For this article:

2 Feb 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

Budget 2026: Defence Budget Increased by 15% After Operation Sindoor

Defence budget increased by 15% in first budget after Operation Sindoor.

Budget 2026: Defence Budget Increased by 15% After Operation Sindoor

Photo by Sufyan

In the first Budget after Operation Sindoor, the defence budget saw a 15% hike. Capital outlay increased by 22%.

Key Facts

1.

Defence budget hike: 15%

2.

Capital outlay increase: 22%

UPSC Exam Angles

1.

GS Paper 3: Economy - Government Budgeting

2.

GS Paper 3: Security - Defence Expenditure and Policy

3.

Connection to India's economic growth and strategic interests

4.

Potential for statement-based questions on defence budget components and policies

Visual Insights

Budget 2026: Key Defence Statistics

Key statistics from the Budget 2026 related to the defence sector, showing the increase in the defence budget and capital outlay.

Defence Budget Increase
15%

Reflects increased government focus on national security and defence preparedness after Operation Sindoor. Important for understanding budgetary priorities.

Capital Outlay Increase
22%

Indicates a significant push towards modernization of defence equipment and infrastructure. Crucial for assessing long-term defence capabilities.

More Information

Background

The defence budget in India has evolved significantly since independence. Initially, a smaller portion of the national budget was allocated to defence, focusing on nation-building and economic development. Over time, geopolitical factors, regional conflicts, and evolving security challenges have led to increased allocations. Key concepts include Capital Outlay, which refers to expenditure on assets like equipment and infrastructure, and Revenue Expenditure, which covers day-to-day operational costs. Several committees and commissions have influenced defence spending policies. The Kargil Review Committee, for example, recommended significant improvements in defence preparedness and intelligence gathering, leading to increased budgetary allocations. The concept of Defence Procurement Procedure (DPP) was introduced to streamline the acquisition process and promote indigenization. Amendments to the DPP have aimed to reduce delays and enhance transparency in defence deals. The legal and constitutional framework for defence expenditure is primarily governed by the Constitution of India, which assigns the responsibility of national defence to the Union Government. The Parliament exercises control over defence spending through budgetary approvals and oversight mechanisms. Various audit bodies, such as the Comptroller and Auditor General of India (CAG), scrutinize defence expenditures to ensure accountability and prevent irregularities.

Latest Developments

Recent years have seen a greater emphasis on indigenization and self-reliance in defence production under initiatives like 'Make in India'. This has led to increased investment in domestic defence industries and the development of indigenous technologies. The government has also been focusing on modernizing the armed forces with advanced weaponry and equipment. This includes procuring fighter jets, missile systems, and surveillance technologies. There are ongoing debates regarding the optimal level of defence spending and the balance between capital and revenue expenditure. Some experts argue for a higher allocation to capital expenditure to enhance the military's modernization efforts. Others emphasize the need for efficient resource utilization and better coordination between the armed forces. Institutions like NITI Aayog play a role in advising the government on defence-related economic policies. The future outlook for the defence budget is likely to be shaped by evolving geopolitical dynamics and technological advancements. The government is expected to continue prioritizing defence modernization and indigenization. Emerging technologies like artificial intelligence, cyber warfare, and space-based assets are likely to receive increased attention and investment. The long-term goal is to create a strong and self-reliant defence industry that can meet the country's security needs.

Frequently Asked Questions

1. What are the key facts about the defence budget increase after Operation Sindoor that are important for the UPSC Prelims exam?

The key facts to remember are that the defence budget increased by 15%, and the capital outlay saw a 22% increase. These figures are important for factual recall questions in the exam.

Exam Tip

Remember the percentages! Focus on the difference between the overall budget increase and the capital outlay increase.

2. What is 'Capital Outlay' in the context of the defence budget, and why is it important?

Capital outlay refers to the expenditure on acquiring assets like equipment, machinery, land, buildings, etc. It is important because it reflects investment in modernizing and strengthening the defence capabilities of the country.

3. Why is the increase in the defence budget newsworthy?

The defence budget increase is newsworthy because it is the first budget after Operation Sindoor and represents a significant 15% hike, signaling a shift in priorities or increased security concerns. The 22% increase in capital outlay further emphasizes modernization efforts.

4. How might the increased defence budget impact common citizens?

An increased defence budget could mean more government spending on security, potentially leading to trade-offs with other sectors like education or healthcare. However, it could also lead to increased security and stability, which benefits all citizens.

