Budget hike for Defence unlikely

Chidambaram had given the MoD Rs 83,000 crore last year, which amounted to a 7.8 per cent jump over the previous year, with a Rs 1,000 crore increase in capital outlay as well. The armed forces are hopeful for a further re-jig in the ratio for a larger capital outlay this year too.

South Block sources said in this Budget, the Army is likely to get just over Rs 40,000 crore, the IAF about Rs 25,000 crore and the Navy possibly a little over Rs 15,000 crore. A parallel hike in revenue expenditure has been asked for and is likely to be looked favourably upon in the Budget.

With proposals for a non-lapsable defence fund shelved after it was found to be ‘‘unviable’’ by a Ministry-commissioned study last year, the armed forces are nervous about the huge expenditures they have already committed to— precisely their case for a larger capital outlay.