SF Prep Notes

Budget 2025-26: record ₹6.81 lakh crore for the Ministry of Defence, up 9.53%

On 1 February 2025, in New Delhi, the Union Budget 2025-26 allocated a record ₹6,81,210.27 crore to the Ministry of Defence, 9.53% more than the 2024-25 Budget Estimate.

Summary

On 1 February 2025, in New Delhi, the Union Budget 2025-26 provided ₹6,81,210.27 crore to the Ministry of Defence, 9.53% more than the 2024-25 Budget Estimate and 13.45% of the Union Budget, the highest among ministries. Of this, ₹1,80,000 crore (26.43%) is for capital outlay on defence services, with ₹1.12 lakh crore earmarked for procurement from domestic industry. Defence pensions get ₹1,60,795 crore (23.60%). The Indian Coast Guard's capital budget rose 43%, and the Border Roads Organisation got ₹7,146 crore under the capital head. Raksha Mantri Rajnath Singh called the Budget a step towards Viksit Bharat by 2047.

Key facts

Date / place
1 Feb 2025, New Delhi
MoD allocation
₹6,81,210.27 crore; +9.53% over BE 2024-25
Share of Union Budget
13.45%, highest among ministries
Capital outlay
₹1.80 lakh crore (26.43%); ₹1.12 lakh crore for domestic procurement
Defence pensions
₹1,60,795 crore (23.60%)
ICG / BRO
ICG capital budget +43%; BRO ₹7,146 crore capital

Practice MCQs 2 questions

Q1 Advanced

The Union Budget 2025-26 allocation for the Ministry of Defence was how much higher than the 2024-25 Budget Estimate?

Show answer

Correct answer: C — 9.53%

PIB (1 Feb 2025): the allocation of ₹6,81,210.27 crore is 9.53% more than the Budgetary Estimate of 2024-25. 13.45% is its share of the Union Budget.

Q2 Advanced

How much did the Union Budget 2025-26 allocate for capital outlay on defence services?

Show answer

Correct answer: B — ₹1.80 lakh crore

PIB (1 Feb 2025): ₹1.80 lakh crore (₹1,80,000 crore), i.e. 26.43% of the total allocation, is for capital outlay on defence services; ₹1.12 lakh crore of the capital budget is earmarked for domestic procurement.

← All current affairs