Union Budget 2025: Defence Budget gets enhanced by Rs 59,669 crore

Total budget for the Ministry of Defence budget stands at Rs 6,81,210 crore
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NEW DELHI: The Defence Budget allocated by the government for 2025-26 for the Ministry of Defence has been pegged at Rs 6,81,210.27 Crore. The allocation for the same was Rs 6,21,540.85 crore for 2024-25. It is an increase of Rs 59,669.42 crore.

Last year's budget allocation was increased by Rs 28,003.21 crore over the Defence Budget for 2023-24 which was Rs 5,93,537.64 lakh crore.

With this, in percentage terms, the Defence Budget for the Financial Year 2025-26 has been increased by 9.6 per cent.

As a breakup of the Budget Estimate (2025-26), it comes to the Capital Outlay of Rs 180,000 crore, Defence Services (Revenue) is to the tune of Rs 311,732 crore (282,773) and the Defence Pensions will be Rs 160,795 crore. For the years 2024-25, it existed at Rs 172,000 crore, Rs 282,773 and Rs 141,205 under the Capital, Revenue and Pension subheads respectively.

Capital Outlay is for fresh purchases of the systems, equipment and raising of the military infrastructure. Allocation to the Armed Forces for revenue expenditure (Other than Salary) is meant for sustenance and operational commitment.

The Capital Budget has been increased by 4.65 per cent over the budgetary allocation for capital expenditure in FY 24-25, it was Rs 1.72 lakh crore.

The BE (Budget Estimate) is the estimated prediction of the fund required in the current financial year. The updated projections that reflect changes in actual revenue and spending compared to budget estimates (BE) are RE (Revised Estimates).

The Defence Research and Development Organisation (DRDO) has got Rs 14,923 crore for its research and development works. Allocation for aircraft and aero engines, Rs 48,614 crore has been earmarked for this financial year against Rs 46,591 crore last year.

The seven public enterprises, corporatised from Defence Ordnance Factories, have been given a total of Rs 1494 crore.

A defence pension of Rs 1.60 lakh crore has been earmarked for FY 2025-26 against Rs 1.57 lakh crore RE and 1.41 lakh crore BE.

The Infrastructure build-up picked pace with the May 2020 standoff with China in Eastern Ladakh and it continues to be in focus. The Border Roads Organisation has been allocated Rs 7,134 crore against Rs 6,500 crore.

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