India has announced a major rise in funding for the Intelligence Bureau (IB) in the Union Budget 2026-27. The internal intelligence agency has been given ₹6,782 crore, marking the highest budget allocation it has ever received. The decision reflects increasing attention toward strengthening domestic security systems and intelligence gathering across the country.
The financial boost comes alongside changes in funding distribution among various security-related projects under the Ministry of Home Affairs (MHA). While the Intelligence Bureau has received a large increase, the National Intelligence Grid (NATGRID), another key intelligence support system, has faced a significant budget reduction. The latest allocation highlights changing priorities in the government’s internal security strategy.
Intelligence Bureau Allocation Sees Massive Jump
The Intelligence Bureau, which works under the Ministry of Home Affairs, is responsible for collecting intelligence related to internal security threats. In the Union Budget 2026-27, the agency has been allocated ₹6,782 crore. This represents a sharp increase of around 63 percent compared to the revised estimate of ₹4,159 crore for the previous financial year.
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The increase amounts to an additional ₹2,623 crore. The higher allocation is seen as an effort to strengthen the country’s ability to identify and prevent internal threats, including terrorism, organised crime, and other security risks. The IB plays an important role in gathering information, monitoring suspicious activities, and supporting law enforcement agencies.
One of the most noticeable changes in the new allocation is the large rise in capital expenditure. Capital expenditure refers to long-term investments such as technology, infrastructure, and equipment. The Intelligence Bureau’s capital expenditure has increased almost ten times, rising from ₹257 crore in the previous fiscal year to ₹2,549 crore.
This increase is expected to support the purchase of advanced surveillance technologies and modern monitoring equipment. The funding will also help improve data analytics infrastructure, which allows intelligence agencies to process and analyse large volumes of information quickly. These systems help identify patterns and warning signs linked to security threats.
The increased spending on modern equipment is aimed at improving field operations and strengthening communication networks used by intelligence officials. With the growing use of digital platforms and technology by criminal and terrorist groups, the Intelligence Bureau requires upgraded tools to monitor online activities and communication channels. The allocation supports efforts to improve proactive threat detection and counter-terrorism measures.
NATGRID Budget Faces 27 Percent Reduction
While the Intelligence Bureau has received record funding, the National Intelligence Grid has experienced a budget cut of approximately 27 percent. NATGRID is a major data-sharing platform designed to connect databases from different government departments. It helps intelligence and law enforcement agencies access important information quickly during investigations.
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NATGRID integrates data related to banking, travel, immigration, and communication records. The system allows authorised agencies to analyse this information to track suspicious activities and identify possible threats. The platform is considered a key support tool in intelligence operations.
The reduction in NATGRID’s funding suggests a shift in how resources are being distributed within the internal security framework. Although the system remains operational and continues to support intelligence coordination, the budget cut indicates that more focus is currently being placed on strengthening direct intelligence gathering agencies such as the Intelligence Bureau.
The redistribution of funds does not remove NATGRID from the security network. Instead, it reflects changing priorities in spending as the government adjusts its approach to handling internal security challenges.
Ministry of Home Affairs Budget Records Overall Growth
The increased allocation for the Intelligence Bureau forms part of a broader rise in spending under the Ministry of Home Affairs. The ministry’s overall budget has increased by 9.44 percent in the Union Budget 2026-27. The Ministry of Home Affairs manages several important areas, including border management, police modernisation, disaster management, and counter-terrorism operations.
The higher budget is intended to strengthen security infrastructure across different sectors. Border infrastructure projects continue to receive funding to improve monitoring and surveillance in sensitive areas. Police modernisation programmes are also being supported through investments in advanced equipment, improved training systems, and digital tools used by law enforcement agencies.
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The budget allocation reflects the growing importance of technology in maintaining internal security. Investments in surveillance systems, intelligence networks, and data analytics infrastructure are aimed at improving coordination between different agencies under the Ministry of Home Affairs.
The distribution of funds between the Intelligence Bureau and NATGRID highlights how internal security strategies are being adjusted. The Union Budget 2026-27 places strong emphasis on enhancing operational intelligence capabilities, strengthening surveillance technology, and supporting coordinated security operations across the country.
