New Delhi, April 1 The defence ministry said on Wednesday that it has fully utilized the capital allocation of ₹1.86 lakh crore set aside for the defence services in the 2025-26 financial year.
It said that the ministry had signed contracts for capital procurement of 503 proposals amounting to ₹2.28 lakh crore.
The original allocation for capital expenditure was ₹1.80 lakh crore, which was further augmented by the finance ministry, considering the pace of expenditure achieved by the defence ministry during the first two quarters and the increased requirements of the forces for modernisation and other purposes after Operation Sindoor, it said.
"A significant portion of the expenditure is allocated to the acquisition of aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, shipbuilding, aviation stores, and projectiles," it said.
"These include proposals for the acquisition of multi-role fighter aircraft, medium-altitude long-endurance remotely piloted aircraft (RPAs) for the Air Force, mine countermeasure vessels for the Navy, quick reaction surface-to-air missile systems, and the Nag Missile System Mark-2 for the Army, among others," the defence ministry said in a statement.
In addition to modernizing the armed forces, the effective utilization of expenditure will also aid infrastructure development in border areas, it said.
The defence ministry has also given approval to 109 proposals worth ₹6.81 lakh crore, compared to 56 proposals worth ₹1.76 lakh crore approved in the 2024-25 financial year.
The Ministry of Defence has fully utilized its capital allocation of ₹1.86 lakh crore for defence services for the 2025-26 financial year, at the revised estimates stage, it said.
"This milestone achieved by the MoD is in continuation of the complete utilization of the capital budget achieved during the 2024-25 financial year, after many years. The overall utilization of the defence budget, including MoD (civil), pensions, etc., during the 2025-26 financial year, stands at 99.62 per cent against the final allocation to the MoD," the ministry said.