NEW DELHI, India: A massive increase in financial allocation for internal as well as external security setup mark the budget proposal for the New Year presented to Indian parliament by Prime Minister Rajiv Gandhi who is also the Finance Minister. The police forces claim a 50% more allocation this year as compared to last year while the allocation this year for defense services has been raised by 43%.

In aggregate term the defense forces get about 25% of the total expenditure of the government of India for the year. The Prime Minister Rajiv Gandhi defended the increased financial allocation for defense by saying that the country’s border could not be left unguarded. The opposition Janata Party leader Mr. Madhu Dandavate said that the government of India’s wrong policies was at the back of the situation.

The outlay for defense has been put at Rs. 12,512 crores for 198788. This is 2300 crores more

Than the last year’s revised figure. In the new estimates the army gets the main junk of Rs. 66080 crores followed by Rs. 1648 crores for the Air Force and Rs. 615 crores for the Navy. The estimates for the army show an increase of about 300 crores over last year’s revised estimated budget. The major thrust on the capital outlay has been given to defense services which have been put to Rs. 3977 crores compared to Rs. 1,227 crores in the previous year.

As compared to Rs. 677.28 crores provided in the budget for the year 198687. The budget proposal for the year 198788 provides for Rs. 985.77 crores, a straight 50% increase for the internal security. Budget proposal for this provides Rs. 5 crores on modernization of police forces. A total provision of 500 crores in the budget estimates have yet to be met. The programme for expanding the B.S.F. envisages rising of additional man power, tactical border forces, and observation towers as well as equipping the force with sophisticated equipment and improved facilities for border patrolling.

The Union Government plans to further strengthen the C.R.P.F. as deployment of more and more central forces by the state governments for maintaining law and order has been increasing in the recent years.

Meanwhile, the departments that have suffered include agriculture, fertilizers, Industrial development, Mines and Petroleum and Natural Gas which get less compared to 198687. Meanwhile in the budget certain tax relief has been given for investment in housing and incidents of common supplement of consumer items like plastics, cement, foot wear, coal has been given concession. However, those travelling abroad except for health and educational reasons will have to pay a tax of 15% on foreign exchange released to them by government of India.

Article extracted from this publication >>  March 6, 1987