Considering the changed security scenario in view of the Mumbai terror attacks, the government on Monday allocated Rs 1,41,703 crore (Rs 1417.03 billion) for the defence sector, almost a
35 per cent increase from the previous year's budget provisions.
Last year's allocation for Defence stood at Rs 1,05,600 crore (Rs 1056 billion) and the current increase amounted to Rs 36,103 crore (Rs 361.03 billion).
Presenting the Interim Budget for 2009-10 in the Lok Sabha, Finance Minister Pranab Mukherjee said the allocation has been increased because of the prevailing security environment, which has "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."
With the total revised expenditure for Defence last year standing at Rs 1,14,600 crore (Rs 1146 billion), he said the increased Plan expenditure for Defence this year would be Rs 86,879 crore (Rs 868.79 billion).
Last year's Plan expenditure was only Rs 73,600 crore, thereby providing an increase of Rs 13,279 crore (Rs 132.79 billion) this year.
Image: An Indian Army's T-72 tank takes part in a joint amphibious warfare exercise by the Indian armed forces at Madhavpur beach along the Arabian Sea. | Photograph: Amit Dave/Reuters
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