The Budget has proposed a 9 per cent increase in the funds being made available to the Armed Forces.
The Finance Minister, Mr Pranab Mukherjee, said that a provision of Rs 1.64,415 crore has been made for the defence services which includes Rs 69,199 crore for capital expenditure. “Needless to say, any further requirement for the country's defence would be met,” the Finance Minister said.
The capital outlay on defence services has been stepped up nearly 14 per cent to Rs 69,199 crore, while defence pensions are pegged at around Rs 34,000 crore.