The Union Budget for 2025-26 has set aside Rs 6,81,210.27 crore for the Ministry of Defence (MoD), which is a 9.53% increase compared to last year’s budget. This amount represents 13.45% of the total Union Budget, marking it as the largest allocation among all ministries. The budget supports Prime Minister Narendra Modi’s vision of ‘Viksit Bharat @ 2047’ and emphasizes the need for a technologically advanced and self-reliant Armed Forces.
Analysis of Defence Budget 2025
Budget Allocation Breakdown
- Capital Outlay: Rs1,80,000 crore(26.43%) for modernisation and infrastructure.
- Revenue Expenditure: Rs3,11,732.30 crore(45.76%) for pay, allowances, and operational needs.
- Defence Pension: Rs1,60,795 crore(23.60%) for34 lakh pensioners.
- Civil Organisations: Rs28,682.97 crore(4.21%).
Capital Outlay and Modernisation
- Rs 1,80,000 croreallocated,4.65% higherthan last year.
- Rs 1,48,722.80 crorefor acquisitions likeaircraft, submarines, and AI-driven technology.
- 75% of modernisation budget (Rs 1,11,544.83 crore) for domestic procurement.
- Major purchases includedrones, deck-based aircraft, and cyber warfare investments.
Operational and Sustenance Budget
- Rs 3,11,732.30 crorefor revenue expenditure,10.24% higherthan 2024-25.
- Rs 1,97,317.30 croreallocated for salaries.
- 24.25% increase in operational fundsto strengthen border deployments and military readiness.
Boost for DRDO and Defence R&D
- Rs 26,816.82 croreallocated toDRDO, up12.41%.
- Rs 14,923.82 crorefor R&D, focusing onAI, robotics, and space tech.
Encouraging Startups and Innovation
- Rs 449.62 croreforiDEX & ADITI schemes, tripling in two years.
- Focus onprivate sector partnerships and defence startups.
Ex-Servicemen Welfare and Defence Pension
- Rs 1,61,000 croreallocated forpensions,13.87% higher.
- Rs 8,317 croreforEx-Servicemen Contributory Health Scheme (ECHS), up19.38%.
Indian Coast Guard (ICG) Enhancements
- Rs 9,676.70 croreallocated,26.50% higherthan 2024-25.
- Rs 5,000 crorefor new aircraft, vessels, and patrol boats.
Strengthening Border Infrastructure
- Rs 7,146.50 croreallocated toBRO, up9.74%.
- Projects inArunachal Pradesh, J&K, and Rajasthanto boost security and economy
