Budget 2025 for Defence Sector
What's in store for the Defence Sector from the upcoming full Budget on February 1. Set to be a 'Pocket Booster' budget with focus on giving consumption a leg-up along with pushing capex Read More.., it is set to benefit a host of sectors. Keep a track on all the expectations, final announcements and in depth analysis of the Budget decision only on Financial Express. We offer you a detailed list of expectation and announcements for Defence Sector on its dedicated page Who Gets What. Navigate through all the declarations at a glance from the current and past Union Budgets on this page.
Budget 2025-26 Announcements for Defence Sector
Defence Sector
- Govt. allocated a budget of Rs 6,81,210 crore. This is an increase of 9.5 percent from the previous year’s Rs 6,21,940 crore
- As per the budgetary allocation document the capital outlay is Rs 1,92,387 crore, while the revenue expenditure is Rs 4,88,822 crore, which includes Rs 1,60,795 crore for pensions.
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Budget Announcements for Defence Sector in FY2025
Defence Sector
- Exempt Custom duty on 25 critical minerals.
- Allocation for the defence sector is highest at Rs 6.22 Lac Crore
- Rs 1.72 lac crore allocated for fighter aircrafts, ships, submarines, other critical defence capabilities
- Rs 1.05 lac crore earmarked for modernization of defence equipments
Budget Announcements for Defence Sector in FY2024
Defence Sector
- The defence services today got a hike of around 13 per cent in their budget for 2023-24 as Rs 5.94 lakh crore were allocated.
- The modernisation budget has also been hiked to Rs 1.62 lakh crore, used for the acquisition of weapon systems and equipment from Indian firms.
- The pension budget of the Forces has been increased to Rs 1.38 lakh crore.
Budget Announcements for Defence Sector in FY2023
Defence Sector
- Rs 5.25 lakh crore was allotted to Defence.
- It has been proclaimed that 25% of the defence R&D budget will be designated for industry, startups, and academia to partake in Defence R&D.
- There is a revealed strategy to encourage private industry involvement in designing and developing military platforms and equipment. This collaboration will take place with DRDO and other organizations using the Special Purpose Vehicle (SPV) model.
Budget Announcements for Defence Sector in FY2022
Defence Sector
- Proclaimed the allocation to the Ministry of Defence of the highest amount in 2021-22 totaling Rs 4,78,196 crore.
Budget Announcements for Defence Sector in FY2021
Defence Sector
- Ministry of Defence allocated the highest amount of Rs 4,71,378 crore in 2020-21.
Budget Announcements for Defence Sector in FY2020
Defence Sector
- Defence budget exceeded Rs 3,00,000 crore for the first time
- One Rank One Pension (OROP) fully underway, with Rs 35,000 crore disbursed
- Increase in Military pay service was pronounced to support implementation
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