Bhubaneswar: Union Finance Minister Nirmala Sitharaman has allocated Rs 6,81,210.27 crore towards the defence sector in the Union Budget-2025.

This year’s allocation is 9.53 per cent higher than last year’s budgetary estimation of Rs 6.21 lakh crore. The allocations towards the defence sector stands at 13.45 per cent of the Union Budget, which is highest among the Ministries.

Out of this, Rs 1,80,000 crore i.e. 26.43 per cent of total allocation will be spent on Capital Outlay on Defence Services. On Revenue Head, allocation for the Armed Forces stands at Rs 3,11,732.30 crore which is 45.76 per cent of total allocation.

Defence Pension receives a share of Rs 1,60,795 crore i.e. 23.60 per cent and balance Rs 28,682.97 crore i.e. 4.21 per cent is for civil organisations under MoD.

The Ministry has taken a decision to observe 2025-26 as ‘Year of Reforms’ which will further strengthen the resolve of the government for modernisation of Armed Forces and is aimed for simplification in the Defence Procurement Procedure to ensure optimum utilisation of the allocation.

Defence Minister Rajnath Singh congratulated the Finance Minister for presenting a budget towards fulfilling the Prime Minister’s resolve of Viksit Bharat. “This budget will promote the development of youth, poor, farmers, women and all other sections of society. Recognising the contribution of the middle class, the budget has brought an unprecedented gift,” he said.