Previously, the Indian government, engaged in a massive programme to upgrade the country’s ageing military hardware, increased defence spending to Rs1.93 trillion rupees ($40 billion) for the financial year that ended in March 31, 2013. PHOTO: AFP/FILE
India’s embattled government, beset with an intimidating array of domestic challenges, raised the defence budget by 10 per cent for the fiscal year 2013-14.
In a speech trumpeting his government’s record on Monday, Finance Minister P Chidambaram announced that the defence budget was being raised to a staggering Rs2.24 trillion — with about Rs8.9 billion set aside for acquisitions by the armed forces and Rs1.34 trillion earmarked for payment of salaries and pensions and other expenses.
While revealing details of the interim budget, Chidambaram announced a package of cuts in indirect taxes in the budget for the next financial year starting April 1.
In comparison, Pakistan jacked up its defence spending by 15 per cent for the current fiscal year, raising it to Rs627.2 billion from a previous Rs545.3 billion, citing the ongoing war on terrorism.
Previously, the Indian government, engaged in a massive programme to upgrade the country’s ageing military hardware, increased defence spending to Rs1.93 trillion rupees ($40 billion) for the financial year that ended in March 31, 2013.
However, a potentially more costly-feature of the budget increase was the acceptance in principle of One Rank One Pension (OROP) – allowing three million veteran soldiers of the same rank and length of service to receive the same pension, regardless of their retirement year.
According to analysts, the budget was an interim exercise ahead of the election due by May which the government looks sets to lose. Members of the ruling Congress-led government will be asked to approve only the period until the new administration takes charge.
The Indian finance minister also boasted that he had slashed the fiscal deficit lower than the target, while unveiling a pre-election budget that political opponents said contained unrealistic calculations.
With additional input from the wires
Published in The Express Tribune, February 18th, 2014.
COMMENTS (13)
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India raised its defense budget by 10%.
Pakistan raised its defense budge by 15%.
But India is "appeasing the military" ?? Pakistani-logic.
I for one think that India doesn't need an increase as Pakistan in going to imlpode shortly.
about hunger and poverty for all poor and hunger people according to you we got FOOD SECURITY BILL which you cant imagine what is it check on wikipedia as you are immature trying to show up without proper knowledge it says "biggest ever experiment in the world for distributing highly subsidized food by any government through a ‘rights based’ approach.The stated expenditure of Rs 1,20,000 crore annually in NFSB This is India dont irritate me now by posting comments which only class 2 people can like
@Ayesha: Afraid of your coward military ? No way! It actually Pakistan who is afraid of Indian forces and send their terrorists across the border.
@Ayesha: failed state citizen alert.... also an imposter....wanna be female....LOL
@Ayesha: Wow, see who is talking here.
@Ayesha If you could eat grass to make Nukes, may be we can survive on piece of a dry bread. am i wrong miss?
@Ayesha: We are not like your country at least we are not talking to killers of our citizens and forces at least we can safe guard our country care about your failed state then talk about India
Very positive step by India. Three Cheers!!!
India do not enough money to feed its peoples, but always keep increasing the defense budget. Afraid of neighbor?