Archive · 2 Feb 2026
India's 2026-27 Budget: Defence and Debt
The Indian government has announced its budget for 2026-27.
They have given a lot of money to different countries and projects.
Bhutan got the most money, followed by Nepal.
They also increased the defence budget by 15% to make the army stronger.
The government will borrow a lot of money to pay for these things.
They plan to reduce their debt compared to the size of the economy.
The budget also includes money for weather forecasting and ocean exploration.
The government wants to spend money wisely and keep the economy growing.
India allocated Rs 22,118 crore to the Ministry of External Affairs for 2026-27.
Bhutan received the largest share of Rs 2,288 crore, followed by Nepal with Rs 800 crore.
The defence budget increased by 15% to ₹7.84 lakh crore for FY27.
The government plans to reduce the debt-to-GDP ratio to 55.6% in 2026-27.
Gross market borrowing is budgeted at ₹17.2 lakh crore for FY27.
- Who
- Indian Government
- What
- Allocation of funds in the Union Budget 2026-27
- When
- Budget for 2026-27
- Where
- India
- Why
- To support development aid, defence capabilities, and fiscal management
- Total MEA Allocation
- Rs 22,118 crore
- Bhutan's Share
- Rs 2,288 crore
- Nepal's Share
- Rs 800 crore
- Maldives' Share
- Rs 550 crore
- Mauritius' Share
- Rs 550 crore
- Bangladesh's Share
- Rs 60 crore
- Afghanistan's Share
- Rs 150 crore
- Sri Lanka's Share
- Rs 400 crore
- Myanmar's Share
- Rs 300 crore
- Latin America's Share
- Rs 120 crore
- Mission Mausam Allocation
- Rs 1,342 crore
- Deep Ocean Mission Allocation
- Rs 625 crore
- Defence Budget Increase
- 15%
- Total Defence Outlay
- ₹7.84 lakh crore
- Capital Expenditure
- ₹2.19 lakh crore
- Revenue Expenditure
- ₹5.54 lakh crore
- Gross Market Borrowing
- ₹17.2 lakh crore
- Debt-to-GDP Ratio Target
- 55.6%
- Fiscal Deficit Target
- 4.3% of GDP
Sources
Budget 2026: Rs 7,000 crore overseas allocation; Bhutan, Nepal lead, no funds for Chabahar Port
Budget 2026: India’s Rs 22,118 cr diplomatic map; Why Bhutan has been allocated largest share among other countries
Budget 2026 ups allocation to Mission Mausam
Union Budget 2026: National Green Hydrogen Mission allocation maintained at ₹600 crore for FY27
In new debt-to-GDP era, FY27 target set at 55.6%
Defence outlay increases by 22%, but stocks fall
RBI will have to lend a hand to support the government’s large borrowing
Defence budget up by unprecedented 15% at ₹7.84 lakh crore
‘Landmark push for world-class infra’: Space scientists hail Budget focus on telescope facilities
Union Budget 2026: Centre to set up 2 large telescopes, upgrade an existing one in Ladakh
