Defence outlay to go up: Fernandes

NEW DELHI, April 14: Defence Minister George Fernandes has said that there would be another increase in the defence budget for 1998-99 over ...

NEW DELHI, April 14: Defence Minister George Fernandes has said that there would be another increase in the defence budget for 1998-99 over and above the 10 per cent hike given in the interim defence budget of Rs 40,000 crore. Speaking to newspersons here, he said the bulk of the budgetary increase would be offset by the increase in expenditure of salaries and pensions for the armed forces personnel.

He admitted that the Chinese Army had made incursions into Arunachal Pradesh and were building a helipad in the area. He, however, refused to elaborate on the response of the Government to this serious development.

Fernandes said a budgetary increase would be necessary to procure counter-measures for the armed forces to cope with the heightened threat perceptions due to the recent developments in the region.On the issue of Chinese involvement in Pakistan8217;s missile programme, and his pronouncement on the subject, he said it would not affect Sino-Indian relations. quot;I do not think our talks will be affected bycomments over a particular issue or situation,quot; he said.

Fernandes said while the Government had advance information about the Pakistani Ghauri8217; missile test it lacked details regarding the timing and quot;the dimension was in the realm of speculationquot;. He said the Indian response to the Ghauri8217; missile need not be reactive as quot;we have an ongoing missile programme.quot;

Fernandes said there are three versions of the indigenously developed Prithvi missile including one with a range of 350 km capable of targeting any part of Pakistan.

The Defence Minister admitted that the Army budget was being stretched owing to its involvement in counter-insurgency operations and these financial commitments were affecting its modernisation programme. quot;There is a good case for such expenditure from the Army budget being transferred to the Ministry of Home Affairs budget,quot; he added.

A major lesson to be learnt from the recently signed Northern Ireland accord with the British Government is that eventually such problems requirepolitical rather than military solutions, Fernandes pointed out.

Story continues below this ad

The Defence Minister said the visiting US Army Chief of Staff would be briefed on the quot;proxy warquot; in Kashmir during his visit to Udhampur and Leh which are under the Army8217;s Northern Command.