Overview: In a decisive move to strengthen national security, the Union Budget 2026-27 has allocated an unprecedented ₹7.85 lakh crore to the defense sector, accounting for 14.67% of total government expenditure.
- Key Points:
- Fiscal Allocation: The overall defense budget witnessed a 15.19% hike over the previous year, now accounting for 2% of India’s estimated GDP.
- Capital Modernization: Capital expenditure has been sharply raised to ₹2.19 lakh crore, specifically to accelerate the acquisition of next-generation fighter aircraft, submarines, and smart weapons.
- Aatmanirbhar Push: A massive 75% of the capital acquisition budget (₹1.39 lakh crore) is strictly earmarked for procurement from domestic defense industries.
- Emergency Procurement Focus: Additional funds cater to the emergency procurement of arms and ammunition necessitated by recent border and maritime security imperatives.
- Defense Exam Relevance: Direct factual data for CDS/AFCAT economics questions and analytical fodder for UPSC GS-III (Defense Budgeting & Self-Reliance).
Source Link: Ministry of Defence Press Release
- Q2. In the Union Budget 2026-27, what percentage of the defense capital acquisition budget has been exclusively reserved for domestic industries?
- A) 50%
- B) 68%
- C) 75%
- D) 85%
