India's Defence Budget Hiked 10 Percent To 224,000 Cr

New Delhi: Finance Minister P. Chidambaram announced a 10 percent hike in defence expenditure to 224,000 crore (2.2 trillion/($36 billion) while presenting the interim budget for 2014-15 in the Lok Sabha.

This is against the 203,627 crore allocated in the budget for 2013-14 that ends March 31.

While 89,588 crore has been set aside for acquisitions by the armed forces, 134,410 crore will go toward payment of salaries and pensions and other expenses.

Chidambaram also announced that the government has accepted the long pending demand of the retired personnel of the armed forces for one rank, one pension (OROP), whose implementation would cost 500 crore in 2014-15.

The main budget for the financial year 2014-15 will be presented by the new government that will come to power after the general elections, the schedule for which is likely to be announced by the Election Commission soon.

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