Significant Reduction in Funding for Intelligence Units in Nirmala Sitharaman’s 2025 Budget
The Union Budget 2025-26 and Intelligence Funding Cuts
In a surprising move, the Union Budget 2025-26 has seen a reduction in funding for various intelligence-gathering and security agencies. This includes a significant decrease in funds allocated to the National Security Council Secretariat (NSCS), the Intelligence Bureau, the National Intelligence Grid (NATGRID), and the Special Protection Group (SPG). These cuts have raised concerns about the impact on India’s intelligence capabilities and national security.
Reduced Funding for NSCS and Intelligence Bureau
According to the Notes on Demand for Grants (2025-26), the allocation for the NSCS has been reduced from Rs 270.08 crore (revised estimate) in the previous financial year to Rs 182.75 crore in the current year. Similarly, the Intelligence Bureau has seen a cut of around Rs 100 crore, with its budget reduced from Rs 3,966 crore to Rs 3,893 crore.
A senior officer, speaking on condition of anonymity, explained that the reduction in funding suggests a decrease in the number of personnel working in these intelligence agencies. The decrease in revenue heads indicates a shift towards building a new setup, impacting salaries, pensions, and other expenses of intelligence personnel.
Allocation Details and Concerns
Out of the Rs 182.75 crore allocated to NSCS, Rs 127.51 crore is under the revenue head, indicating a focus on operational expenses. Similarly, for the Intelligence Bureau, Rs 3,662 crore out of the total Rs 3,893 crore has been allocated under the revenue head, highlighting a similar trend.
The allocation for capital expenditure in the Intelligence Bureau has also seen a decrease, with only Rs 230 crore earmarked for this purpose. This is a significant reduction from the previous year, raising questions about the agency’s ability to invest in infrastructure and technology upgrades.
Impact on NATGRID and SPG
The NATGRID, a critical intelligence arm providing support to counter security threats, has also faced budget cuts. The allocation for NATGRID has been slashed from Rs 247.72 crore to Rs 158.23 crore, a 36% reduction that could impact its operations and effectiveness.
Funds for the SPG, responsible for the Prime Minister’s security, have also been reduced. With Rs 489 crore allocated this year, down from Rs 510.97 crore in the previous year, there are concerns about the impact on the elite force’s capabilities and resources.
Concerns and Future Implications
The reduction in funding for these intelligence agencies and security forces raises concerns about the government’s priorities and the potential impact on national security. With ongoing security challenges and threats, it is essential to ensure that these agencies have the resources and support they need to carry out their critical functions effectively.
As the budget allocation for intelligence and security agencies continues to be a topic of discussion, stakeholders and experts are closely monitoring the situation to assess the implications of these funding cuts on India’s overall security posture.