In the Union Budget 2026-27, Defence Services have received the highest allocation among all ministries, amounting to ₹7.85 lakh crore. The Ministry of Defence said the allocation stands at around 2 per cent of the estimated GDP for the next financial year and reflects a significant increase of 15.19 per cent over the Budget Estimates of 2025-26. It also noted that the defence budget accounts for 14.67 per cent of the total Central Government expenditure.

Of the total allocation to the Ministry of Defence, 27.95 per cent has been earmarked for capital expenditure, 20.17 per cent for revenue expenditure on sustenance and operational preparedness, and 26.40 per cent for revenue expenditure on pay and allowances. A further 21.84 per cent has been allocated for defence pensions, while 3.64 per cent is meant for civil organisations.

Defence Minister Rajnath Singh thanked Prime Minister Narendra Modi for the enhanced allocation, calling it a crucial step towards strengthening national security. In a social media post, Mr Singh said the budget reinforces the balance between security, development, and self-reliance, and serves the best interests of the nation.

He added that the allocation, coming after the historic success of Operation Sindoor, reflects the government’s continued resolve to bolster the country’s security architecture and further enhance military capabilities.