Defence hiked 14 per cent over last year to Rs 412 billion
The Defence Budget for 1998-99 was today pegged at Rs 412 billion, 14 per cent more than the revised
estimates of Rs 360.99 billion for the previous year.
The allocation for defence was Rs 12 billion more than the Rs 400
billion proposed about 10 weeks ago in the
Interim Budget.
The allocation for defence is Rs 51.01 billion more than the revised estimates of Rs 360.99 billion for
1997-98.
Sinha described the defence allocation proposed by him as
''substantial'' and also assured that he would consider further
budgetary support for the sector during the course of the year, if
necessary.
The finance minister declared that there could be no compromise
in the country's defence preparedness.
The Budget estimates for defence for 1997-98 were
Rs 356.2 billion, including the provision to meet the obligations of
the Fifth Pay Commission.
In an obvious reference to the Pokhran nuclear explosions, the
finance minister said: "I am confident that the initial negative
responses will be moderated as our position gets better
understood and will not have any significant impact on our economic development."
Sinha also noted that the dimensions of the economic challenges that confront the country today had come into sharper
focus since the time the Interim Budget was presented.
In the interim budget, the allocation for defence was pegged
at Rs 400 billion.
The finance minister made it clear on India's part, its policies,
had to be clearly directed and firm.
He quoted Gurudev Rabindranath Tagore to say "you cannot cross
the sea by standing and staring at the water."
'We intend to cross the sea and I seek the co-operation of this
august House in this national endeavour in the weeks and months
ahead," he said.
Noting that the government had been in office just ten weeks, the
finance minister said: "But we already know that a new India is
rising.
"And as May 11 was surely the first step, today is yet another," he said.
"Certainly, a long journey lies ahead, but as history will
prove, we have now begun to build a new India. This will be a strong and prosperous India -- a nation self-reliant, a nation keen to deal with the world as an equal partner with other countries.
"As the saying goes, only the strong can be free. And only the
productive can be strong. This is the new India we propose to build," he said.
Budget '98
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