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Union Budget 2026: Defence Budget pegged at ₹7.85 lakh crore; 15% increase over current fiscal

Updated - February 01, 2026 05:01 pm IST - New Delhi The overall defence Budget has seen a hike of 15% over last year’s outlay. (Representational image). | Photo Credit: /iStockphoto Union government on Sunday (February 1, 2026) set aside ₹7,84,678 crore as defence outlay for 2026-27 over the current fiscal's allocation of ₹6.81 lakh crore with a major increase in capital expenditure as the military focuses on modernisation in the face of security challenges from China and Pakistan.

Union Budget 2026: Defence Budget pegged at ₹7.85 lakh crore; 15% increase over current fiscal

Credit: Thehindu

Key Highlights

  • Also read | Union Budget 2026 LIVE The increase in the defence outlay against the backdrop of "historic success of Operation Sindoor" has further strengthened our resolve to make India's defence system even more robust, Defence Minister Rajnath Singh said.
  • The overall defence Budget has seen a hike of 15% over last year's outlay.
  • Out of the total allocation, ₹2,19,306 crore has been earmarked for capital expenditure to the armed forces that largely includes purchasing new weapons, aircraft, warships and other military hardware.
  • The capital outlay is over ₹39,000 crore higher than the current fiscal's budgetary estimate ₹1.80 lakh crore.
  • The revised capital outlay for 2025-26 has been estimated at ₹1,86,454 crore.
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Sources

  1. Union Budget 2026: Defence Budget pegged at ₹7.85 lakh crore; 15% increase over current fiscal

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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