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Defence Budget 2025-26: Key Highlights and Analysis

Defence Budget 2025-26: Key Highlights and Analysis
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Defence Budget 2025-26: Key Highlights and Analysis

AspectsDetails
Total AllocationRs 6,81,210.27 crore (9.53% increase over 2024-25).
Percentage of Union Budget13.45% (highest among all ministries).
Capital OutlayRs 1,80,000 crore (26.43% of defence budget) for modernisation and infrastructure.
Revenue ExpenditureRs 3,11,732.30 crore (45.76%) for pay, allowances, and operational needs.
Defence PensionRs 1,60,795 crore (23.60%) for 34 lakh pensioners.
Civil OrganisationsRs 28,682.97 crore (4.21%).
Modernisation & ProcurementRs 1,48,722.80 crore for acquisitions (aircraft, submarines, AI-driven tech, drones, cyber warfare). 75% (Rs 1,11,544.83 crore) allocated for domestic procurement.
Operational & SustenanceRs 3,11,732.30 crore (10.24% higher than 2024-25), including Rs 1,97,317.30 crore for salaries and 24.25% rise in operational funds.
DRDO & R&DRs 26,816.82 crore (+12.41%), with Rs 14,923.82 crore for R&D in AI, robotics, and space tech.
Startups & InnovationRs 449.62 crore for iDEX & ADITI schemes (tripled in two years). Focus on private sector partnerships and defence startups.
Ex-Servicemen WelfareRs 1,61,000 crore for pensions (+13.87%), Rs 8,317 crore for Ex-Servicemen Contributory Health Scheme (ECHS) (+19.38%).
Indian Coast GuardRs 9,676.70 crore (+26.50%), Rs 5,000 crore for new aircraft, vessels, and patrol boats.
Border InfrastructureRs 7,146.50 crore (+9.74%) for projects in Arunachal Pradesh, J&K, and Rajasthan.

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