Defence Ministry fully utilises ₹1.86 lakh crore capital budget for FY 2025-26
The Ministry of Defence fully utilised its capital outlay of ₹1.86 lakh crore for the Defence Services in FY 2025-26 at Revised Estimates, it said on 1 April 2026.
Summary
The Ministry of Defence fully utilised its capital outlay of ₹1.86 lakh crore for the Defence Services in FY 2025-26 at the Revised Estimates stage, the ministry said on 1 April 2026, after achieving full utilisation in FY 2024-25 as well. The original capital appropriation of ₹1.80 lakh crore was raised by the Finance Ministry in view of the pace of spending in the first two quarters and the forces' modernisation needs after Operation Sindoor. Overall utilisation of the defence budget, including MoD (civil) and pensions, was 99.62% of the final allocation. Much of the spending went to aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, shipbuilding, aviation stores and projectiles.
Key facts
- Capital outlay used
- ₹1.86 lakh crore (RE), fully utilised
- Original appropriation
- ₹1.80 lakh crore
- Overall defence budget use
- 99.62%
- Largest head
- Aircraft and aero engines
- Previous year
- Full utilisation in FY 2024-25 too
Practice MCQs 2 questions
What capital outlay for the Defence Services did the Ministry of Defence fully utilise in FY 2025-26 (Revised Estimates)?
Show answer
Correct answer: B — ₹1.86 lakh crore
The ministry fully utilised ₹1.86 lakh crore at the RE stage; ₹1.80 lakh crore was the original appropriation.
What was the overall utilisation of the defence budget, including MoD (civil) and pensions, in FY 2025-26?
Show answer
Correct answer: A — 99.62%
The ministry said overall utilisation stood at 99.62% against the final allocation.