By Admin 
Within just five months of Operation Sindoor, the Defense Ministry has spent more than 50 percent of the defense budget on weapons and other military equipment. This year (2025-26) the capital expenditure from the defense budget is around Rs 1.80 lakh crore. According to the Defense Ministry, till the month of September, about 93 thousand crores (92,211,768.40) have been used.
According to the Defense Ministry, utilization of more than 50 percent capital outlay will ensure timely supply of critical equipment like aircraft, warships, submarines, weapon systems etc. required for the modernization of the armed forces in the coming year.
Impact on economic growth and job creation
Most of the expenditure has been on planes and aero engines. After this, expenditure has been made on army, electronic warfare equipment, armaments and missiles. In the last financial year, the Defense Ministry had utilized 100 percent of the capital expenditure of Rs 1.60 lakh crore.
Capital expenditure is important for the defense sector, as it provides funds for acquisition of new assets, research and development, and infrastructure development in border areas, which are essential for the national security of the country. Furthermore, capital expenditure has a multiplier effect on economic growth and employment creation.
Army outlay increased by 60 percent in 5 years
With this pace of expenditure and large projects involved in advanced stages of approval, the Ministry of Defense is committed to fully utilize the allocation under the capital head by the end of the current financial year. Along with this, the Ministry is working on the budgetary estimates for discussion for the Revised Estimates.
It is noteworthy that in the current financial year, Rs 1.80 lakh crore was allocated to the Defense Ministry under the capital item in the budget estimate stage by the Finance Ministry. This allocation is 12.66 percent more than the actual expenditure for the financial year 2024-25. There has been an increasing trend in the allocation under capital outlay for all three services of the army in the last several years. It has increased by about 60 percent during the last five years.
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