Defence ministry seeks additional outlay of Rs 45k cr

The defence ministry will seek an additional outlay of Rs. 45,000 crore from the Centre this year to build a range of military capabilities, factoring in "changed threat perception" — euphemism for the possibility of China and Pakistan coming together.

The defence ministry will seek an additional outlay of Rs. 45,000 crore from the Centre this year to build a range of military capabilities, factoring in "changed threat perception" — euphemism for the possibility of China and Pakistan coming together.

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If the government agrees to loosen its purse strings further, India's defence outlay for 2012-13 will rocket up to Rs.2.39 lakh crore ($47.8 billion) from Rs. 1.93 lakh crore ($ 38.6 billion). The proposed increase will take defence expenditure from 1.9% of the GDP to 2.35%, defence minister AK Antony told Rajya Sabha on Tuesday.

The demand comes two months after the Centre announced a 17% hike in military expenditure in Budget 2012, increasing it from Rs. 1.64 lakh crore in Rs. 1.93 lakh crore.

"We need to take a second look at the defence budget in the wake of changed threat perception. The budget of Rs. 1.93 lakh crore is good, but less than the military's estimates," Antony said, replying to a discussion on the working of his ministry.

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China's defence outlay for 2012 may be officially pegged at $106.41 billion (Rs. 5.3 lakh crore), but its actual military spending could be twice as much.

BJP leader Arun Jaitley asked, "How do we defeat Pakistan, how do we hold China…do we have the defence preparedness to do so?"