Question: Will the Minister of DEFENCE be pleased to satate :-

(a) whether it is a fact that Government is considering to cut the defence budget for the current financial year;

(b) if so, the details thereof and the reasons therefor;

(c) whether cutting of defence budget will affect the modernization of defence forces in the country; and

(d) if so, Government’s reaction thereto?

Answer: Minister of Defence (Shri A.K. Antony)

(a) & (b): The allocation in the current financial year has been reduced by ` 4,903.77 crore under the Revenue segment and ` 10,000.00 crore under Capital in the Revised Estimates 2012-13. This has been done in view of the prevailing fiscal situation.

(c) & (d): No, Sir. The allocation made for Defence is adequate to sustain the pace of modernization in the current financial year. The Government is continuously monitoring progress of schemes to ensure that defence preparedness is maintained at an optimum level by ensuring prioritization of expenditure within the available funds.

Defence Acquisition

Defence Economics & Industry