Finance Minister P. Chidambaram Monday announced a 10 percent hike in defence expenditure to Rs.224,000 crore (Rs.2.2 trillion/($36 billion) while presenting the interim budget for 2014-15 in the Lok Sabha.
This is against the Rs.203,627 crore allocated in the budget for 2013-14 that ends March 31.
While Rs.89,588 crore has been set aside for acquisitions by the armed forces, Rs.134,410 crore will go toward payment of salaries and pensions and other expenses.
Chidambaram also announced that the government has accepted the long pending demand of the retired personnel of the armed forces for one rank, one pension (OROP), whose implementation would cost Rs.500 crore in 2014-15.