5. What is the historical background of defence budget allocations in India?

Initially, a smaller portion of the national budget was allocated to defence, focusing on nation-building and economic development. Over time, geopolitical factors, regional conflicts, and evolving security challenges have led to increased allocations.

6. In the context of the defence budget, what are the recent developments related to 'Make in India'?

Recent years have seen a greater emphasis on indigenization and self-reliance in defence production under initiatives like 'Make in India'. This has led to increased investment in domestic defence industries and the development of indigenous technologies.

7. What are the pros and cons of increasing the defence budget by 15% after Operation Sindoor?

Pros include enhanced military preparedness, modernization of equipment, and a boost to domestic defence industries. Cons could involve reduced allocation to other essential sectors and potential concerns from neighboring countries.

8. What reforms are needed in the defence procurement process to ensure efficient utilization of the increased budget?

While specific reforms are not mentioned in the provided text, generally, reforms could focus on streamlining the procurement process, promoting transparency, and encouraging indigenous production to reduce reliance on imports.

9. What are the important numbers to remember regarding the defence budget increase?

The key numbers to remember are 15% - the overall defence budget hike, and 22% - the increase in capital outlay.

Exam Tip

Focus on these percentages for prelims factual questions.

10. How does the recent increase in the defence budget align with the government's focus on national security and self-reliance?

The increased defence budget, particularly the rise in capital outlay, aligns with the government's focus on modernizing the armed forces and promoting self-reliance through initiatives like 'Make in India'. This indicates a commitment to strengthening national security by investing in domestic defence production and advanced weaponry.

Practice Questions (MCQs)

1. Consider the following statements regarding the components of India's Defence Budget: 1. Capital outlay primarily focuses on the procurement of new equipment and infrastructure development. 2. Revenue expenditure mainly covers the day-to-day operational costs, salaries, and maintenance. 3. The recent budget increased both capital outlay and revenue expenditure, with a higher percentage increase in capital outlay. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All three statements are correct. Capital outlay includes expenditure on acquiring assets like equipment and infrastructure. Revenue expenditure covers operational costs, salaries, and maintenance. The news mentions a 15% increase in the defence budget and a 22% increase in capital outlay, implying both increased, with capital outlay increasing at a higher rate. Therefore, all statements are accurate.

2. With reference to India's Defence Procurement Procedure (DPP), consider the following statements: 1. The DPP aims to promote indigenization and self-reliance in defence production. 2. The DPP outlines the procedures for acquiring defence equipment and technologies. 3. The DPP is a static document and is not subject to periodic revisions based on evolving needs. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statements 1 and 2 are correct. The DPP indeed aims to promote indigenization and outlines procedures for defence equipment acquisition. Statement 3 is incorrect because the DPP is periodically revised to adapt to changing needs and technological advancements. The DPP is not a static document.

3. Which of the following statements accurately reflects the role of the Comptroller and Auditor General of India (CAG) concerning defence expenditure?

  • A.The CAG formulates the defence budget in consultation with the Ministry of Defence.
  • B.The CAG audits defence expenditures to ensure accountability and prevent irregularities.
  • C.The CAG directly approves all defence procurement contracts.
  • D.The CAG is only responsible for auditing the revenue expenditure of the defence ministry.
Show Answer

Answer: B

Option B is correct. The CAG audits all government expenditures, including defence, to ensure accountability and prevent irregularities. The CAG does not formulate the budget (A), approve contracts (C), or only audit revenue expenditure (D).

Source Articles

First budget after Op Sindoor: India hikes defence budget by 15% to Rs 7.85 lakh crore, capital outlay by 22%

The Indian Express·2 Feb 2026

Today News Headlines for School Assembly, February 2, 2026: Union Budget 2026 focus infrastructure, security reforms; Alcaraz makes tennis history, Kerala cuts 25% syllabus

The Indian Express·2 Feb 2026

Why J&K traders are upset with Budget 2026: ‘Allocation doesn’t match losses after Pahalgam attack’

The Indian Express·2 Feb 2026

President Droupadi Murmu highlights India–EU FTA; says India a ‘bridge’ in shifting world order, hails ‘Operation Sindoor’ | India News - The Indian Express

The Indian Express·2 Feb 2026

GKSolverToday's News