Budget 2025-26: Empowering defence through smart investments
In her eighth budget speech, Finance Minister Nirmala Sitharaman set aside ₹6.81 lakh crore for defense spending in the financial year 2025. This amount is slightly higher than the ₹6.21 lakh crore allocated in July last year, which was the first full budget of the Modi 3.0 government.
Out of the total defense budget, ₹4.88 lakh crore has been allocated for revenue expenses, covering salaries, pensions, daily operational costs, and maintenance of defense equipment and infrastructure. Of this, ₹1,60,795 crore is specifically set aside for pensions. Meanwhile, ₹1.92 lakh crore has been earmarked for capital expenses, which will be used for acquiring new equipment, modernization projects, and infrastructure development.
As part of the capital expenditure, ₹48,614 crore has been allocated for aircraft and aero engines, while ₹24,390 crore has been set aside for the naval fleet. Additionally, ₹63,099 crore has been earmarked for other defense equipment.
This year’s defense budget is nearly 9% higher than the initial estimate of ₹6.22 lakh crore for the 2024-25 financial year. It is also about 6% more than last year’s revised allocation of ₹6.41 lakh crore, according to budget documents.
At the beginning of 2025, Defence Minister Rajnath Singh announced that the year would focus on major reforms. In the coming months, changes are expected in areas like integrated theatre commands, advancements in cyber and AI warfare, faster and more efficient defense acquisitions, smoother technology transfers, and improved support for defense exports.
The Ministry of Defence (Civil) has been allocated ₹28,682 crore for the financial year 2025-26, an increase from ₹25,963 crore in the previous year. This funding is meant to strengthen administrative and support functions that play a crucial role in managing the defense sector efficiently. The budget will be used for policy planning, research, and other essential support systems that improve the overall functioning of the armed forces.
What is the Ministry of Defence (Civil)?
The Ministry of Defence (Civil) oversees various administrative and non-combat functions related to India's defense. It manages defense-related policy formulation, coordination between different defense organizations, and research and development activities.
The Ministry of Defence (MoD) in India has a complex structure with various organizations under its purview. Here are some of the key civil organizations:
1. Department of Defence (DoD)
Headed by the Defence Secretary, this department is responsible for the defence of India, including defence policy, preparation for defence, and related matters.
It oversees the Inter-Services Organizations, Defence Accounts Department, Canteen Stores Department (CSD), Coast Guard, National Cadet Corps, Border Roads Organisation,1 and various institutes like the Institute for Defence Studies and Analyses and the National Defence College.
2. Department of Defence Production (DDP)
This department is responsible for the indigenous production of defence equipment and related items.
It administers various Defence Public Sector Undertakings (DPSUs) like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), and Bharat Dynamics Limited (BDL).
3. Department of Defence Research and Development (DRDO)
DRDO is responsible for research and development in the defence sector.
It has a vast network of laboratories and establishments across the country, working on various technologies for the armed forces.
4. Department of Ex-Servicemen Welfare (DESW)
This department deals with the welfare and resettlement of ex-servicemen.
It oversees the Directorate General of Resettlement, the Kendriya Sainik Board, and the Ex-Servicemen Contributory Health Scheme.
5. Department of Military Affairs (DMA)
Headed by the Chief of Defence Staff, this department is responsible for promoting jointness in the armed forces.
It deals with matters related to the armed forces, including their organization, training, and operations.
Other Important Organizations:
Border Roads Organisation (BRO): Responsible for constructing and maintaining roads in border areas.
National Cadet Corps (NCC): A youth organization that provides military training to students.
Canteen Stores Department (CSD): Provides consumer goods to armed forces personnel at concessional rates.
Defence Accounts Department: Maintains the accounts of the defence services.
This is not an exhaustive list, but it covers many of the key civil organizations under the MoD in India. These organizations play a crucial role in supporting the armed forces and ensuring the defence and security of the nation.
(The author of this article is an award-winning Science Writer and a Defence, Aerospace & Political Analyst based in Bengaluru. He is also Director of ADD Engineering Components, India, Pvt. Ltd, a subsidiary of ADD Engineering GmbH, Germany. You can reach him at: girishlinganna@gmail.com)