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Defence Budget still top priority
7/7/2009 10:30:19 PM
Once again the security related problems in Jammu and Kashmir and in the north-east have motivated the Finance Minister, Pranab Mukherjee, to increase the budget allocations in defence sector by 34 per cent. In his budget proposals for 2009-2010,which were presented in the Parliament on Monday. In last year's budget proposals there was an increase of 10 per cent in the defence sector against 34 per cent proposed by Mukherhjee this time. He has propo9sed to allocate Rs.141703 crores against Rs.105600 crores in 2008-2009.When the allocat ions in health and education sectors are taken into account the raise is in the r ange of 12 to 15 per cent. One may argue that since the expenses on the salary component on armed forces have gone high additional allocations were called for. Well the sixth pay commission recommendations had given a marked boost to the salary structure in all other Government departments where also higher allocations were called for. The allocations have been increased in all sectors but the range of hike in defence plan allocations are higher than other sectors. This has been done to facilitate India to go in for modernisation of its weapon system. Its fleet of war planes has become obsolete and a large number of war planes have outlived their utility.In addition to this the situation on the India-Pakistan, India-Bangladesh and Indian China borders continues to be disturbing because of continued infiltration of militants and smuggling of weapons, ammunition and explosives. This calls for strengthening of the border defence that would require higher allocations. Pakistan and China have been aiding insurgency in Jammu and Kashmir and in the north-east respect ively besides this Pakistani agencies have been in the look out for an opportunity for repeating Mumbai carnage. This calls for greater expenses in the defense sector. Well experts are of the view that normal and friendly relations with China and Pakistan could help India in reducing annual allocations on defence allowing it a chance to increase financial allocation on education, health, social services, science and technology and poverty alleviation programme. But so long Beijing and Islamabad continue to exhibit their extra territorial ambitions India cannot but keep on increasing financial allocations on defence. Well the budget proposals have given marginal r elief to the tax payers as tax exemption has been increased by Rs.10,000 to Rs.15,000 After the sixth pay commission recommendations have been implemented marginal tax exemption may not help the tax payer in the Government sector. One positive feature of the budget proposals is that it has increased allocation on National Rural Employment Gurantee Act (NREGA), Backward Region Grants Fund(BRGF),Pradhan Mantri's Swashtya Suraksha Yojna (PMSSY) and Indira Awaas Yojna (IAY) and other allied sectors which may change the face of rural areas in the country.

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