9% hike likely in defence budget allocation
New Delhi, 22 Feb. 2016: The budget coming up is likely to see a 9% rise in Defence sector, to Rs.2.68 lakh crores, for the years 2016-17. The pension bill is also likely to go up to Rs.80000 crores. If the pensions and civil expenses are thus included, it will rise by 13%.
The pension bill is expected to expand in the next fiscal, owing to the expected implementation of the one rank, one pension plan.
In 2015-16, Rs 77,406 crore of the Rs 93,675 crore allocated to the defence ministry was earmarked for acquisition of weapon systems for the three forces. The forces though, have not been able to exhaust their committed liabilities in a few cases. Officials said that this happened because the payments for previous procurements are to be disbursed after reaching certain milestones. “In some cases, deliveries or milestones could not be ensured on time by the departments.