Defense Budget 2026-27: The eyes of the entire country are currently fixed on the Union Budget to be presented on 1 February. However, considering the current global situation, the defense sector has emerged as a big challenge for India, which is moving towards becoming the world’s third largest economy. Today almost every country is increasing its defense budget drastically.

US President Donald Trump has announced a defense budget of 1.5 trillion dollars (about Rs 13.48 lakh crore) for the year 2027, which is more than the total GDP of many countries. This represents an increase of approximately $500 billion in America’s defense spending. This increase is more than the combined defense budget of India, China, Japan, South Korea and Australia (estimated at $473 billion in 2026).

Defense budget of major countries in 2025-26

During the financial year 2025-26, China made a big increase in its defense budget to $ 245 billion. Whereas India’s defense budget was 81 billion dollars (about Rs 6.81 lakh crore). During the same period, Japan’s defense budget was $58 billion, Australia’s was $44 billion and South Korea’s was $45 billion.

In view of global geopolitical tensions and China’s increasing military expenditure, India’s defense budget is also expected to increase in the upcoming budget.

Defense budget increased two and a half times in last 10 years

In the last decade, India’s defense budget has registered an increase of about two and a half times. The government had allocated a defense budget of Rs 6.6 lakh crore for the financial year 2025-26, of which Rs 1.8 lakh crore was earmarked for the modernization of the army. This was about 1.9 percent of the country’s GDP, which was about 9.5 percent more than last year.

financial year	lakh crore (in rupees)	What is the % increase in GDP?
2025-26	6.81	1.9
2024-25	6.21	1.89
2023-24	5.93	1.97
2022-23	5.25	2.21
2021-22	4.78	2.66
2020-21	4.71	2.88
2019-20	4.31	2.52
2018-19	4.04	2.42
2017-18	3.59	2.51

If we look at the figures of past years:

• 2024-25: Rs 6.21 lakh crore
• 2023-24: Rs 5.93 lakh crore
• 2022-23: Rs 5.25 lakh crore
• 2021-22: Rs 4.78 lakh crore
• 2020-21: Rs 4.71 lakh crore
• 2019-20: Rs 4.31 lakh crore
• 2018-19: Rs 4.04 lakh crore
• 2017-18: Rs 3.59 lakh crore

Expert opinion: Emphasis on defense self-reliance is necessary

Defense expert and retired Wing Commander Prafulla Bakshi says that while discussing the defense budget, the security of the country is paramount. He said that India is currently surrounded by challenges from all sides, which include the China-Pakistan alliance, the situation in Bangladesh and the increasing tension in the South China Sea.

He further said that the situation in areas like America, Iran and Venezuela is also becoming serious, due to which India’s defense needs will increase further. In such a situation, self-reliance in defense production under ‘Make in India’ is very important.

According to Bakshi, for modern war, indigenous production of sophisticated weapons like tanks, fighter aircraft, engines, missiles and ammunition is necessary. Along with this, there is a need to increase expenditure on defense research and development (R&D). He suggested that India should seriously consider increasing defense spending to 3.5 to 5 percent of GDP, as many developed countries are doing.

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Budget 2026: The Union Finance Minister presents the Union Budget in Parliament every year, in which a detailed outline of the government’s income and expenditure for the upcoming financial year is presented. In simple words, the budget tells how the government will earn money in the next financial year and on which items it will be spent. Along with this, the structure of taxes is decided in the budget, due to which the general public, industry and business world are directly affected.

Before preparing this budget, the Finance Ministry consults with other ministries, industry organizations, representatives of the corporate world and various stakeholders. Constitutionally, the provision of budget is made under Article 112, which is called Annual Financial Statement. It contains complete details of the estimated income and expenditure of the Central Government for a financial year, along with how much budget has been allocated to each ministry, how much has been spent so far and how much additional amount is required for the remaining period.

A lot of expectations from the budget this year?

