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Union Budget 2026-27 allocates ₹7.85 lakh crore to Defence, a 15.19% increase for modernisation and DRDO funding

EconomyPolityScience & TechSecurity & DefenceInfrastructureCORE
Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
07 Feb 2026
~2 min
Source: The Hindu
Key Data:₹7.85 lakh crore15.19% increase14.67% of total Central Government expenditureFY 2025-26FY 2026-27₹29,100.25 crore (DRDO)
Bodies:NITI AayogMinistry of DefenceDRDO
Practice MCQs from today's news ▸
What This Article Covers

1.The Defence Budget for FY 2026-27 is ₹7.85 lakh crore, a 15.19% hike over the previous year, constituting 14.67% of total central government expenditure.

2.The SHANTI Bill 2025 aims to open the nuclear energy sector for private sector participation to help achieve India's 100 GW nuclear power target.

3.The government has launched a ₹1 lakh crore Research Development Innovation (RDI) initiative to boost private R&D and missions on semiconductors, rare earths, and critical minerals.

The Big Picture
Prelims · HighMains · Medium

The Union Budget 2026-27 has allocated ₹7.85 lakh crore to the Ministry of Defence, marking a 15.19% increase, signalling a major thrust towards military modernisation and self-reliance. Key initiatives include boosting DRDO funding, opening the nuclear sector to private players via the SHANTI Bill, and launching a ₹1 lakh crore RDI fund to catalyse innovation. This is a critical update for aspirants covering Defence, Public Finance, and S&T policies.

Exam Lens

Quick Exam Facts From News

Defence Budget FY27₹7.85 lakh crore
Budget Increase15.19% (over FY26 BE)
DRDO Allocation FY27₹29,100.25 crore
RDI Initiative Outlay₹1 lakh crore
Nuclear Power Target100 GW

1-Minute Revision

  • ›Defence Budget FY27: ₹7.85 lakh crore
  • ›Budget Increase: 15.19% (over FY26 BE)
  • ›Target this Data: Defence Budget 2026-27 is ₹7.85 lakh crore, a 15.19% increase.
  • ›Target this Nodal Body: The SHANTI Bill 2025 pertains to the Department of Atomic Energy (DAE).
  • ›Target this Legal Point: The SHANTI Bill aims to amend the Atomic Energy Act, 1962, to allow private sector participation.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The SHANTI Bill, 2025, mentioned in the context of opening the nuclear sector, primarily comes under the purview of which government department?

Q2Statement-basedHard

Consider the following statements regarding the Defence Budget 2026-27:

1. It marks an increase of over 15% compared to the Budget Estimates of the previous financial year.

2. The allocation to DRDO has been reduced to focus more on capital procurement from foreign vendors.

3. It accounts for nearly 15% of the total Central Government expenditure.

Q3Data-centricMedium

What is the allocated outlay for the Research Development Innovation (RDI) initiative launched to strengthen research and innovation, as per the news?

Q4Application/ImpactMedium

What is the primary strategic objective behind the government's push for private sector participation in the nuclear energy sector through the SHANTI Bill?

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