This Article is From Feb 28, 2013

Union Budget 2013: Government increases defence spending to Rs 2.03 lakh crore

Union Budget 2013: Government increases defence spending to Rs 2.03 lakh crore

The government has upped its allocation for defence expenditure to Rs 2.03 lakh crore for the financial year 2013-14, effectively negating the intense speculation that the stuttering growth of the Indian economy could have a cascading effect on the country's military.

Of the total defence outlay for 2013-14, Finance Minister P Chidambaram said Rs.86,741 crore will be capital expenditure.

"The Minister for Defence has been most understanding, and I assure him and the House that constraints will
not come in the way of providing any additional requirement for the security of the nation," Mr Chidambaram said in his Budget speech.

Earlier this month, Defence Minister AK Antony told reporters at the recently concluded Aero India show in Bengaluru, "India is not an island. The world economy is going through a tough time, we will have to cut down."  

Mr Antony said that the government is drastically cutting down on expenditure across the board and "budget cuts fall on our department too." He said that there will be no cuts in "priority areas" and the "operational preparedness" of the military will not be affected.

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With inputs from agencies