In the budget to be presented on February 1 for the financial year 2026-27, the government can take many important steps to boost the economy. In this, special emphasis is likely to be given on capital expenditure (capex) with the aim of accelerating infrastructure development. Apart from this, measures related to employment generation, promotion of manufacturing sector, relief for MSMEs, green energy and strengthening the digital economy can also be included in the major priorities of the budget. Let us today tell you about some interesting questions related to the budget and their answers, knowing about which you will be surprised.

Where did the word ‘budget’ come from?

The word ‘budget’ comes from the French word ‘boujet’, which means a small leather bag or briefcase, which was originally used to keep financial documents. This is the reason why earlier one used to bring a leather bag to present the budget.

Why is the budget presented every time on 1st February?

The Union Budget is presented every year on 1 February so that there is enough time to implement proposed laws or changes before the new financial year starts from 1 April. Another reason for this is to give enough time to the government to prepare and complete financial plans and economic strategies for the entire year.

What is the Halwa ceremony before the Budget?

A tradition that has been followed for a long time before the presentation of the Union Budget is the ‘Halwa Ceremony’. As part of this ritual, the Finance Minister usually makes halwa in a big pan, which is then distributed among all the employees of the Finance Ministry. This is also a major signal of the start of budget preparations, after which, for some time before the budget presentation, more than 100 employees and officers remain in the North Block, where the budget printing work is carried out. During this period, these employees remain completely cut off from the outside world.

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Parliamentary Affairs Minister Kiren Rijiju said on Friday (January 9, 2026) that the budget session of Parliament will start from January 28, 2026 and will continue till April 2, 2026. He posted on X and said, ‘On the recommendation of the Government of India, Honorable President Draupadi Murmu has given approval to convene both the Houses of Parliament for the budget session of 2026. This session will start from 28 January 2026 and will continue till 2 April 2026. The first phase will end on 13 February 2026. The second phase of Parliament will run from March 9, 2026 to April 2.

There will be no meeting of both the houses on 29 January. Parliament will meet on January 30, the day the Economic Survey is likely to be presented. After this, there will be no meeting of Lok Sabha and Rajya Sabha on 31 January.

When will the budget be presented?

The Union Budget may be presented on Sunday, February 1. After discussing the motion of thanks on the President’s address and the Union Budget, Parliament will adjourn on February 13 for a recess of about a month. Parliament will meet again on March 9 and the session will end on April 2.

On the recommendation of the Govt of India, Hon’ble President of India, Smt. Droupadi Murmu ji has approved the summoning of both the Houses of Parliament for the Budget Session 2026.
The Session will commence on 28 January 2026 and continue till 2 April 2026.

The first phase… pic.twitter.com/FxGYCL7keq

— Kiren Rijiju (@KirenRijiju) January 9, 2026

Nirmala Sitharaman will present the ninth consecutive budget

Officials said that normally the Parliament session is adjourned on Friday, but keeping in mind Good Friday and the subsequent weekend on April 3, the session will end on April 2. Finance Minister Nirmala Sitharaman will present the ninth consecutive budget this time. The current government has retained the date of February 1 in the budget program from 2017 onwards.

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Kisan Credit Card: While presenting Budget 2025 on February 1, Finance Minister Nirmala Sitharaman had talked about increasing the short term loan limit for Kisan Credit Card (KCC) holders from Rs 3 lakh to Rs 5 lakh, which will benefit 7.75 crore farmers. This order of the government is likely to be implemented from the next financial year.

Rebate will also be given in interest

According to the report of Financial Express, officials related to this have said that the Cabinet has approved the Interest Subvention Scheme for Agricultural Credit in order to meet the working capital needs of the farmers. Under this, farmers taking loans up to Rs 3 lakh will get interest rebate of up to 1.5 percent.

The objective behind this is to ensure adequate credit flow in the agriculture sector. “The appraisal report for the interest subvention scheme is being considered by the Expenditure Finance Committee. We are hopeful that the increase in short-term credit for KCC holders will be implemented from the next financial year,” an official told FE.

