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Key Insights on Defence Allocation in Union Budget 2025-26

Understanding the Budget's Impact on India's Armed Forces

Key Insights on Defence Allocation in Union Budget 2025-26

  • 11 Feb, 2025
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Defence Allocation in Union Budget 2025-26

The Union Budget 2025-26 has allocated a substantial amount of ₹6.81 lakh crore for defence spending. This represents a 9.5% increase from the previous year's allocation of ₹6.23 lakh crore, and is also 6% higher than the revised estimate of ₹6.41 lakh crore for 2024-25.

Focus on Modernisation

From this budget, ₹1.8 lakh crore is specifically earmarked for the modernisation of the armed forces. This focuses on enhancing advanced technologies and capabilities essential for contemporary warfare.

Utilisation of Modernisation Funds

The allocation for modernisation will primarily be used to procure essential military equipment. This includes fighter jets, helicopters, submarines, warships, tanks, drones, rockets, and missiles, ensuring that the armed forces are well-equipped to meet national security challenges.

Promoting Self-Reliance

One of the key aspects of this budget is the promotion of self-reliance in the defence sector. A significant 75% of the modernisation funds will be directed towards purchasing weapons and systems from domestic suppliers, which is a strategic move to bolster India's indigenous defence manufacturing capabilities.

GDP Allocation for Defence Spending

The defence allocation now constitutes 1.9% of the projected GDP for 2024-25, accounting for 13.45% of the government's total budget. This allocation underscores the government's commitment to national security while balancing economic demands.

Breakdown of Defence Budget Allocations

Within the overall defence budget, ₹3.11 lakh crore is set aside for revenue expenditure, while ₹1.6 lakh crore is allocated for pensions. This comprehensive funding structure aims to support both operational readiness and the welfare of armed forces personnel.

Innovation and Entrepreneurship in Defence

An additional ₹450 crore has been allocated to foster innovation and entrepreneurship within the defence manufacturing sector. This initiative aims to encourage new ideas and technologies, ensuring that India remains competitive in defence capabilities.

Addressing Challenges

This increased allocation also addresses several challenges, including inflation and the depreciation of the rupee against the dollar. It aims to bridge the capability gap with other nations, particularly China, enhancing India's strategic position.

Leadership is crucial in translating vision into reality, especially when national security is at stake.

Frequently Asked Questions (FAQs)

Q1. What is the total defence allocation for 2025-26?
Answer: The total defence allocation for the Union Budget 2025-26 is ₹6.81 lakh crore, marking a 9.5% increase from the previous year.

Q2. How much is allocated for modernisation of the armed forces?
Answer: ₹1.8 lakh crore has been allocated specifically for the modernisation of the armed forces, focusing on advanced technologies and capabilities.

Q3. What percentage of the GDP does the defence budget represent?
Answer: The defence budget constitutes 1.9% of the projected GDP for 2024-25, reflecting the government's commitment to national security.

Q4. How does the budget promote self-reliance in defence?
Answer: The budget allocates 75% of the modernisation funds for procurement from domestic suppliers, enhancing self-reliance in the defence sector.

Q5. What is included in the revenue expenditure of the defence budget?
Answer: The budget includes ₹3.11 lakh crore for revenue expenditure, which covers operational costs and personnel welfare.

UPSC Practice MCQs

Question 1: What is the defence allocation for the Union Budget 2025-26?
A) ₹6.23 lakh crore
B) ₹6.81 lakh crore
C) ₹7.00 lakh crore
D) ₹6.41 lakh crore
Correct Answer: B

Question 2: How much is allocated for modernisation in the defence budget?
A) ₹1.5 lakh crore
B) ₹1.8 lakh crore
C) ₹2.0 lakh crore
D) ₹1.2 lakh crore
Correct Answer: B

Question 3: What percentage of the GDP is the defence spending for 2024-25?
A) 1.5%
B) 1.9%
C) 2.1%
D) 2.5%
Correct Answer: B

Question 4: What allocation is set for innovation in defence manufacturing?
A) ₹200 crore
B) ₹450 crore
C) ₹500 crore
D) ₹300 crore
Correct Answer: B

Question 5: What is the primary aim of the modernisation fund allocation?
A) Training personnel
B) Procurement of military equipment
C) Infrastructure development
D) Welfare schemes
Correct Answer: B

Question 6: What is the total amount allocated for pensions in the defence budget?
A) ₹1.6 lakh crore
B) ₹1.5 lakh crore
C) ₹1.7 lakh crore
D) ₹1.8 lakh crore
Correct Answer: A

 

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