New Delhi, Feb 1: The Union government allocated over Rs 6.81 lakh crore to the Ministry of Defence (MoD) on Saturday and further increased the defence pension by 14 per cent.

An official of the MoD said that In pursuance of Prime Minister Narendra Modi-led government’s vision of ‘Viksit Bharat @ 2047’, with technologically advanced and ‘Aatmanirbhar’ Armed Forces, the Union Budget has made a provision of Rs 6,81,210.27 crore for Financial Year (FY) 2025-26 for the Ministry of Defence.

“This allocation is 9.53 per cent more than the Budgetary Estimate of FY 2024-25 and stands at 13.45 per cent of the Union Budget, which is the highest among the ministries,” the official added.

He said that out of this, Rs 1,80,000 crore i.e. 26.43 per cent of total allocation will be spent on Capital Outlay on Defence Services.

“On Revenue Head, the allocation for the Armed Forces stands at Rs 3,11,732.30 crore which is 45.76 per cent of total allocation. Defence Pension receives a share of Rs 1,60,795 crore i.e. 23.60 per cent and a balance of Rs 28,682.97 crore i.e. 4.21 per cent for civil organisations under MoD. The Ministry has taken a decision to observe 2025-26 as the ‘Year of Reforms’ which will further strengthen the resolve of the government for the modernisation of the Armed Forces and is aimed at simplification in the Defence Procurement Procedure to ensure optimum utilisation of the allocation,” he said.

Addressing the media in New Delhi, Defence Minister Rajnath Singh congratulated Finance Minister Nirmala Sitharaman for presenting a budget to fulfil the Prime Minister’s resolve of Viksit Bharat.

“This budget will promote the development of youth, poor, farmers, women and all other sections of society. Recognising the contribution of the middle class, the budget has brought an unprecedented gift,” said the Defence Minister.

Meanwhile, the official said that Rs 1,80,000 crore has been allocated to the Capital Outlay of the Defence Forces.

“This allocation is 4.65 per cent higher than the Budgetary Estimate (BE) of FY 2024-25,” the official said.

He added that Out of this, Rs 1,48,722.80 crore is planned to be spent on Capital Acquisition, termed as the modernisation budget of the Armed Forces and the remaining Rs 31,277.20 crore is for capital expenditure on Research & Development and the creation of infrastructural assets across the country.

The ministry said that for FY 2025-26, Rs 1,11,544.83 crore i.e. 75 per cent of the modernisation budget has been earmarked for procurement through domestic sources and 25 per cent of the domestic share i.e. Rs 27,886.21 crore has been provisioned for procurement through domestic private industries.

The ministry further added Rs 3,11,732.30 crore has been allocated for this purpose which is 10.24 per cent higher the than budgetary allocation of FY 2024-25.

“Out of this, Rs 1,14,415.50 crore has been allocated on account of non-salary expenditure which will facilitate procurement of ration, fuel, ordnance stores and maintenance/repair of equipment etc,” he said.

The ministry further added that under the Salary Head of revenue expenditure, Rs 1,97,317.30 crore has been allocated to take care of Pay & Allowances of the three services and any further requirement will be addressed during mid-year review.

It said that the budgetary allocation to the Defence Research and Development Organisation (DRDO) has been increased to Rs 26,816.82 crore in FY 2025-26 from Rs 23,855.61 crore in FY 2024-25 which is 12.41 per cent higher than the BE of 2024-25.

“Out of this, a major share of Rs 14,923.82 crore has been allocated for capital expenditure and to fund the R&D projects,” it said.

To encourage start-up the ecosystem for innovation in defence, Rs 449.62 crore has been allocated to the iDEX scheme, including its sub-scheme Acing Development of Innovative Technologies with iDEX (ADITI) to be utilised for funding the projects to be taken up under this scheme.

The ministry said that allocation in this head shows a jump of almost three times in two years.

The ministry also informed about the government’s resolve for ex-servicemen welfare and in the ensuing FY, Rs 8,317 crore has been allocated towards ECHS which is 19.38 per cent higher than BE of FY 2024-25.

“During the mid-year review in the current FY, additional allocation was made to meet the emergent requirements of medical treatment-related expenditure,” the ministry said.

The ministry further informed that there are approximately 34 lakh defence pensioners whose monthly pension is met out of the Defence Pension Budget.

“In order to further enhance the Defence Pension for the Armed Forces, One Rank One Pension (OROP) was implemented w.e.f. July 2014. Since then, it is revised after every five years. Third revision under OROP came into effect from July 2024 and it was timely implemented,” the ministry said.

It added that considering elements of expenditure under Defence Pension, Rs. 1.61 lakh crore has been allocated for FY 2025-26, which is 13.87 per cent higher than the allocation made during FY 2024-25.

