NEW DELHI: In a major boost to intelligence gathering, the Centre has increased the Intelligence Bureau's budget by 63 per cent, allocating Rs 6,782.43 crore for 2026-27.
Last year, the Centre had allocated Rs 4,159.11 crore to the bureau, which handles security challenges from terrorism, cyber threats and cross-border espionage. However, there is a setback for the National Intelligence Grid (NATGRID), with its budget cut to Rs 108.98 crore from Rs 149.52 crore—a 27 per cent reduction that raises concerns.
Further, there is a minor increase in budget allocation for India's external intelligence agency, the Research and Analysis Wing (R&AW), under the Cabinet Secretariat.
The Cabinet Secretariat receives Rs 80 crore, up 2.6 per cent from Rs 78 crore in revised estimates. Unexpectedly, there is an 8.4 per cent budget cut for the National Security Council Secretariat, dropping to Rs 256.19 crore from Rs 279.74 crore in the revised estimates for 2025-26, which is a reduction of Rs 23.55 crore for the country's apex security coordination body.
The Intelligence Bureau, the standout feature is capital spending, which skyrockets by 892 per cent from Rs 257 crore to Rs 2,549.54 crore -- the largest infrastructure investment in IB's history.
This increase is allocated to much-needed surveillance systems, cyber intelligence capabilities and technology infrastructure. The revenue expenditure rises by 8 per cent to Rs 4,232.89 crore, covering operational costs. Last year, revenue expenditure stood at Rs 3,902.10 crore.
There is a 27 per cent reduction in the budget allocated to the NATGRID and, most alarmingly, capital spending is slashed by 43 per cent from Rs 91.45 crore to Rs 52.17 crore.
This is expected to impact the critical database integration project designed to counter terrorism and organised crime, said a senior government officer.
NATGRID connects databases from immigration, banking, telecom, and railways to provide real-time intelligence. Its revenue expenditure remains stable at Rs 56.81 crore.
Regarding the budget allocation to the Cabinet Secretariat, under which the R&AW operates, it has received Rs 80 crore, up 2.6 per cent from Rs 78 crore in revised estimates.
Revenue expenditure rises to Rs 77.07 crore from last year's Rs 74.59 crore, while capital spending decreases to Rs 2.93 crore from Rs 3.41 crore.
Of the NSCS allocation, Rs 166.34 crore has been earmarked for revenue expenditure — an increase of just 1.5 per cent from Rs 163.93 and Rs 89.85 crore for capital expenditure, which is down 22.4 per cent from Rs 115.81 crore. This represents a Rs 25.96 crore cut in capital spending.
