Reuters, New Delhi ;
Indian Finance Minister Arun Jaitley on Wednesday announced a more than 10 per cent increase in the country’s defence budget for upcoming fiscal year, The Times of India reported.
India’s defence budget was increased to 2.74 trillion Indian rupees (INR) – excluding pensions – compared to previous fiscal year’s (2016-17) budget of INR 2.49tr.
The allocation is about 12.78pc of total government expenditure, which is INR 21.47tr.
This is the second consecutive increase of over 10pc in the defence budget, ToI said, adding that analysts said the increase would be necessary to deal with inflation and the ongoing modernisation drive in military hardware.
However, without the pension component, the increase in the budget amounts to approximately 5.8pc over the previous fiscal year.
The portion of the budget allocated to capital acquisition for the upcoming fiscal year is just over INR 0.86tr as compared to previous year’s amount of INR 0.78tr. Approximately half the funds were returned, according to the Economic Times, signifying some difficulty in spending the allocated funds.
Addressing parliament, Jaitley called his fourth budget one for the poor.
Yet, while vowing prudent fiscal management, he also raised his 2017-18 federal deficit target to 3.2pc of gross domestic product (GDP) to cover his spending promises.
India will also ramp up spending on rural areas, infrastructure and fighting poverty, Jaitley said as he unveiled the annual budget, adding the impact on growth from the government’s cash crackdown would wear off soon.
Business back to normal after demonetisation?
Jaitley called India “an engine of global growth” but highlighted risks to its outlook from likely United States interest rate hikes, rising oil prices and signs that globalisation is in retreat.
Indian Prime Minister Narendra Modi’s surprise decision last November to scrap high-value banknotes worth 86pc of India’s cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments.
Indian Finance Minister Arun Jaitley on Wednesday announced a more than 10 per cent increase in the country’s defence budget for upcoming fiscal year, The Times of India reported.
India’s defence budget was increased to 2.74 trillion Indian rupees (INR) – excluding pensions – compared to previous fiscal year’s (2016-17) budget of INR 2.49tr.
The allocation is about 12.78pc of total government expenditure, which is INR 21.47tr.
This is the second consecutive increase of over 10pc in the defence budget, ToI said, adding that analysts said the increase would be necessary to deal with inflation and the ongoing modernisation drive in military hardware.
However, without the pension component, the increase in the budget amounts to approximately 5.8pc over the previous fiscal year.
The portion of the budget allocated to capital acquisition for the upcoming fiscal year is just over INR 0.86tr as compared to previous year’s amount of INR 0.78tr. Approximately half the funds were returned, according to the Economic Times, signifying some difficulty in spending the allocated funds.
Addressing parliament, Jaitley called his fourth budget one for the poor.
Yet, while vowing prudent fiscal management, he also raised his 2017-18 federal deficit target to 3.2pc of gross domestic product (GDP) to cover his spending promises.
India will also ramp up spending on rural areas, infrastructure and fighting poverty, Jaitley said as he unveiled the annual budget, adding the impact on growth from the government’s cash crackdown would wear off soon.
Business back to normal after demonetisation?
Jaitley called India “an engine of global growth” but highlighted risks to its outlook from likely United States interest rate hikes, rising oil prices and signs that globalisation is in retreat.
Indian Prime Minister Narendra Modi’s surprise decision last November to scrap high-value banknotes worth 86pc of India’s cash in circulation has hit consumer demand, disrupted supply chains and hurt capital investments.
