Union Budget 2026-27: Intelligence Bureau Gets Historic Funding Boost as India Reinforces Internal Security

The Union Budget 2026-27 has placed intelligence and internal security at the heart of India’s national security strategy, with the Intelligence Bureau (IB) receiving one of the largest funding increases in its history. The domestic intelligence agency has been allocated ₹6,782.43 crore, marking a sharp rise of around 74 percent over the previous year’s budget estimate. The increase reflects the government’s heightened focus on intelligence-led security operations amid rising internal and cross-border security challenges.

Senior officials have indicated that the enhanced allocation is intended to significantly strengthen India’s intelligence infrastructure, improve surveillance capabilities, and modernise operational systems. The funding hike signals a strategic shift toward proactive threat detection and real-time intelligence gathering as key pillars of internal security.

The allocation aims to bolster infrastructure and enhance national security capabilities, with other paramilitary forces also receiving increased budgets. (Sansad TV) | Hindustan Times

Capital Expenditure Surge Signals Major Modernisation Drive

A defining feature of this year’s allocation is the dramatic increase in capital expenditure for the Intelligence Bureau. Capital outlay has surged from ₹230.76 crore in 2025-26 to ₹2,549.54 crore in 2026-27. This sharp rise points to a large-scale modernisation programme covering intelligence infrastructure, advanced surveillance technologies, secure data systems, and upgraded operational facilities.

The focus on capital investment suggests long-term capacity building rather than short-term operational spending. Officials familiar with the budget process have noted that the funds are expected to support next-generation intelligence platforms, encrypted communication systems, and expanded technical surveillance, enabling the agency to better track terror networks, radicalisation patterns, and organised criminal activity.

Security Incidents Drive Intelligence-Led Policy Shift

The expanded funding comes against the backdrop of serious security incidents over the past year, including the terror attack near Delhi’s Red Fort and the deadly attack in Pahalgam, Jammu and Kashmir. These events exposed evolving threat patterns, including cross-border infiltration, local radicalisation, and the use of domestically sourced explosives.

Intelligence agencies have also played a critical role in recent counter-insurgency operations, including major actions against Maoist leadership. These operational successes have strengthened the government’s resolve to further empower intelligence agencies with advanced tools and infrastructure. The increased allocation reflects a recognition that timely and accurate intelligence is central to preventing attacks and neutralising emerging threats.

Home Ministry Budget Expansion Reflects Broader Security Priorities

The Ministry of Home Affairs (MHA) has received an overall allocation of approximately ₹2.55 lakh crore for 2026-27, representing a significant year-on-year increase. A portion of this rise is linked to preparations for the long-delayed national Census, scheduled to begin in phases from April. However, the budget also clearly reflects a broader focus on internal security, border management, and police modernisation.

Central armed police forces have seen enhanced allocations as part of this wider security push. The Central Reserve Police Force (CRPF), which plays a major role in counter-insurgency and internal security operations, has received over ₹38,500 crore. The Indo-Tibetan Border Police (ITBP), responsible for guarding the India-China border, has also seen a notable rise in funding to support high-altitude operations, mobility, and surveillance infrastructure.

Border Security, Surveillance, and Forensic Capacity Strengthened

In addition to intelligence funding, the budget provides increased support for border management and high-tech surveillance systems. Resources have been directed toward strengthening fencing, observation systems, and electronic monitoring along sensitive borders, particularly with Pakistan and Bangladesh. These measures are aimed at countering infiltration, smuggling, and cross-border terror movement.

The budget also increases funding for forensic sciences and investigative modernisation. Investments in digital forensics, upgraded laboratories, and national forensic infrastructure are intended to support the implementation of new criminal laws and improve investigative quality. This reflects a broader shift toward technology-driven policing and evidence-based prosecutions.

The MGMM Outlook

The Union Budget 2026-27 signals a decisive elevation of intelligence as a central pillar of India’s internal security framework, with the Intelligence Bureau receiving a historic funding increase. The sharp rise in allocation reflects a strategic emphasis on intelligence-led operations to address evolving internal and cross-border threats. Enhanced funding is aimed at strengthening surveillance, modernising systems, and enabling real-time intelligence gathering, underscoring a shift toward proactive threat detection rather than reactive response. This move positions intelligence capabilities as a critical driver of national security preparedness amid changing terror, radicalisation, and organised crime patterns.

The surge in capital expenditure highlights a long-term modernisation push, with significant investments planned for advanced surveillance technologies, secure communication networks, and upgraded infrastructure. Alongside this, expanded allocations to the Ministry of Home Affairs, central armed police forces, border management, and forensic capabilities point to a broader, technology-driven security strategy. Strengthened border surveillance, digital forensics, and investigative infrastructure reflect an integrated approach that links intelligence, enforcement, and evidence-based policing, reinforcing India’s capacity to prevent, detect, and neutralise complex security threats at multiple levels.

(Sources: Hindustan Times, Indian Express, Economic Times)