The government announced a defence budget of ₹6,81,210 crore for 2025-26, an increase of 9.5% from the previous year’s ₹6,21,940 crore. The capital outlay is ₹1,92,387 crore, while the revenue expenditure is ₹4,88,822 crore, which includes ₹1,60,795 crore for pensions.In terms of capital expenditure, ₹48,614 crore has been allocated for aircraft and aero engines, and ₹24,390 crore for the naval fleet. Additionally, ₹63,099 crore has been earmarked for other equipment.In 2024-25, the government allocated ₹6,21,940 crore for the defence budget, with a capital outlay of ₹1,72,000 crore.
At the start of 2025, Defence Minister Rajnath Singh had declared that 2025 will be a year of reforms. In the coming months, we are likely to see reforms aimed at integrated theatre commands, new domains such as cyber and AI, simpler and time-bound acquisitions, easier tech transfer and export facilitation.Defence Budgets since 20202020
Total: ₹3.37 lakh crore
Capital outlay: 1.18 lakh crore2021
Total: ₹4.78 lakh crore
Capital outlay: 1.28 lakh crore2022
Total: ₹5.25 lakh crore
Capital outlay: ₹1.52 lakh crore2023
Total: ₹5.9 lakh crore
Capital outlay: 1.63 lakh crore
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