Keeping up the momentum of modernization and operational readiness, Rs 6,81,210 Crores is allocated to defence for next fiscal. It is a hike of 9.53 per cent over current year's allocation of Rs 6,21, 940 Crore. The allocation for the defence budget is estimated at 1.91 per cent of the projected GDP in 2025-26.
The government has assured that funds will be not a be constraint and if need be additional finance will be available to ensure to meet any challenge in the back drop of fast evolving regional security scenario, sources said here on Saturday. Defence Minister Rajnath Singh congratulated Finance Minister Sitharaman for presenting a budget towards fulfilling the Prime Minister's resolve of Viksit Bharat.
"This budget will promote the development of youth, poor, farmers, women and all other sections of society. Recognising the contribution of the middle class, the budget has brought an unprecedented gift," he said.
As regards procuring state of the art weaponry including aircraft, warships and systems, a total of Rs 1,80,000 Crore crore has been allocated for capital outlay for 2025-26. The capital outlay in 2024-25 was Rs 1.72 Lakh Crore. Moreover, Rs 1.12 lakh crore is earmarked for 2025-26 for procurement from domestic industries. Rs 1,11,544.83 Crore i.e. 75% of modernisation budget has been earmarked for procurement through domestic sources and 25% of domestic share i.e. Rs 27,886.21 Crore has been provisioned for procurement through do 1,60,795 Crore i.e. 23.60% and balance Rs 28,682.97 Crore i.e. 4.21% is for civil organisations under defence ministry.
Indian Coast Guard (ICG) has been allotted Rs 9,676.70 Crore under Capital and Revenue Head which is 26.50% more than the allocation for FY 2024-25 at Budget Estimate(BE)stage. This increase is primarily in line with the focsus of the Government on capability development of ICG and equipping them with modern equipment. ICG not only strengthens coastal security, but also provides assistance to neighboring countries and commercial ships during emergency through faster response. A jump of 43% in Capital Budget i.e. from Rs 3,500 Crore for FY 2024-25 to Rs 5,000 Crore for FY 2025-26 will provide adequate financial space for acquisition of Advanced Light Helicopters (ALH), Dornier Aircraft, Fast Patrol Vessels (FPVs), Training Ships and Interceptor Boats. On revenue head, the allocation has been increased from Rs 4,151.8 crore for FY 2024-25 to Rs 4,676.70 Crore for FY 2025-26 which shows an increase of 12.64%. The increase will be utilised to fund the expenditure to be incurred on additional deployments of manpower and resources in addition to addressing the inflation.