The ministry also informed that that the Indian Coast Guard (ICG) has been allotted Rs 9,676.70 crore under Capital and Revenue Head which is 26.50 per cent more than the allocation for FY 2024-25 at the BE stage.

“A jump of 43 per cent in Capital Budget i.e. from Rs 3,500 crore for FY 2024-25 to Rs 5,000 crore for FY 2025-26 will provide adequate financial space for the acquisition of Advanced Light Helicopters (ALH), Dornier Aircraft, Fast Patrol Vessels (FPVs), Training Ships, Interceptor Boats etc. On revenue head, the allocation has been increased from Rs 4,151.8 crore for FY 2024-25 to Rs 4,676.70 crore for FY 2025-26 which shows an increase of 12.64 per cent,” the ministry said.

For strengthening the border infrastructure and to facilitate the movement of Armed Forces personnel through tough terrains, Rs 7,146.50 crore has been allocated to the Border Roads Organisation (BRO) under the capital head which is 9.74 per cent higher than the BE of 2024-25.

New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Saturday enhanced the total outlay for Jal Jeevan Mission to Rs 67,000 crore in her proposals for Budget 2025-26 and said that the Mission stands extended until 2028.

FM Sitharaman stated that 15 crore households representing 80 per cent of India’s rural population have benefitted from the Jal Jeevan Mission since 2019.

She added that access to potable tap water connections is provided under this Mission, and in the next three years, the target is to achieve 100 per cent coverage.

Jal Jeevan Mission’s focus will be on the quality of infrastructure and operation and maintenance of rural piped water supply schemes through “Jan Bhagidhari”.

Separate MoUs will be signed with states and UTs to ensure sustainability and citizen-centric water service delivery, she explained.

The Union Government has launched several flagship schemes aimed at fostering inclusive rural development, poverty alleviation, and improving the living conditions in rural areas.

These initiatives, implemented under the Ministry of Rural Development and other key departments, address critical areas such as employment generation, housing, infrastructure, skill development, and social welfare.

For instance, the vision of the Mahatma Gandhi National Rural Employment Guarantee Act is to enhance the livelihood security of rural households across the country by providing at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

MGNREGA recognises the importance of strengthening the livelihood resource base of the poor by reaching the most vulnerable sections of rural areas, including Scheduled Castes, Scheduled Tribes, women-headed households, and other marginalised groups.

Adopted in the Union Budget 2017-18, Mission Antyodaya is a convergence and accountability framework aiming to bring optimum use and management of resources allocated by 26 Ministries / Department of the Government of India under various programmes for the development of rural areas.

It is envisaged as a state-led initiative with Gram Panchayats as focal points of convergence efforts.

New Delhi, Feb 1: In a historic move, Finance Minister Nirmala Sitharaman presented her 8th consecutive Union Budget on Saturday, with a focus on driving growth through four key sectors: Agriculture, MSMEs, Investment, and Exports. In a major relief for taxpayers, Sitharaman announced that individuals earning up to Rs 12 lakh annually will no longer have to pay income tax under the new regime. The middle class has hailed the decision as a step forward for financial relief and growth.

Talking to IANS, Manjusha Shrivastava, a fashion designer, expressed optimism, highlighting the benefits for the handicraft sector and its potential to create employment. She acknowledged that while women-specific announcements were limited, the overall growth strategy would benefit all, including women.

Subramanyam Harda, President of the Bangalore Hotel Association, emphasised the relief for middle-class earners, especially with the reduced tax slabs and benefits for the salaried class. Though inflation remains a concern, he believes the changes will ease the financial pressure on working families.

Businesswoman Vartika Shukla called the Rs 12 lakh tax exemption the best part of the budget, along with reduced taxes on life-saving medicines for critical illnesses. However, she voiced disappointment over the lack of substantial focus on women’s issues, despite initial expectations.

Vikas Kumar, another middle-class citizen, was overjoyed by the Rs 12 lakh exemption, calling it a “bumper deal” and a much-awaited relief. Though cautious about inflation, he expressed confidence that the extra savings would be a welcome boost for families.

Overall, the budget has sparked hope and excitement among the middle class, with many seeing it as a positive step towards financial freedom and economic growth.

Finance Minister Nirmala Sitharaman on Saturday announced that there will be no income tax payable for incomes up to Rs 12 lakh annually, and Rs 12.75 lakh for salaried taxpayers (including standard deduction).

In the new tax regime, the revised tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 per cent), Rs 8-12 lakh (10 per cent), Rs 12-16 lakh (15 per cent), Rs 16-20 lakh (20 per cent), Rs 20-24 lakh (25 per cent), and above Rs 24 lakh (30 per cent).