Published: 31 January 2026PIBEconomy
Budget 2026-27: Defence Gets Record ₹7.85 Lakh Crore; Capital Acquisition Up 24% to ₹1.85 Lakh Crore
The Ministry of Defence received the highest-ever allocation of ₹7.85 lakh crore in Union Budget 2026-27, an increase of 15.19% over Budget Estimates of FY 2025-26, accounting for 14.67% of the total Union Budget. Capital allocation to Defence Forces crossed ₹2.19 lakh crore, up 21.84% over FY 2025-26. Of this, ₹1.85 lakh crore was earmarked for capital acquisition — an increase of approximately 24%.
Defence pensions stood at over ₹1.71 lakh crore, a 6.56% increase. The budget emphasized defence modernization, self-reliance under Atmanirbhar Bharat, and veterans' welfare. The Ex-Servicemen Contributory Health Scheme (ECHS) received ₹12,100 crore, up 45.49% over FY 2025-26 budget estimates.
Mains angle
Q: Evaluate the priorities reflected in Budget 2026-27's record defence allocation and discuss its implications for Atmanirbhar Bharat in defence. Answer (50 words): Union Budget 2026-27 allocated a record ₹7.85 lakh crore to Defence, up 15.19%, constituting 14.67% of total spending. Capital acquisition rose nearly 24% to ₹1.85 lakh crore, enabling modernisation. Defence pensions reached ₹1.71 lakh crore, and the Ex-Servicemen Contributory Health Scheme jumped 45.49% to ₹12,100 crore.
6-axis classification
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Practice MCQ from this story
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Linked questionMedium
What is the capital acquisition allocation in the defence budget of Union Budget 2026-27?
Explanation · Correct answer CCapital acquisition in the defence budget was allocated ₹1.85 lakh crore, up 24%.
Frequently asked questions
What is India's total Defence budget allocation in Union Budget 2026-27 and how much did it increase?
The **Ministry of Defence received ₹7.85 lakh crore** in Union Budget 2026-27, the **highest-ever allocation**, representing a **15.19% increase** over FY 2025-26 Budget Estimates and accounting for **14.67% of the total Union Budget**.
How much was the capital acquisition budget for defence in Budget 2026-27?
In Budget 2026-27, **₹1.85 lakh crore was earmarked for Defence capital acquisition**, an increase of approximately **24%** over the previous year. Total **capital allocation to Defence Forces crossed ₹2.19 lakh crore**, up **21.84%** over FY 2025-26.
How much did the ECHS receive in Budget 2026-27 and what is the ECHS scheme?
**ECHS (Ex-Servicemen Contributory Health Scheme)** received **₹12,100 crore** in Budget 2026-27, a massive **45.49% increase** over FY 2025-26 budget estimates. ECHS provides medical care to retired defence personnel and their dependents through a network of polyclinics and empanelled hospitals.
What is India's Defence pension outlay in Union Budget 2026-27?
**Defence pensions stood at over ₹1.71 lakh crore** in Budget 2026-27, a **6.56% increase** over FY 2025-26. Defence pensions form a significant portion of the overall defence budget, reflecting India's large retired military personnel base and the government's commitment to veteran welfare.
What percentage of India's total Union Budget 2026-27 does the Defence allocation constitute?
The **Defence allocation of ₹7.85 lakh crore constitutes 14.67%** of the total Union Budget 2026-27 (Total expenditure: ₹53.5 lakh crore). This makes Defence the **largest single ministry allocation** in the union budget, reflecting India's strategic priorities in military modernization and self-reliance under Atmanirbhar Bharat.
