The primary responsibilities of the Ministry of Home Affairs are ensuring internal security, administering the central police and paramilitary forces, border management, Union Territory (UT) administration, disaster management, and coordination with states.[i] Article 355 of the Constitution obligates the Union Government to protect every state against external aggression and internal disturbance.[ii] The Ministry provides manpower, financial support, guidance, and expertise to state governments to help maintain peace and security.1 The Ministry also makes transfers to UTs (as they do not receive a share in central taxes), and directly administers UTs that do not have a legislature of their own
This note analyses the expenditure trends and budget proposals for the Ministry of Home Affairs for 2025-26, and discusses issues across certain major sectors under the administration of the Ministry.
Overview of Finances
In 2025-26, the Ministry of Home Affairs (MHA) has been allocated Rs 2,33,211 crore (Figure 1). This is a 6% increase over the revised estimates for 2024-25 (Rs 2,20,371 crore). The budget for the Ministry constitutes 5% of the total expenditure budget of the union government in 2025-26, and is the fourth highest allocation across ministries. Since 2019, the expenditure of the Ministry also includes grants to the UTs of Jammu and Kashmir (J&K), and Ladakh.
Figure 1: Allocation towards the MHA has increased with time, but at slower rates
Note: Revised estimate taken for 2024-25 and budget estimate for 2025-26.
Source: Union Budgets of various years; PRS.
The expenditure of the Ministry has been higher than the budgeted expenditure in all years since 2015-16 (Figure 2). The exception was 2020-21, when the actual expenditure was 14% lower than the allocation. This was due to the COVID-19 pandemic, which led to a shift in expenditure priorities.[iii] Actual expenditure was 0.4% higher than budget estimates in 2023-24.
Figure 2: Fund utilisation has exceeded budget allocation in almost all years
Note: Revised estimate taken as actual for 2024-25.
Source: Union Budgets of various years; PRS.
In 2025-26, 69% of the Ministry’s expenditure is estimated to be on police, 29% on grants to UTs, and 2% on other items such as disaster management, rehabilitation of refugees and migrants, and conducting the Census (Table 1).
Table 1: 69% of the Ministry’s expenditure in 2025-26 will be towards police (in Rs crore)
|
Major Head |
2023-24 Actuals |
2024-25 RE |
2025-26 BE |
% Change 2024-25 RE to 2025-26 BE |
|
Police |
1,24,715 |
1,46,833 |
1,60,391 |
9% |
|
UTs |
66,044 |
66,580 |
67,238 |
1% |
|
Others |
6,113 |
6,959 |
5,581 |
-20% |
|
Total |
1,96,871 |
2,20,371 |
2,33,211 |
6% |
Note: BE – Budget Estimates, RE – Revised Estimates. Expenditure under ‘Others’ includes disaster management, cabinet, and administrative matters.
Source: Union Budget 2025-26; PRS.
Grants and loans to UTs: In 2025-26, Rs 67,238 crore has been allocated as grants and loans for the administration of UTs. This is 1% higher than the revised estimates for 2024-25 (Rs 66,580 crore). The allocation to the UTs of J&K, and Ladakh (both formed after the reorganisation of the former state of J&K in 2019) is 68% of the total amount allocated to all UTs. These grants do not include police expenditure for Delhi and J&K police.
Other items: Other expenditure items of the Ministry include disaster management, rehabilitation of refugees and migrants, and administrative matters. In 2025-26, these items have been allocated Rs 5,581 crore, 20% less than the revised estimates for 2024-25 (Rs 6,959 crore). Rs 575 crore has been allocated to the Registrar General of India (responsible for the census) in 2025-26. Expenditure on the census has been less than the budget estimate in 2023-24, and 2024-25 (as per revised estimates; see page 12). Transfers to home guards are also estimated to decrease from Rs 566 crore in 2024-25 (revised estimates) to Rs 30 crore in 2025-26.