MoD fully utilizes ₹1.86L/cr capital budget for 2025-26, 99.62%
The Ministry of Defense (MoD) has fully used its ₹1.86 lakh crore capital budget for 2025-26, a big deal, with overall defence-budget utilization standing at 99.62%.
This shows a strong push from different MoD departments to keep up with growing needs and set a new standard after achieving similar complete capital-budget utilization in FY 2024-25 (the previous financial year).
MoD plans 22% capital outlay increase
The budget was bumped up from ₹1.80 lakh crore to meet the pace of expenditure in the first two quarters and the increased requirement for modernisation and other purposes after Operation Sindoor, with major spending on aircraft and engines.
The MoD also cleared over 100 new proposals and signed contracts for hundreds of projects, aiming to strengthen both the forces and border infrastructure.
Looking ahead, there's already a plan to raise the FY 2026-27 capital outlay (22% increase), so expect even more upgrades soon.