Major addition to FY26 defence outlay unlikely despite Operation Sindoor

India’s strategic requirements remain paramount, no substantial additional demand is expected on the defence budget due to the current operation.

The Centre does not anticipate a significant hike in defence allocations for the financial year 2025-26 despite the recent Operation Sindoor, stating that sufficient provisions have already been made in the Union Budget, according to government sources.

“The Budget provided the defence budget in adequate measure. For contingency purposes, emergency purchasing powers have been given. The mechanism is already in place as a matter of routine,” sources said on May 23. Officials also said that while India’s strategic requirements remain paramount, no substantial additional demand is expected on the defence budget due to the current operation.

Operation Sindoor, launched in response to the Pahalgam terror attack, was followed by an escalating in tensions on the western border, leading to the speculation over higher defence spending in the near term. However, officials indicated that the armed forces already have access to delegated financial powers to ensure quick procurement in emergencies, which reduces the need for additional mid-year budgetary allocations.

The statement comes as the Centre reported a fiscal deficit of 4.8 percent of gross domestic product (GDP) for FY25. The government has been closely monitoring its expenditure commitments across sectors to maintain fiscal consolidation targets even as geopolitical and security challenges evolve. The Budget has targeted 4.4% fiscal deficit for FY26.