Union Budget 2025: Government hikes defence expenditure to Rs 6.81 lakh crore for 2025-26

The government on Saturday (February 1) allocated Rs 6,81,210 crore for the defence budget for 2025-26, up from last year's outlay of Rs 6,21,940 crore.

The overall capital outlay has been estimated at Rs 1,92,387 crore.

The revenue expenditure has been estimated at Rs 4,88,822 crore, which includes Rs 1,60,795 crore for pensions.

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Funds for aircraft and aero engines 

As per the budget announcement, Rs 48,614 crore has been set aside for aircraft and aero engines while Rs 24,390 crore has been allocated for the naval fleet.

An amount of Rs 63,099 crore has been set aside for other equipment, the Finance Minister said.

In 2024-25, the government allocated Rs 6,21,940 crore for the defence budget. The capital outlay was pegged at Rs 1,72,000 crore.

The Finance Minister also announced various changes related to the micro, small, and medium enterprises (MSMEs) sector.

"With quality products, MSMEs are responsible for 45 per cent of our exports," said Sitharaman. Also Read