ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Defence Expenditure- Real and Apparent Burden

Real and Apparent Burden NO other aspect of the Budget receives as little attention as the allocation for defence, despite the fact that a major share of budgetary resources are diverted there. Increases in the allocation for defence have, of course, become a recurring annual phenomenon. Apart from the increase shown at the time of presentation of the Budget, there is the usual upward revision in defence expenditure in the course of the financial year. Thus the revised estimate of defence expenditure in 1984-85 is Rs 7,175 crore, an increase of Rs 375 crore over the Budget provision of Rs 6,800 crore. It is inevitable, therefore, that the provision of Rs 7,686 crore for defence in the 1985-86 Budget too will be revised upward. And in 1985-86 the upward revision may be larger than usual. There are at least two reasons for this. One, the Fourth Pay Commission will soon be submitting its report and in all likelihood it will recommend higher salaries and dearness allowance for defence personnel. Second, our programmes for procurement of new weaponry will make major headway during 1985-86. For example, only the final round of negotiations remains for the licensed production of MiG 29 at HAL, Nasik

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