As Union Finance Minister Nirmala Sitharaman prepares to unveil the Union Budget for the Financial Year 2025-26 on Saturday (February 1), the Ministry of Defence is expected to receive its highest-ever allocation. A significant portion of the funds is likely to be directed towards strengthening border infrastructure and boosting the indigenous defence industry.
In the previous financial year (2024-25), the Ministry of Defence was allocated Rs 6,21,940.85 crore (approximately USD 75 billion), making it the highest-funded ministry.
The budget for the Border Roads Organisation (BRO) stood at Rs 6,500 crore – 30 per cent higher than the previous year and a staggering 160 per cent increase from the 2021-22 allocation.
This year, however, the BRO is expected to receive an even larger share as the Central government intensifies its efforts to flex its muscles to match China’s border infrastructure buildup along the Line of Actual Control (LAC).
“The Government is firm on its commitment to improving border infrastructure through higher allocation to the agencies involved in executing strategically significant projects along with providing last-mile connectivity in the border areas. In this endeavour, the Union Budget for the BRO will further provide a push to several new projects along the borders,” a source within the Ministry of Defence told India Today TV.
The government reiterated its focus on border infrastructure in October 2024 when Defence Minster Rajnath Singh inaugurated 75 new BRO infrastructure projects worth Rs 2,236 crore.
These included 22 roads, 51 bridges, and two other projects spanning across 11 states and union territories. Among them, 19 projects were in Jammu and Kashmir, 11 in Ladakh, and 18 in Arunachal Pradesh, with the remaining spread across Uttarakhand, Sikkim, Himachal Pradesh, West Bengal, Rajasthan, Nagaland, Mizoram, and the Andaman & Nicobar Islands.
Since the Galwan clash with China in 2020, India has significantly ramped up its border infrastructure. In 2022-23, the government increased the BRO’s capital outlay by a record 40 per cent to Rs 3,500 crore from Rs 2,500 crore the previous year.
In 2021, the BRO completed 102 infrastructure projects at high altitudes and in extreme weather conditions, including the construction of the world’s highest motorable road at Umling La, situated at 19,024 feet.
In 2024-25, the Defence Ministry’s allocation was Rs 1 lakh crore (18.43%) higher than in 2022-23, with a 4.79 per cent increase from the 2023-24 budget.
Of this, 27.66 per cent was earmarked for capital expenditure, 14.82 per cent for revenue expenditure related to operational preparedness, 30.66 per cent for salaries, 22.70 per cent for defence pensions, and 4.17 per cent for civil organisations under the ministry.
The total allocation constituted approximately 12.90 per cent of India’s total budgetary expenditure.
The upcoming budget for 2025-26 is expected to reinforce the government’s focus on ‘aatmanirbharta’ (self-reliance) in defence technology and manufacturing, ensuring the Armed Forces are equipped with modern weapons and platforms while generating job opportunities for the youth.
The financial provisions are also anticipated to support strategic infrastructure development in border areas, enhancing both security and socio-economic growth.
Key projects benefiting from increased defence allocations in previous budgets include the development of the Nyoma Airfield in Ladakh at an altitude of 13,700 feet, permanent bridge connectivity to India’s southernmost panchayat in the Andaman and Nicobar Islands, the strategically crucial 4.1 km Shinku La tunnel in Himachal Pradesh, and the Nechiphu tunnel in Arunachal Pradesh.
With a record defence budget expected this year, similar large-scale projects are likely to receive a further boost, reinforcing India’s border security and self-reliance in defence manufacturing.
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