The Union budget increased the outlay for the defence sector by 3.98 per cent with a total allocation of Rs. 1,47,344 crore as against the previous allocation of Rs. 1,41, 703 crore.
However, the outlay represents a 8.13 per cent growth over the revised estimates of Rs.1,36,264 crore for the current fiscal.
Of the total outlay for 2010-11, an allocation of Rs.87,344 crore has been made for revenue expenditure, a growth of 0.54 per cent over the revenue allocation in the budget estimates of the current financial year.
“Secure borders and security of life and property fosters development…needless to say, any additional requirement for the security of the nation will be provided for,” Finance Minister Pranab Mukherjee said in his budget speech.
The budget estimates for 2009-10 included the allocation for defraying expenditure on payment of 60 per cent arrears of pay and allowances, which had been increased on the basis of the recommendations of the 6th Pay Commission.
Of the three services, the manpower-intensive Army gets the major share of the allocation at Rs.58,995.19 crore, the Navy Rs.9,455.03 crore and the Indian Air Force Rs.15,803.65 crore.
Significantly, the government earmarked Rs.60,000 crore for capital expenditure against the previous allocation of Rs.54,824 crore, of which Rs.7,000 crore was returned unspent.
The capital expenditure which includes funds spent for modernisation represents a growth of 9.44 per cent over 2009-10 budget allocation.
An increased allocation of nearly 25 per cent from revised estimates includes the big ticket deals in the pipeline.
These include the IAF’s 126 Medium Multi Role Combat Aircraft, medium-lift helicopters, basic jet trainers, armed choppers, the Navy’s aircraft carrier and other naval fleet acquisition programme and the Army’s quest to procure the ultra light howitzers.
Of the major heads that could not be spent include Rs.1,782 crore for construction, Rs. 1,969 crore for aircraft and aero-engines and Rs.34,00 crore for other equipment.
In line with the government policy, the allocation for the Defence Research Development Organisation witnessed an increase of Rs.881 crore from the revised estimate of Rs.5,260.42 crore.
