Defence gets modest 5% hike in budget

With modest jump of over 5%, the India will spend Rs2.03,672 crores on defence in the next financial year as compare to previous year's outlay of Rs1,93,407 crore. It constitutes 1.79 per cent of the country's GDP.

The increase in defence spending this year is much smaller than the 17.6% raise the armed forces received in last year’s budget—one of the highest in recent years.

Of the total defence outlay for 2013-14,Rs.86,741 crore will be in the category of capital expenditure(modernisation purpose). Of the Rs86,741 crore Indian Air Force has been allocated the largest share, followed by Army and Navy respectively for acquiring new weapons.

IAF is expected to sign its one of the biggest deal for 126 medium multi role combat aircraft(MMRCA), 22 Apache attack choppers for the army and 16 multi role helicopters for navy..

Though the defence ministry had sought Rs253,345.91 crore, but the allocated budget for 2013-14 has increase of over 14% of the Revised Estimates of Rs1,78,504 crore of 2012-13.

Reacting to budget, defence minister AK Antony said "Taking into account the difficult economic situation both at home and abroad, the finance minister...has been fair to the Defence Sector also by increasing the budget"