New Delhi, April 1: The Indian Defense Ministry has achieved another milestone in the fiscal year 2025-26. The ministry has fully utilized its capital budget, amounting to ₹1.86 lakh crore. This marks the second consecutive year that the Defense Ministry has used its entire capital budget. Previously, in the fiscal year 2024-25, the full capital budget was also utilized for the first time in several years. Overall, 99.62% of the Defense Ministry’s total budget was used in the fiscal year 2025-26, which includes civilian expenditures and pensions.
Initially, a provision of ₹1.80 lakh crore was made for capital expenditure. However, due to increased operational needs following the first two quarters and Operation Sindoor, the Finance Ministry raised this amount to ₹1.86 lakh crore. A significant portion of this expenditure was directed towards the purchase of modern military equipment, with the highest spending on combat aircraft and their engines.
Additionally, substantial funds were allocated for ground-based weapons, electronic warfare systems, ammunition, shipbuilding, and other military equipment. Major projects for the Army, Air Force, and Navy included multi-role fighter jets, long-endurance drones, specialized naval vessels, and missile systems.
The Defense Ministry states that such effective spending will not only accelerate the modernization of the armed forces but also strengthen infrastructure development in border areas. Furthermore, it will benefit the country’s economy, as capital expenditure impacts various sectors, leading to increased investment and new job opportunities. During the fiscal year 2025-26, the Defense Ministry approved 109 proposals with a total cost of ₹6.81 lakh crore, significantly higher than the 56 proposals approved in the previous year, which amounted to ₹1.76 lakh crore.
In total, 503 capital procurement contracts were signed in 2025-26, amounting to ₹2.28 lakh crore. Preparations for the future are also underway, with the government allocating a capital budget of ₹2.19 lakh crore for the fiscal year 2026-27, which is approximately 22% more than the previous year. This indicates a continued emphasis on modernizing and strengthening the military. Experts suggest that the government is not only providing funds for the defense sector but is also ensuring that the money is spent effectively and timely, benefiting both national security and the economy.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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