The Ministry of Defence received a record allocation of ₹7.85 lakh crore in Budget 2026-27 — an increase of 15.19% over FY26 Budget Estimates. Defence accounts for 14.67% of the total Union Budget. Breakup: capital expenditure 27.95% (₹2,19,306 crore, +17.6% over RE FY26), revenue expenditure on operations 20.17%, pay and allowances 26.40%, defence pensions 21.84%, civil organisations 3.64%. The Ex-Servicemen Contributory Health Scheme (ECHS) received ₹12,100 crore (+45.49%). The budget emphasises indigenous defence manufacturing under 'Atmanirbhar Bharat' with increased allocation for defence R&D and procurement from Indian vendors, building on the momentum from Operation Sindoor.
Budget 2026: Defence Gets Record ₹7.85 Lakh Crore — 15.19% Increase
AQuick answer
Defence budget record ₹7.85 lakh crore (+15.19%); capital outlay ₹2.19 lakh crore (+17.6%); ECHS +45.49%; focus on indigenous manufacturing.
Key facts
- Ministry of Defence received record ₹7.85 lakh crore in Budget 2026-27 — 15.19% increase over FY26; defence accounts for 14.67% of total Union Budget.
- Capital expenditure: ₹2,19,306 crore (+17.6% over RE FY26) at 27.95% of defence budget.
- Ex-Servicemen Contributory Health Scheme (ECHS) received ₹12,100 crore (+45.49%).
- Budget emphasises indigenous defence manufacturing under Atmanirbhar Bharat.
- Breakup: revenue expenditure 20.17%, pay and allowances 26.40%, defence pensions 21.84%, civil organisations 3.64%.
PYQPrelims/PYQ angle
- RAS 2024 Indigenization in defence production — Both examine Atmanirbhar Bharat push in indigenous defence capability
Mains angle
Q: Assess Budget 2026's record defence allocation and its implications for indigenous manufacturing under Atmanirbhar Bharat.
Answer (50 words):
Budget 2026-27 allocated Defence Ministry record 7.85 lakh crore rupees — 15.19 per cent increase, 14.67 per cent of Union Budget. Capital expenditure rose 17.6 per cent to 2,19,306 crore rupees. ECHS jumped 45.49 per cent to 12,100 crore rupees. Indigenous procurement, research under Atmanirbhar Bharat build Operation Sindoor momentum decisively.
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Linked questionMedium
By what percentage did defence spending increase in Budget 2026?
Explanation · Correct answer C
Defence spending increased by 15.19% to ₹7.85 lakh crore in Budget 2026.
Source: DD News
Frequently asked questions
What is the defence budget allocation in Union Budget 2026-27?
The Ministry of Defence received a record **₹7.85 lakh crore** in Budget 2026-27, an increase of **15.19%** over FY26. Defence accounts for **14.67%** of the total Union Budget. Capital expenditure was **₹2,19,306 crore** (+17.6%), with pay and allowances at 26.40% and defence pensions at 21.84%.
What is the ECHS allocation in Defence Budget 2026-27?
The **Ex-Servicemen Contributory Health Scheme (ECHS)** received **₹12,100 crore** in Budget 2026-27, a surge of **45.49%** over FY26 budget estimates. ECHS provides healthcare to retired defence personnel and their families. The total defence allocation was a record **₹7.85 lakh crore**.
How much is the defence capital expenditure in Budget 2026-27?
Defence capital expenditure in Budget 2026-27 was **₹2,19,306 crore**, comprising **27.95%** of the total defence budget. This represents a **17.6% increase** over RE FY26. Capital acquisition (procurement) accounted for the bulk of this, focused on indigenous procurement under **Atmanirbhar Bharat**.
What percentage of Union Budget 2026-27 goes to defence?
Defence accounts for **14.67%** of the total Union Budget 2026-27, with a record **₹7.85 lakh crore** allocation, a **15.19%** increase over FY26. The breakdown: capital expenditure 27.95%, pay and allowances 26.40%, defence pensions 21.84%, revenue operations 20.17%, and civil organisations 3.64%.
What is the emphasis on indigenous defence manufacturing in Budget 2026-27?
Budget 2026-27 emphasizes **indigenous defence manufacturing** under Atmanirbhar Bharat through increased allocation for **defence R&D** and procurement from **Indian vendors**. The record **₹7.85 lakh crore** defence budget, building on the momentum from Operation Sindoor, includes **₹2,19,306 crore** capital expenditure (+17.6%).
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