A parliamentary committee has called for enhanced capital expenditure on defence, emphasising the need for modernisation and credible military deterrence in response to evolving global threats, following the recent surge in defence allocations for 2026-27.
A parliamentary committee has urged the government to step up capital spending on defence, saying the present geopolitical climate demands stronger backing for modernisation and a level of military readiness that can sustain “credible war deterrence at all times”.
The Standing Committee on Defence made the recommendation in its report on the Ministry of Defence’s action taken notes for 2026-27, which was tabled in Parliament on Friday. The committee said capital spending is the part of the defence budget that funds new platforms, technologies and weapons, and argued that this outlay must keep pace with shifting threats, operational demands and rapid technological change. It said the ministry had assured members that the funds would be used for modernisation and infrastructure, while also noting that additional money could be sought later through supplementary grants or revised estimates if needed.
The committee’s comments come after the Union Budget for 2026-27 raised defence spending sharply. According to budget documents and subsequent analysis by defence specialists, total allocation for the sector was lifted to about ₹7.85 lakh crore, with capital outlay rising to roughly ₹2.19 lakh crore. LiveMint reported that the capital allocation was increased by 18% to nearly ₹2.2 trillion, as the government sought to strengthen military assets and push domestic defence manufacturing. The Institute for Defence Studies and Analyses said the budget reinforced priorities such as indigenous procurement, domestic capability building and operational readiness.
The panel also pressed for a more disciplined procurement process, warning that delays can leave equipment obsolete before it reaches the forces. It said transparency and accountability should not be compromised and urged all stakeholders, including the ministry, public sector defence units, the armed forces and private firms, to work to clear timelines. The committee also reiterated its earlier view that the Ministry of Defence should take up the issue of income tax exemption on disability pension with the Ministry of Finance, saying the concerns of disabled ex-servicemen should be addressed properly.
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