The Centre has increased the budgetary allocation for the Intelligence Bureau, the country's internal spy agency, from ₹4,159 crore in the budget last year to ₹6,782 crore in 2026-27.

The bureau, which handles security challenges from terrorism, internal and cyber threats, had come under flak over its alleged intelligence failure before the Pahalgam and Red Fort terror attacks last year.

Out of the total ₹6,782 crore, a large chunk of ₹2,549 crore has been allocated as capital expenditure, a record hike from the ₹257 crore in the revised allocation under the same category last year.

Sources said the unprecedented allocation in capital expenditure was aimed at improving surveillance systems, cyber intelligence capabilities and technology infrastructure. The allocation for the IB is to meet administrative expenses, including collecting and analysing information on internal threats, terrorist activities, and security risks.

The home ministry has seen an increase of 9 per cent in the total allocation in the 2026-27 budget. The IB and the central armed police forces report to the home ministry.