MoD Spends Over 50% of FY26 Defence Capital Outlay by September

15 Oct 2025 CW Team

The Ministry of Defence (MoD) has utilised more than 50 per cent of its capital outlay for FY 2025–26 by the end of September. The capital expenditure stands at Rs 922,114.4 million (51.23 per cent) out of the total allocation of Rs 18 billion.

In the previous fiscal, MoD had fully utilised its capital budget of Rs 1,597,684 million. This strong expenditure pace will ensure timely delivery of major platforms such as aircraft, ships, submarines, and weapon systems vital for the modernisation of the Armed Forces. Most of the spending has been on aircraft and aero engines, followed by land systems, electronic warfare equipment, armaments, and projectiles. Capital expenditure plays a critical role in strengthening national security through the acquisition of new assets, research and development, and infrastructure development in border areas, while also stimulating economic growth and employment.

With several high-value projects nearing approval, MoD aims to fully utilise its capital allocation by the end of the financial year. The Ministry is also preparing revised budget estimates. The Rs 18 billion capital allocation at the Budget Estimates stage marks a 12.66 per cent increase over the actual expenditure of FY 2024–25. Continuing its focus on self-reliance, MoD has earmarked Rs 1,115,448.3 million for domestic procurement in FY 2025–26, of which 45 per cent has already been spent. This aligns with the government’s push for Aatmanirbharta in defence technology and manufacturing, encouraging participation from MSMEs and start-ups. Capital outlay for the Services has seen consistent growth—rising nearly 60 per cent over the past five years.

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