Pallam Raju expects raise in defence budget
September 4th, 2008 | by admin |Rating: 0
With modernisation of army, navy and air force on top priority, the Defence Ministry on Friday said it expects an increase in this year抯 defence budget to meet the requirements of the armed forces.
揟he defence budget is likely to be increased so that it meets the requirements of our forces,?Minister of State for Defence M M Pallam Raju said on the sidelines of a seminar in New Delhi.
Asked about whether the ministry will have to surrender any funds from last year抯 budget at the end of the fiscal, he said it was trying to fully utilise the fund.
揕ast year we had to surrender nearly Rs 3,000 crore.
This year we are putting our effort not to surrender any amount,?he said.
As per the Fiscal Responsibility and Budget Management Act, unspent money goes back to the Finance Ministry after March 31 if a ministry fails to spend it within the fiscal.
Last year抯 defence budget was Rs 96,000 crore. For the year 2006-07, the revised estimates for the defence budget were Rs 86,000 crore.
As per the modernisation drive of the three services, various big ticket defence acquisitions are in the pipeline, including the USD 10 billion project to acquire 126 multi-role combat fighters. The government will soon float a global tender to acquire 317 multi-role light helicopters for army and Air Force.
The Indian Air Force is planning to induct two more squadrons of attack gunships, capable of operating in high altitudes, and six heavy lift choppers.
Army has already floated new global tenders to acquire much needed 325 artillery guns in a deal that could run into Rs 5,500 crore (USD 1.375 billion).