Crores of farmers will benefit

However, sources said that at present the average short term credit flow for each KCC holder is around Rs 1.6 lakh. That means at present every KCC holder takes an average loan of Rs 1.6 lakh. At present the number of active KCCs in the country is 7.71 crore, which also includes farmers involved in fisheries and animal husbandry. Apart from this, from January last year, RBI has also increased the limit of loan without guarantee under KCC from Rs 1.6 lakh to Rs 2 lakh.

Finance Minister Nirmala Sitharaman had said in her budget speech for 2025-26, “KCC provides short-term loans to 77 million farmers, fishermen and dairy farmers. Under the Modified Interest Subvention Scheme (MISS), the limit of loans taken through KCC will be increased from Rs 3 lakh to Rs 5 lakh.”

Under the Modified Interest Subvention Scheme (MISS) of the Agriculture Ministry, KCC holders can take a loan up to Rs 3 lakh at 7% interest for working capital needs. Farmers who repay the loan on time get an additional rebate of 3 percent, due to which the effective interest rate reduces to 4 percent.

How to apply for Kisan Credit Card?

• If you want, you can apply for it by visiting the official website of the bank or by visiting any of your nearest branches.
• From here you will first have to take the form for Kisan Card.
• After this, it will have to be filled and submitted along with necessary documents like Aadhar Card, Voter ID, PAN Card.
• The card will be issued after bank verification.
• Usually the card is received within 15-20 days of applying.

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FDI in Insurance: The Union Cabinet has approved a bill to increase the FDI limit in the insurance sector from 74% to 100%, which will be introduced in the Winter Session of Parliament. The government believes that this step will increase investment in the insurance sector, new players will come and consumers will get better and cheaper services.

Big improvement in insurance sector

Union Finance Minister Nirmala Sitharaman had made this proposal in the budget for the financial year 2025–26, according to which foreign investment will be completely opened up by amending the Insurance Act 1938. So far, foreign investment worth Rs 82,000 crore has been attracted in the insurance sector, and this figure is likely to increase manifold with the new policy.

This bill includes provisions like reducing the minimum capital provision, arrangement for joint insurance license and changes in the LIC Act. This will give more freedom to the Board of Directors of LIC in taking decisions, especially in branch expansion and human resource management.

Competition will increase in the insurance market

The government aims to realize the plan of “Insurance for every citizen” by 2047, and this reform is considered a big step in that direction. This change is expected to increase employment, increase competition in the insurance market and bring transparency in financial services.

The proposed amendments in the Insurance Bill mainly focus on strengthening the interests of policyholders, enhancing their financial security and making it easier for more companies to enter the insurance market. This will accelerate economic growth and will also help in employment generation. These changes will help in increasing the efficiency of the insurance industry, improving ease of doing business and increasing the penetration of insurance.

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Rupee vs Dollar: Indian currency rupee is at its lowest level these days. On Wednesday, the rupee broke the 90 level and reached an all-time low. The biggest reason for this decline in rupee against dollar is the higher demand for dollar against rupee in the market.

Apart from this, continuous selling by foreign investors, geopolitical uncertainty, stalled talks on trade deal can also be held responsible for the fall in the rupee. Union Finance Minister Nirmala Sitharaman has now given a statement regarding this fall in the rupee. She believes that the Indian currency will find its way amid India’s strong growth outlook.

Rupee must find its own way

Speaking at the 23rd edition of the Hindustan Times Leadership Summit (HTLS), the Finance Minister said, “The rupee will have to find its own path.” The Finance Minister stressed that the debate on currency levels should include current economic realities and not compare them with past situations.

The Finance Minister said, “Look at the fundamentals of the economy, look at the growth. The debate on currency should be decided according to the current reality and not by direct comparison with past situations.”

Assess the strength of the economy: Finance Minister

The Finance Minister further said, “As far as the rupee-dollar exchange rate is concerned, when the value of the currency depreciates, the natural logic is that exporters should take advantage of it. Incidentally, some people say that at the time of US tariffs, it has provided some relief. Even if that is true, I am not entirely satisfied with that explanation – but it is true that the strength of the economy must also be assessed along with it.”

