The 10-year scheme will see electrical wiring replaced, as well as water pipes and the heating system, which were installed in the aftermath of the Second World War.
The overhaul will also help to significantly improve visitor access, especially to schools, to help open up the Palace and its treasures even further to the public.
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The phased programme will be sequenced wing-by-wing to enable the Palace to remain occupied and fully operational, and allow the Queen to carry on with her official duties.
Chief Secretary to the Treasury, David Gauke, said: "We must ensure that the special architectural and historic nature of some of our greatest buildings are protected for future generations, therefore it is only right we ensure Buckingham Palace is fit for purpose.
"These urgent works have been properly costed and will ensure the Palace can continue its centuries-long tradition of being the working house of our Monarch. We will ensure every penny spent achieves the greatest value for money."
(LM/CD)
