Defence budget pegged at Rs.89,000 cr, up by 7.2 percent
New Delhi | February 28, 2006 1:15:12 PM IST
India Tuesday announced an increase of 7.2 percent in its defence budget, allocating a whopping Rs.89,000 crore (Rs.890 billion, $20 billion) for the fiscal year 2006-07.
Of this, Rs.37,458 crore (Rs.374.6 billion) - or 42 percent of the total outlay - has been earmarked for new arms purchases.
Finance Minister P. Chidambaram told parliament he was increasing the allocation for defence from Rs.83,000 crore (Rs.830 billion) in the current fiscal in view of the enhanced expenditure on the modernisation of the armed forces.
India is in the market for a wide array of sophisticated hardware, including 126 combat jets and 80 helicopters, to modernise the ageing military arsenal, and some deals are expected to be finalised in the next fiscal.