Let us tell you that on December 4, the Indian Rupee fell to its lowest level of 90.46 against the US Dollar, the main reason for which is the delay in the India-US trade deal and the continuous withdrawal of foreign capital from the Indian stock market. The special thing is that when retail inflation is at a record low and GDP growth is above 8 percent, then the weakening of the domestic currency against the dollar is surprising.

What will be the growth of the economy?

In the second quarter, GDP growth reached the highest level in six quarters at 8.2 percent. On the other hand, India’s retail inflation fell to a record low of 0.25 percent in October. The Finance Minister believes that the growth of the Indian economy will continue in the coming times and the overall growth this year (FY26) may be 7 percent or even more.

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Nirmala Sitharaman Viral Video: In this era of modernity, hundreds of people are becoming victims of fraud every day. Sometimes in the name of some scheme and sometimes by luring money, people are being cheated. Meanwhile, a video of Finance Minister Nirmala Sitharaman is becoming increasingly viral on social media these days. In this video She is promoting an investment scheme that guarantees returns of ₹1.5 lakh in just one month on an investment of ₹21000. Know what is the truth of this video.

What is the truth of the claim?

PIB has investigated this video promising high returns. PIB has told that this video is completely fake and has been made with AI. According to PIB, the Finance Minister has not made any announcement related to any such scheme. The Government of India has clarified that no investment scheme providing such returns has been launched by any government authority.

Don’t Get Trapped by Fake Investment Claims

A doctored video of Union Finance Minister @nsitharaman is being shared online, falsely suggesting she is promoting an investment scheme that guarantees ₹1.5 lakh in just one month for an investment of ₹21,000.

#PIBFactCheck, pic.twitter.com/NFTHlhmiGW

— PIB Fact Check (@PIBFactCheck) November 24, 2025

The government appealed to the people

The government has called on citizens to exercise more caution when accessing financial content online. It has advised people to rely only on verified announcements published on government websites, press releases or trusted news platforms. Any investment promising very high returns in a short period of time should be considered a red flag.

(Remember: The information given here is for informational purposes only. It is important to mention here that investing in the market is risky. Always consult an expert before investing money as an investor. ABPLive.com never advises anyone to invest money here. Stock market related news is given here only for educational purpose. We do not give call or tip about any stock.)

Nirmala Sitharaman: An incident of cyber crime has come to light from Pune, Maharashtra, which you will be stunned to hear about. This time, cyber criminals adopted a new tactic of fraud and forged the signature of Union Finance Minister Nirmala Sitharaman on a fake arrest warrant.

This is how the woman was intimidated

India Today report quoting Pune City Cyber ​​Police said that this time cyber criminals made a 62-year-old retired LIC officer their hunter. They cheated him of Rs 99 lakh by threatening him. The matter is of October. During this time, cyber criminals, pretending to be government officials, duped the woman and threatened her with digital arrest. Let us know what is the whole matter?

Use of fake signature of Finance Minister

The accused first contacted the victim, living in Kothrud area of ​​Pune, in the last week of October. During this, he introduced himself as an officer of the Data Protection Agency and accused them of misuse of the mobile number linked to his Aadhaar number in some case of fraud. After this he transferred the call to another fraud named George Mathew.

This was a video call, in which the fraudsters trapped the woman and accused her of money laundering and threatened to freeze her bank account. To ensure that no one has any doubt, the fraudsters sent a fake arrest warrant to the woman bearing Nirmala Sitharaman’s forged signature and government seal.

This is how the woman realized

The woman was told that due to her old age, she was placed under ‘digital arrest’ and would be monitored remotely. The woman was also told to transfer all her money to RBI accounts for verification. The frightened elderly woman accepted his words and transferred around Rs 99 lakh to several accounts one by one.

Later, all the Mule accounts were found. To maintain trust, the criminals also sent fake receipts to the Enforcement Directorate (ED). After a few days, when the woman called that number, the number came switched off. Then they realized that they had been cheated a lot.

