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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Us Senate Passes One Big Beautiful Bill: The US Senate on Tuesday passed the major expenditure bill of President Donald Trump. This voting lasted more than 18 hours, which was called “Vote-e-Rama”. During this time the senators introduced several amendments to this bill of about 1,000 pages and debated them. On being equal to the vote, Vice President JD Vance passed a decisive vote and passed the bill.

Tax cuts and heavy expenditure on army
Trump has named this bill “One Big Beautiful Bill”. Its purpose is to carry forward tax cuts (tax exemption) of his first term at a cost of 4.5 trillion dollars. Apart from this, there is a provision to increase the expenses of the army, provide funds for the process of deportation and border security of the people on a large scale.

America’s national debt will increase
According to the news agency AFP, this law may increase the US national debt in the next ten years more than $ 3.3 trillion. The passing of this bill in the Senate is being considered an important step for the Trump administration. The administration wants this bill to be made by Friday, so that it can be implemented before Independence Day.

However, now the bill will go to the House of Representatives, the lower house of the US Parliament, where some Republican MPs have also expressed concern over it. There is a proposal in the bill, under which about $ 1 trillion health care subsidy will be abolished, which can affect millions of poor Americans.

Health services of poor will be affected
According to the AFP, independent experts say that due to the proposed cuts made in the Medicade and Affordable Care Act, about 1.2 crore people can lose health insurance by 2034.

Musk threatened
Tesla’s owner Alan Musk had threatened that if Trump’s ‘Big Beautiful Bill’ passes, he would launch a new party. Musk said, if Trump’s expenditure bill is passed then the ‘US Party’ will be launched immediately. Our country needs an alternative to Democrat-Republican Unipartity. After his statement, there are speculations that it is going to start the second round of debate between them?

Shop will be closed and returned to South Africa: Trump

Donald Trump wrote on Truth Social, ‘Alan Musk knew long before I supported me for the presidency that I am strongly against EV Mandate. It is ridiculous and it was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to buy it.

Trump further wrote, ‘Alan can get more subsidy than any human being in the history so far, but without subsidy he might have to close his shop and return to South Africa. No rocket launch, satellite or electric cars will be produced, and we will save a lot of money.