Big Budget Cut for Intelligence Agencies in Union Budget 2025
The Union Budget 2025-26 has made some drastic changes to the allocations to key intelligence agencies, which is bound to have an impact on the various intelligence collection and dissemination verticals. The most hit will be the National Security Council Secretariat, the apex body that oversees both internal and external security matters.
As per the Notes on Demand for Grants (2025-26), the NSCS has been granted Rs 182.75 crore, which is sharply lower than the revised estimate for last year of Rs 270.08 crore. The Intelligence Bureau (IB) too, has seen a reduction of about Rs 100 crore. While the revised allocation for IB was Rs 3,966 crore in the previous fiscal year, the new budget has brought it down to Rs 3,893 crore.
According to a senior official, who spoke only on condition of anonymity, the decline in funds may indicate downsizing of personnel in these agencies. "Revenues decline in salaries, pensions and operational expenses related to intelligence people. This could mean workforce reduction", the official explained.
The official added that even though revenue allocations have declined, capital outlay may be taken to imply the development of new infrastructure or some technological setup for intelligence operations. However, details on the same are not known.
Cuts come at the time when there are still lots of national security challenges both at home and in the international environment. The services of intelligence play a critical role in counter terrorism, border security, and cyber intelligence. These cuts will spark questions on their impact on operational activities that will be ongoing in the near term and whether agencies are prepared enough to respond to emerging threats.
While the government has not cited an official reason for the budgetary cut, experts say that reallocation of funds to other defense and security initiatives could be a possible factor. The move also aligns with the Centre's broader fiscal strategy to optimize spending and invest in technological advancements.
With a lower budget allocation, intelligence agencies may need to recalibrate their operational strategies to maintain efficiency while adapting to financial constraints. The coming months will reveal how these reductions influence India's intelligence and security framework.
