SF Prep Notes

Defence gets record ₹7.85 lakh crore in Budget 2026-27, 15.19% above last year's BE

The Ministry of Defence was allocated a record ₹7.85 lakh crore in the Union Budget 2026-27 on 1 February 2026, 15.19% higher than the 2025-26 Budget estimate.

Summary

The Ministry of Defence was allocated a record ₹7.85 lakh crore in the Union Budget 2026-27 on 1 February 2026, the first Budget after Operation Sindoor. The allocation is 2% of estimated GDP, 15.19% more than BE 2025-26 and 14.67% of Central Government expenditure — the highest among ministries. Capital expenditure gets ₹2.19 lakh crore against ₹1.80 lakh crore in BE 2025-26, with a 24% jump in the capital acquisition budget, and ₹1.39 lakh crore is earmarked for domestic industry, including private firms. The Ex-Servicemen Contributory Health Scheme (ECHS) gets ₹12,100 crore, 45.49% above BE 2025-26.

Key facts

Total
₹7.85 lakh crore (record)
Growth
15.19% over BE 2025-26
Share of GDP
2%
Share of Central expenditure
14.67% (highest among ministries)
Capital
₹2.19 lakh crore (₹1.80 lakh crore in BE 2025-26)
Domestic industry
₹1.39 lakh crore
ECHS
₹12,100 crore (+45.49%)

Practice MCQs 4 questions

Q1

How much was allocated to the Ministry of Defence in the Union Budget 2026-27?

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Correct answer: B — ₹7.85 lakh crore

The Ministry of Defence got a record ₹7.85 lakh crore.

Q2 Advanced

What is the defence capital outlay in the Union Budget 2026-27?

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Correct answer: D — ₹2.19 lakh crore

Capital expenditure got ₹2.19 lakh crore, up from ₹1.80 lakh crore in BE 2025-26; ₹1.39 lakh crore is for domestic industry.

Q3 Advanced

The defence allocation in the Union Budget 2026-27 is what share of the estimated GDP for 2026-27?

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Correct answer: C — 2%

The ₹7.85 lakh crore allocation is 2% of estimated GDP.

Q4 Advanced

Consider the following about the defence budget for 2026-27: 1. It accounts for 14.67% of Central Government expenditure, the highest among ministries. 2. The allocation for the Ex-Servicemen Contributory Health Scheme was cut compared with BE 2025-26. Which of the above is/are correct?

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Correct answer: A — 1 only

Only 1 is correct. ECHS got ₹12,100 crore, 45.49% higher than BE 2025-26.

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