NEW DELHI: Indian finance minister Manmohan Singh on Feb.28 proposed a big increase in the next year’s army and police budget.
Speaking in the Lok Sabha the minister said the army would get an additional Rs.2.320 crore and the police Rs 303 crore a step-up of almost 20%.
A sum of Rs 23000 crore has been earmarked for the defence forces as compared to the current year’s Rs 19180 crore. Within the defence budget allocation the army would claim a lion’s share of Rs 11135 crore as ¢compared to the current year’s Rs 9425 crore The air force will get RS3618 crore (Rs 3064 crore) and the Navy Rs 1355 crore (Rs 1125 crore).
The minister said that the country could not afford to compromise its security and therefore higher allocation was being made to cope with the increased threat perceptions. He did not reveal the sources of security threats to India.
The minister announced tax concessions of Rs 4081 crore mostly to industry with the aim of making it competitive internationally besides the rupee was made convertible on current account. The minister also announced that India would return the IMF loan a year ahead: He said that lending rate by the banking industry would be cut by one percent.
Manmohan Singh’s proposals this year were received by the capital market with less enthusiasm as the Bombay stock exchange’s sensitive share index fell sharply. It appears that the prime minister’s own policies contributed to dilute some of the innovations of the finance minister
Article extracted from this publication >> March 4, 1994
