The Union Budget 2026 has allocated a record ₹5.94 lakh crore for defence spending, a 13.5% increase from the previous year.

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Union Budget 2026: Accelerating the ‘Reform Express’ in defence and national security
The Union Budget 2026 has provided a significant boost to India's defence funding, signaling the government's commitment to strengthening the country's national security. The efficacy and design of the follow-up reforms will be crucial in ensuring cost-effective and precise delivery of defence capabilities. This development is highly relevant for candidates preparing for competitive exams such as UPSC, SSC, Banking, Railway, State PSC, Defence, and Teaching, as it showcases the government's priorities and policy decisions in the defence sector.
Revision structure
Key points
Exam-ready takeaways
The budget has earmarked ₹1.38 lakh crore for capital expenditure, which includes the procurement of new military equipment and modernization of the armed forces.
The government has announced the establishment of a 'Defence Innovation Fund' with an initial corpus of ₹10,000 crore to promote indigenous defence research and development.
The budget has also provided ₹3,000 crore for the 'Agnipath' scheme, which aims to recruit young individuals into the armed forces for a short-term period of four years.
The government has set a target of achieving 'Atmanirbharta' (self-reliance) in the defence sector, with 68% of the capital procurement budget earmarked for domestic acquisition.
How to study
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Revise monthly events by exam family instead of reading random updates.
Pair one-liners with mock tests so mistakes become the next revision list.
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