Mumbai attacks prompted govt to a 34pc hike
Our Correspondent, New Delhi
India today announced a 34 percent hike in its defence budget keeping in view the security scenario in the wake of Mumbai terror attacks last year.
Finance Minister Pranab Mukherjee, who presented the interim budget in parliament, said the allocation has been increased as the security environment has “deteriorated considerably.”
Noting that the Mumbai attacks had amounted to the threshold being crossed on the security front, he said, “We are going through tough times. The Mumbai terror attacks have given an entirely new dimension to cross-border terrorism.”
With the total revised expenditure for defence last year standing at Rs 1,14,600 crore, Pranab said the increased ‘plan expenditure’ for defence this year would be Rs 86,879 crore.
Last year’s ‘plan expenditure’ was Rs 73,600 crore with an increase of Rs 13,279 crore this year.
Ahead of the parliamentary polls in April-May, the government in its budget announced several significant steps, and allocated Rs 1,31,317 crore for its flagship social sector schemes to boost a slowing economy.
The budget makes no changes in direct and indirect taxes, but for the extension of a two per cent interest subvention on pre and post-shipment credit to certain labour-intensive sectors to support exports hit by the global economic slump.
“The mandate of the government is coming to an end by May 22-23. Elections are due. I can neither indulge in reckless borrowing nor go on imposing taxes without the mandate of parliament. It will be a wrong thing to do,” Mukherjee said as the Indian industry termed the budget a “big disappointment”.
The opposition dubbed the budget as offering “poll lollipops” with BJP leader Arun Jaitley.
The Congress said it’s a remarkable budget, especially for the common man.
Courtesy: thedailystar.net
