Has the Defence Ministry Utilized Over 50% of Its Capital Outlay by September in the Current Fiscal?
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Synopsis
In a significant achievement, the Ministry of Defence has exceeded 50% of its capital outlay for FY26 by September's end, with a total expenditure of Rs 92,211.44 crore. This strategic spending aims to modernize the Armed Forces and enhance national security. Read on to discover how this impacts defense capabilities.
Key Takeaways
- MoD has utilized over 50% of its capital outlay for FY26 by September.
- Total capital expenditure stands at Rs 92,211.44 crore.
- The expenditure is vital for the modernization of the Armed Forces.
- Major investments are made in aircraft and aero engines.
- Capital expenditure impacts national security and economic growth.
New Delhi, Oct 13 (NationPress) The Ministry of Defence (MoD) has successfully utilized over 50 percent of its capital outlay for the current fiscal year (FY26) by the end of September. The total capital expenditure amounts to Rs 92,211.44 crore, as revealed on Monday.
Of this, the expenditure of Rs 92,211.44 crore (51.23 percent) is derived from a total allocation of Rs 1,80,000 crore.
In the previous financial year, the MoD fully utilized its capital expenditure of Rs 1,59,768.40 crore.
The achievement of exceeding 50 percent capital outlay is pivotal in facilitating the timely delivery of essential platforms, including aircraft, ships, submarines, and weapon systems, which are critical for the modernization of the Armed Forces in the upcoming year.
The majority of the expenditure has been allocated towards aircraft and aero engines, with significant investments in land systems, electronic warfare equipment, armaments, and projectiles.
Capital expenditure plays a vital role in the defense sector as it finances the acquisition of new assets, research and development, and infrastructure development in border areas—all of which are crucial to the nation’s national security. Additionally, capital expenditure generates a multiplier effect on economic growth and job creation.
“At this pace of expenditure and with larger projects nearing approval, MoD is dedicated to fully utilizing the capital allocation by the conclusion of the current fiscal year,” it stated.
Simultaneously, the Ministry is preparing budgetary projections for revised estimates. It is important to note that this fiscal year, the Ministry of Defence was allocated Rs 1,80,000 crore under the capital head during the Budget Estimates stage by the Ministry of Finance.
This allocation represents an increase of 12.66 percent compared to actual expenditures from FY 2024-25.
Since FY 2020-21, the Ministry of Defence has actively supported domestic industries by allocating funds for procurement from local sources.
For FY 2025-26, Rs 1,11,544.83 crore has been designated for the domestic industry, with significant spending of 45 percent recorded thus far from these funds.
Point of View
The Ministry of Defence's strategic use of capital outlay signifies a robust commitment to enhancing the capability of our Armed Forces. It reflects a proactive approach to national security while simultaneously bolstering domestic industries, fostering economic growth, and ensuring timely modernization of defense capabilities. The government's consistent allocation towards defense expenditure stands as a testament to its dedication to safeguarding the nation.
NationPress
13/10/2025
Frequently Asked Questions
What is the capital outlay utilized by the Ministry of Defence?
The Ministry of Defence has utilized over 50% of its capital outlay, amounting to Rs 92,211.44 crore by the end of September in FY26.
How does capital expenditure affect national security?
Capital expenditure is crucial for acquiring new assets, developing infrastructure, and enhancing the overall capabilities of the Armed Forces, directly impacting national security.
What percentage of capital outlay was allocated for FY26?
The total allocation for FY26 under the capital head is Rs 1,80,000 crore.
What sectors received the majority of the capital expenditure?
The majority of capital expenditure has been directed towards aircraft and aero engines, along with land systems and electronic warfare equipment.
What measures is the Ministry of Defence taking regarding domestic industries?
Since FY 2020-21, the Ministry has been consistently earmarking funds for procurement from domestic industries, supporting local businesses and enhancing national defense capabilities.
