This is the the first time that the Defence budget crosses the Rs one lakh crore mark. Finance Minister P Chidambaram, while presenting the 2008-2009 budget proposals in Parliament, also assured that more funds would be provided if required. ''I propose to increase the allocation for Defence by ten per cent from Rs 96,000 crore to Rs 105,600 crore. I have assured the Raksha Mantri (Defence Minister) that any further amount needed for the Defence Forces, especiallly for capital expenditure, will be provided,'' Mr Chidambaram said in his budget speech.
The current allocation includes revenue and capital expenditure on Defence services, net of recoveries and revenue receipts.
The components are : Army Rs 36,270. 75 crore, Air Force Rs 10855.56 crore, Navy 7421.19 crore, Research and Development (R and D) Rs 3393.59 crore and Capital Outlay on all the above services Rs 48007 crore for Modernisation of the Defence Forces.