Indian Govt imposes five per cent cut in defense budget
IRNA - Islamic Republic News Agency
New Delhi, Jan 3, IRNA -- The government of India has imposed around five per cent cut in the Rs 1.93 lakh crore defense budget in view of the economic slowdown following which key deals like procurement of 126 multi-role combat aircraft are likely to be pushed to the next fiscal.
The Ministry of Finance recently conveyed to the Defence Ministry that there would be a cut of around Rs 10,000 crore in the Rs 1.93 lakh crore allocated for the defence sector, pti reported quoting ministry officials as saying here.
After the cut, several key acquisition plans of the three forces including the procurement of the combat aircraft for IAF, 197 light helicopters for army and IAF are expected to be pushed for the next fiscal, they said.
Defence Minister A K Antony had given indications in this regard recently when he said that his Ministry would be struggling to get even the allocated amount.
'I am struggling to get the budgetary amount,' he had said when asked if he was hopeful of getting the additional Rs 40,000 crore sought by his ministry for modernisation of the three services.
In view of the cost-cutting measures, defence forces have been asked by the ministry to concentrate on prioritizing their procurements.
Under the Rs 1.93 lakh crore budget, Rs 1,13,829 crore is for revenue expenditure including salaries and pensions and Rs 79,579 crore was allocated for modernising the Armed Forces by acquiring new assets.
Islamic Republic News Agency/IRNA NewsCode: 1044238
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