Defence gets 35 % hike in budget, steepest in recent years

New Delhi, Feb 16 (PTI) Realising the need to gear up the
security apparatus in the wake of Mumbai attacks, the Indian
government Monday allocated Rs 1,41,703 crore for defence, an
almost 35 percent rise over the previous fiscal in one of the
steepest hikes in recent years.

The increase, amounting to Rs 36,103 crore over last
year's allocation of Rs 1,05,600 crore, is apparently intended
to fund the fast-track procurement of defence equipment to
plug the security gaps exposed by the November 26 attacks.

Presenting the interim budget for 2009-10 in the Lok
Sabha, India's Finance Minister Pranab Mukherjee said the
allocation was increased due to the prevailing security
environment which had "deteriorated considerably."

Noting that the Mumbai attacks had amounted to the
threshold being crossed on the security front, Mukherjee said,
"We are going through tough times. The Mumbai terror attacks
have given an entirely new dimension to cross-border
terrorism."

The nearly 35 percent hike is substantial, particularly
when compared with the increase of only 10 percent effected
in the last budget over Rs 96,000 crore allocated in 2007-08.

The government also revised the total expenditure for
defence for 2008-09 to Rs 1,14,600 crore, he said, pointing
out that an additional Rs 9,000 crore was provided for defence
expenditure during the fiscal.

Mukherjee said the increased Plan expenditure for Defence
this year would be Rs 86,879 crore, an increase of Rs 13,279
crore over last year's Rs 73,600 crore.

The increased Plan expenditure would include Rs 54,824
crore for capital expenditure as against Rs 41,000 crore in
the revised estimates for 2008-09, he said.

The Defence Ministry had returned nearly Rs 7,000 crore
as unspent money from its last year's capital outlay of Rs
48,007 crore as its plans to procure light utility helicopters
and 155mm guns did not fructify.

Mukherjee also said the government would provide for any
additional requirement for security of the nation.

The increased allocation for defence assumes significance
as the government had decided to fast track the acquisition
for the armed forces following the Mumbai attacks.

The defence forces have already prepared a long list of
equipment, mainly for its special forces' commandos who carry
out specialised strikes including anti-terror operations, to
be bought under the fast track process.

After the Mumbai attacks, the government also initiated a
massive revamp of the nation's security structure, which
includes creation of a Coastal Command.

It also approved the Coast Guard's request for purchase
of fast patrol craft for securing the long-winding 7,417-km
coastline.

India's Defence Minister A K Antony, South Block
officials said, welcomed the increased allocation for his
ministry in this year's budget.

Of the Rs 54,824 core capital expenditure allocated for
2009-10, Defence Ministry officials said about 95 percent
would be towards procurements for the Army, Navy, Air Force
and the Coast Guard and the rest 5 percent towards research
and production units.

Despite the hike this year, India's defence spending is
still at about 2 percent of the Gross Domestic Product (GDP),
compared to China's 7 percent and Pakistan's 5 percent. PTI
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