New Delhi: A cost of Rs 2.95 lakh crore was on Thursday set aside for the defence budget for the next fiscal which is an increase of 7.81 per cent over last year’s Rs 2.74 lakh crore.
Out of the total allocation, the capital outlay for the three defence services for the purchase of new weapons, aircraft, warships and other military hardware has been pegged at Rs 99,947 crore.
The outlay for defence budget amounted to 12.10 per cent of the total budget of Rs 24,42,213 crore for 2018-19.
In his budget speech, Finance Minister Arun Jaitley appreciated the role played by the armed forces in meeting challenges on the country’s borders as well as in managing the internal security environment, both in Jammu and Kashmir and the Northeast.
He said the government will develop two defence industrial production corridors and bring out an industry friendly military production policy to promote the domestic defence industry.
A separate amount of Rs 1,08,853 crore has been set aside over the above the total allocation for the paying pension to defence personnel.
The amount for defence pension is an increase of 26.60 per cent over the allocation of Rs 85,740 crore last year.
He said a number of initiatives had been taken to develop and nurture India’s intrinsic defence production capability to make the nation self-reliant on its defence needs.
The minister said private investment in defence production had been opened up, including liberalising foreign direct investment.