Rs 1.80 lakh crore allocated under Capital Budget of Armed Forces; Modernisation a key focus area; Rs 1.12 lakh crore earmarked for procurement from domestic industries
14% increase in allocation for Defence Pension; Rs 8,317 crore allocated for ECHS
12% hike for Defence R&D Budget
Significant jump of 43% in Capital Budget of ICG; Rs 7,146 crore allocated to BRO under Capital Head
Union Budget is a step towards fulfilling the Prime Minister’s resolve of Viksit Bharat by 2047: Raksha Mantri Shri Rajnath Singh
In pursuance of Prime Minister Shri Narendra Modi-led Government’s vision of ‘Viksit Bharat @ 2047’ with technologically-advanced and ‘Aatmanirbhar’ Armed Forces, Union Budget of India has made a provision of Rs 6,81,210.27 crore for Financial Year (FY) 2025-26 for the Ministry of Defence (MoD). This allocation is 9.53% more than the Budgetary Estimate of FY 2024-25 and stands at 13.45% of Union Budget, which is highest among the Ministries.
Out of this, Rs 1,80,000 crore i.e. 26.43% of total allocation will be spent on Capital Outlay on Defence Services. On Revenue Head, allocation for the Armed Forces stands at Rs 3,11,732.30 crore which is 45.76% of total allocation. Defence Pension receives a share of Rs 1,60,795 crore i.e. 23.60% and balance Rs 28,682.97 crore i.e. 4.21% is for civil organisations under MoD. The Ministry has taken a decision to observe 2025-26 as ‘Year of Reforms’ which will further strengthen the resolve of the Government for modernisation of Armed Forces and is aimed for simplification in the Defence Procurement Procedure to ensure optimum utilisation of the allocation.
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