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Union Budget: Over Rs 6.81 lakh crore allocated for MoD, defence pension increased by 14 pc

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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.

Crime

CBI arrests two CGST officers in Mumbai for accepting Rs 25,000 bribe

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Mumbai, Oct 8: The Central Bureau of Investigation (CBI) on Wednesday said it has arrested a Superintendent and an Inspector of the Central Goods and Services Tax (CGST) in Mumbai, for allegedly demanding and accepting a bribe of Rs 25,000 from a businessman.

According to a CBI statement, the arrested officials have been identified as Superintendent Vikram and Inspector Lav Kumar Chittoria, both posted in the CGST Santacruz Division.

The case was registered on Tuesday following a complaint from a textile trader who had applied online for GST registration of his firm on September 24, the statement said.

The complainant alleged that during a field inspection on October 3, Chittoria demanded Rs 25,000 as illegal gratification for himself and his superior officer.

The officers allegedly warned that the GST registration certificate would not be issued unless the bribe was paid.

Acting on the complaint, the CBI laid a trap and caught both the accused red-handed while accepting the bribe amount inside the CGST West Mumbai Office on Tuesday.

The bribe money was recovered from their possession. Following the arrests, searches were carried out at the offices and residences of both officials, during which several incriminating documents were also seized.

A CBI spokesperson said that both officers were taken into custody for interrogation and will be produced before a competent court in Mumbai later in the day.

“Further investigation is underway to determine whether other officials were involved in the bribery racket and to trace possible links with similar cases,” the official added.

The agency reiterated its zero-tolerance policy towards corruption in government departments and urged citizens to report any instance of demand for bribes through its dedicated helpline and online portal.

Just a few days ago, in its crackdown on bribery in government offices, the CBI arrested two senior government officials of the Ministry of Defence and a railway hospital, in two separate cases of bribery.

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Business

Committed to boosting Mumbai’s infrastructure, ease of living: PM Modi

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Mumbai, Oct 8: Prime Minister Narendra Modi on Wednesday reaffirmed his government’s commitment to enhancing Mumbai’s infrastructure and the ‘Ease of Living’ as he is set to inaugurate Phase-1 of the Navi Mumbai International Airport (NMIA) and the Mumbai Metro Line-3.

In a post on X, PM Modi said, “On the way to Navi Mumbai to take part in the programme marking the inauguration of Phase-1 of the Navi Mumbai International Airport. With this, the Mumbai Metropolitan Region will get its second major international airport, thus boosting commerce and connectivity.”

“The final phase of the Mumbai Metro Line-3 will also be inaugurated. We are committed to enhancing Mumbai’s infrastructure and boosting ‘Ease of Living’ for the people of this dynamic city,” he added.

Phase-1 of the Navi Mumbai International Airport, developed at an estimated cost of Rs 19,650 crore, will be inaugurated by the Prime Minister in line with his vision of transforming India into a global aviation hub.

The Navi Mumbai International Airport is India’s largest Greenfield airport project, developed under a Public-Private Partnership (PPP) model. As the second international airport for the Mumbai Metropolitan Region, it will work in coordination with the Chhatrapati Shivaji Maharaj International Airport (CSMIA) to reduce congestion and position Mumbai among global cities with multi-airport systems.

Spread across 1,160 hectares, NMIA is designed to be one of the most efficient airports in the world, capable of handling up to 90 million passengers per annum and 3.25 million metric tonnes of cargo.

Among its standout features is an Automated People Mover (APM) system that will connect all four passenger terminals to facilitate smooth inter-terminal transfers. A landside APM will also link the city-side infrastructure, ensuring convenience for passengers and staff.

Committed to sustainability, the airport will include storage for Sustainable Aviation Fuel (SAF), solar power generation of nearly 47 MW, and electric bus services for city-wide connectivity. NMIA will also become the country’s first airport to be connected by a Water Taxi service.

In addition to the airport, PM Modi will inaugurate Phase 2B of the Mumbai Metro Line-3, which stretches from Acharya Atre Chowk to Cuffe Parade and has been constructed at an estimated cost of Rs 12,200 crore.

With this launch, the Prime Minister will dedicate the entire Mumbai Metro Line-3 (Aqua Line) to the nation. Built at a total cost exceeding Rs 37,270 crore, this milestone marks a major leap forward in the city’s urban transport infrastructure.

Mumbai Metro Line-3, the city’s first fully underground metro line, is set to redefine commuting in the Mumbai Metropolitan Region by offering faster, more efficient, and eco-friendly transport options for millions of daily commuters.

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National News

Akhilesh Yadav to meet SP veteran Azam Khan in Rampur amid rumours of latter’s party switch

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Lucknow, Oct 8: In a significant political development in Uttar Pradesh, Samajwadi Party (SP) supremo Akhilesh Yadav is set to meet old warhorse Azam Khan on Wednesday, a meeting seen by many as an attempt to bring an end to ‘differences and distrust’ with the party stalwart.

The meeting between the duo will be closely watched, not just by SP workers but also by political analysts, as this is expected to have greater ramifications for the party in strengthening its Muslim votebank, as the latter is one of the biggest Muslim faces of the party and commands strong influence in Western Uttar Pradesh areas like Moradabad, Amroha, and other cities.

SP’s Bareilly president Shivcharan Kashyap said that Akhilesh Yadav will arrive in Bareilly from Amausi Airport and from there, he will travel to Rampur by road.

He informed that the two leaders will meet and discuss issues in private.

The proposed meeting between the two comes amidst rumours of Azam Khan, once one of the most powerful ministers in the SP government, contemplating a switch to BSP.

Azam Khan, one of the tallest SP leaders in Uttar Pradesh, was incarcerated in jail for about two years, and this left him ‘disillusioned and disenchanted’ with the SP leadership, as the latter failed to show solidarity with him during his difficult time.

After his release from Sitapur jail on September 23, Azam Khan also said that he will meet only Akhilesh Yadav and no one else.

“Akhilesh Yadav will meet me, and I will meet only him,” he said, while replying to reporters, when quizzed about meeting the SP supremo.

He also said sarcastically, “It’s his magnanimity that he’s coming to meet a goat thief and a buffalo thief.”

Rumours of Azam Khan joining the BSP have been circulating in political circles for quite some time. However, he rubbished all these speculations, calling himself a true soldier of the party.

Azam Khan was one of the founding members of the Samajwadi Party and one of the closest aides of late Mulayam Singh Yadav. The meeting with Akhilesh Yadav is not only an attempt to rekindle old relationships but also to convey a message of unity within the party.

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