre allocated ₹7.85 lakh crore to the defence sector for boosting India’s defence capabilities.
This is 15.3 per cent increase, compared to the previous year.
Media reports suggest that the total allocation for defence ministry in FY27 covers defence services (revenue), capital outlay (defence), defence pensions, and civil establishments under the ministry.
The increased allocation signals a continued focus on military readiness, modernisation, and personnel welfare.
Presenting the Budget for 2026-27 in Lok Sabha, Finance Minister Nirmala Sitharaman said India will continue to take steps towards becoming a Viksit Bharat.