Indian Ministry of Defence, NEW DELHI: The allocation for Defence has been pegged at Rs 83000 crore for the year 2005-06, which amounts to an increase of Rs 6000 crore or 7.79 per cent over the allocation for the current year. This was announced in the General Budget presented in Parliament today.
Out of Rs. 83000 crores, the provision for revenue expenditure is Rs. 48624.86 crore which is adequate to take care of the normal growth in Pay and Allowances, inflation and other specific requirements of the Defence Services.
The allocation for Capital is Rs. 34375.14 crore. After meeting the fund requirements for works and commitments for an ongoing Capital acquisition projects, the allocation for Capital will be able to provide for over Rs 7000 crore for new modernisation schemes of the Defence Services.
The proposed Capital outlay for 2005-06 also includes Rs 1364 crore for Married Accommodation Project.
The Capital outlay for Research & Development has also been considerably increased from Rs 1657.78 crore in Budget Estimates 2004-05 to Rs 2541.86 crore in Budget Estimates 2005-06.
The Revised Estimates for 2004-05 for Defence Budget have been kept at the same level of Rs 77000 crore as in Budget Estimates 2004-05.