This was revealed in the investigation

The woman lodged a complaint with the Pune City Cyber ​​Police without any delay. Investigation revealed that this gang was being operated from Thane. At present the police is investigating the bank accounts and mobile numbers. Hopefully some concrete clue will be found soon.

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Bank Merger 2.0: Work is going on at a fast pace on the merger of public sector banks in the country. For this, the government is discussing with RBI (Reserve Bank of India) and public sector banks. The Finance Minister says that the country now needs strong, big and reliable government banks. For this, first the government will have to sit and talk with the banks and see how they want to take it forward.

He further said, “We are also in discussion with the Reserve Bank on what is their view on creating big banks.” Addressing the 12th SBI Banking and Economics Conclave in Mumbai on November 6, the Finance Minister said, “A lot of work remains to be done before I say yes.” I have taken the decision and work has also started in this direction.

Why will banks be merged?

Emphasis is being laid on merger of banks so that the number of banks can be reduced and the banking system can be made more streamlined and simple. Its effect will be visible in the coming time in the form of improvement in the financial sector and the scope of giving loans will also increase. With the merger of government banks, small and medium sized government banks will be merged into big government banks. With this, the banking system will become stronger and structured.

Under Bank Merger 2.0, Indian Overseas Bank (IOB), Central Bank of India (CBI), Bank of India (BOI) and Bank of Maharashtra (BOM) can be merged with big banks like Punjab National Bank (PNB), Bank of Baroda (BoB) and State Bank of India (SBI).

These banks have been merged earlier

Earlier in the year 2019, the government had announced the merger of 4 PSU banks under Bank Merger 1.0. During this period, United Bank of India and Oriental Bank of Commerce were merged into Punjab National Bank. Syndicate Bank was merged with Canara Bank. Allahabad Bank was merged into Indian Bank. Also, Andhra Bank and Corporation Bank were merged into Union Bank of India. Apart from this, Dena Bank and Vijaya Bank were merged with Bank of Baroda. With this, the number of public sector banks in the country has reduced from 27 in 2017 to 12 now.

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Nirmala Sitharaman To GST Officials: Finance Minister Nirmala Sitharaman said on Friday that GST officials should behave politely and sympathetically with honest taxpayers. He also called upon the officials to grant speedy registration approvals, use technology for grievance redressal and bring ease of doing business through regional units.

Nirmala’s instructions

The Union Minister told the GST officials that there is no iron wall between you and the businessman, there is just a gust of wind. Understand the problem and don’t complicate it. Speaking at the inauguration of the CGST building in Ghaziabad, he said that disciplinary proceedings against officials of the Central Board of Indirect Taxes and Customs (CBIC) should be completed on time. This will send a clear message that any kind of misconduct, dereliction or unethical behavior will not be tolerated.

The Finance Minister also made it clear that humility does not mean compromise with laws and rules. He said that honest taxpayers should be treated respectfully but follow the standard procedures laid down to bring the ‘bad guys’ within the ambit of the law. Don’t look at everyone with suspicion. Dishonest taxpayers will not be given any relief.

Sitharaman further said that the ultimate goal of tax administration is to make life easier for honest taxpayers. For this, GST officials should follow the prescribed standard procedures and show more empathy and courtesy. He said that it is important that you remain humble. The next generation GST is not just about rates, categories or simplification. This should make the taxpayer feel different.

GST officials should be polite

The Union Finance Minister also asked GST officials to use technology and risk-based standards to reduce the compliance burden on taxpayers seeking registration. He clarified that he does not want anyone at the regional level to put the responsibility on the taxpayer. Use technology to analyze the situation and contact the taxpayer only when necessary. Do not put the paperwork burden on the taxpayer.

Also, the Minister said that the root cause of the problems repeatedly arising in the Central GST areas should be found. Speedy disposal of disciplinary cases strengthens accountability in the organization and removes the perception among the public of apathy or protectionism towards officials. Their motto should be: ‘If you do wrong then there is no harm, if you do right there is no hatred.’

Lastly, Sitharaman said that pending GST investigations should be completed with prompt, reasoned and evidence-based orders and the cost of litigation should be reduced.

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