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New Delhi, July 7 The Union Budget 2009-10 has proposed a more than 34 per cent increase in the allocation of funds for the Defence forces.

The outlay has been pegged at Rs 1,41,703 crore in BE (budget estimate) 2009-10 as against Rs 1,05,600 crore in BE 2008-09.

The allocation includes Rs 58,648.10 crore for the Army while the Budget has proposed providing the Navy Rs 8,322.11 crore and the Air Force is to get Rs.14,318.18 crore.


The allocation for Research and Development has been pegged at Rs 4,757.67 crore. Ordnance Factories have been provided Rs 832.94 crore. The capital outlay on all the services for modernisation of the forces has been pegged at Rs 54,824 crore.

The Government’s decision to accept the report of the committee on one-rank-one-pay and substantially improve the pension of Defence pensioners will cost the exchequer Rs 2,100 crore annually, the Finance Minister, Mr Pranab Mukherjee said.

The Budget shows a non-Plan expenditure of Rs 54,824 crore as capital outlay for Defence services including Rs 17767.85 crore for the Army and Rs 604.37 crore by the Coast Guards for acquisition of ships and aircraft among others. “With the increase in the defence outlay by the government in the current budget, we envisage a great potential in terms of quality and the quantity spend.

This is a very encouraging sign for all the players in the sector and will be welcomed by all,” said the Managing Director (India and South Asia), Sikorsky Aircraft Corporation, Air Vice-Marshal Mr Arvind Jeet Singh Walia.

(This article was published in the Business Line print edition dated July 8, 2009)
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