New Delhi, Apr 1: The defence ministry on Wednesday said it has fully utilised the capital outlay of Rs 1.86 lakh crore set aside for the defence services provided in the financial year 2025-26.
It said capital procurement contracts for a total 503 proposals amounting to Rs 2.28 lakh crore were signed by the ministry.
The original appropriation for capital expenditure was Rs 1.80 lakh crore, which was further augmented by the finance ministry in view of the pace of expenditure achieved by the defence ministry during the first two quarters and considering the increased requirement of the forces for modernisation and other purposes post Operation Sindoor, it said.
“A significant portion of the expenditure is towards acquisition of aircraft and aero engines followed by land systems, electronic warfare equipment, armaments, ship building, aviation stores and projectiles,” it said.
“These include proposals for acquisition of multi role fighter aircraft, medium altitude long endurance RPA (remotely piloted aircraft) for Air Force, mine counter measure vessels for Navy, quick reaction surface to air missile system and Nag Missile system Mark-2 for Army etc, among others,” the defence ministry said in a statement.
In addition to modernising armed forces, the effective utilisation of expenditure will also aid infrastructural development in the border areas, it said.
Acceptance of Necessity (AoN) or initial approval was accorded to 109 proposals amounting Rs 6.81 lakh crore by the defence ministry, compared to 56 proposals worth Rs. 1.76 lakh crore approved in FY 2024-25, it said.
The Ministry of Defence has fully utilised its capital outlay of Rs 1.86 lakh crore for defence services provided for the FY 2025-26 at revised estimates stage, it said.
“This milestone achieved by MoD is in continuation to the complete utilization of the capital budget achieved during FY 2024-25 after many years. The overall utilisation of defence budget including MoD(civil), pension, etc. during the FY 2025-26 stands at 99.62 per cent against final allocation to MoD,” the ministry said.
