Defence Ministry Achieves Landmark Capital Outlay Utilization
The Defence Ministry successfully utilized its entire capital budget of Rs 1.86 lakh crore for FY 2025-26, with contracts amounting to Rs 2.28 lakh crore. This achievement supports modernisation, infrastructural development, and is a significant milestone following Operation Sindoor, setting the stage for a Rs 2.19 lakh crore allocation for FY 2026-27.
- Country:
- India
The Defence Ministry announced on Wednesday the full utilization of its Rs 1.86 lakh crore capital outlay for the fiscal year 2025-26. Contracts worth Rs 2.28 lakh crore were signed, facilitating armed forces' modernization and infrastructure improvements in border regions following Operation Sindoor.
The initial capital expenditure appropriation was Rs 1.80 lakh crore, later increased by the Finance Ministry due to the Defence Ministry's expenditure efficiency during the first two quarters and heightened modernization needs. Acquisitions included aircraft, electronics, armaments, and shipbuilding, contributing to 99.62% budget utilization for the year.
With a historic step achieved, the Ministry gears towards a further budgetary increase, with Rs 2.19 lakh crore allocated for FY 2026-27, focusing on continued modernization of the Armed Forces. This milestone reflects effective financial management and strategic planning by the Ministry.
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