Budget 2014: Defence sector allocated Rs 2.29 lakh cr, FDI cap hiked to 49%

New Delhi: As part of military modernisation drive, government today allocated Rs 2.29 lakh crore for the Defence Ministry in the Budget, marking an increase of around 12.5 percent from the last fiscal as it raised the FDI limit in the defence sector up to 49 percent from 26 percent now. The Ministry was allocated Rs 2,03,672 crore in 2013-14 and was provided Rs 2,24,000 crore in the interim budget presented by the UPA government in February this year. STORY CONTINUES BELOW THIS AD “There can be no compromise with the defence of the country. I, therefore, propose to allocate an amount of Rs 2.29 lakh crore for the current financial year,” Finance and Defence Minister Arun Jaitley said, presenting the general budget. For the modernisation of the armed forces, the Finance Minister allocated an additional Rs 5,000 crore above the Rs 89,587.95 crore provided for the acquisition of new weapon systems for the Ministry in the interim budget last year. “I propose to increase the capital outlay for the defence by Rs 5,000 crore over the amount provided in the interim budget. This includes a sum of Rs 1,000 crore for accelerating the development of railway system in border areas,” Jaitley said adding that acquisition processes would be streamlined for making it speedy and more efficient. The Government has also set aside a sum of Rs 1,000 crore for this fiscal to do away with anomalies in pensions paid to ex-servicemen under the One Rank One Pension policy, which was accepted by the new government. “We propose to set aside a sum of Rs 1,000 crore to meet this year’s requirements,” he said. Jaitley also announced the construction of a War Memorial and museum at the Prince’s Park near the India Gate here and allocated a sum of Rs 100 crore for it as the government also earmarked Rs 1,000 crore for modernisation of border infrastructure. STORY CONTINUES BELOW THIS AD PTI

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Budget 2014: Defence sector allocated Rs 2.29 lakh cr, FDI cap hiked to 49%

The Ministry was allocated Rs 2,03,672 crore in 2013-14 and was provided Rs 2,24,000 crore in the interim budget presented by the UPA government in February this year.

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