Full utilization of defense budget under capital account in FY 2025-26

A press release from the Ministry of Finance said that the initial fiscal capital expenditure allocation is Rs 180 crore, which is increased by the Ministry of Finance based on the pace of expenditure of the Ministry of Defense in the first two quarters and the increase in force requirements for modernization and other purposes after Operation Sindoor.A large part of the expenditure is spent on the purchase of aircraft and aerospace engines, followed by land systems, electronic warfare equipment, armaments, shipbuilding, aviation supplies and projectiles. It also includes proposals to procure multi-role fighter jets, medium-altitude long-endurance remotely piloted aircraft for the Indian Air Force, mine countermeasures ships for the Navy, quick-reaction surface-to-air missile systems and Nag missile system Mark-2 for the Army.In the financial year 2025-26, the Ministry of Defense approved 109 proposals worth Rs 681 crore, while 56 proposals worth Rs 176 crore were approved in the financial year 2024-25. Additionally, the ministry signed capital procurement contracts worth Rs 228 crore in total 503 proposals during the financial year 2025-26.The budget has been increased by 22% with Rs 219 crore allocated for capital projects in the financial year 2026-27.