In the Union Budget 2026-27, Defence Services have received the highest allocation among the Ministries, amounting to 7.85 lakh crore rupees. Ministry of Defence said that the allocation stands at 2 per cent of the estimated GDP for the next Financial Year and shows a significant increase of 15.19 percent over the Budgetary Estimates (BE) of 2025-26. It noted that the total Defence budget is 14.67 percent of the Central Government expenditure. Out of the total allocation made to the Ministry , a share of 27.95 percent is for capital expenditure, 20.17 percent for revenue expenditure on sustenance and operational preparedness, 26.40 percent for revenue expenditure on pay and allowances, 21.84 percent for Defence Pensions and 3.64 percent for civil organizations. Defence Minister Rajnath Singh thanked Prime Minister Modi for allocating 7.85 lakh crore to the defence sector. In a social media post, Mr Singh said that the budget strengthens the security-development-self-reliance balance, and it is in the best interest of the nation. He asserted that the budget, which comes after the historic success of Operation Sindoor, further strengthens the Government’s resolve to bolster the security system of the country and enhance military capabilities.