Defence Budget increased over Rs 20,000 crore; crosses Rs 3,00,000 crore for first time
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Piyush Goyal said the soldiers protect India's borders in tough conditions and that due care has been taken for them.
An outlay of Rs 3.05 lakh crore was set aside for the defence Budget for 2019-20 which was a hike of around Rs 20,000 crore compared to allocation of Rs 2.85 lakh crore in the current fiscal.
Presenting an interim Budget for 2019-20 in Parliament, Union Minister for finance and corporate affairs Piyush Goyal said additional funds, if necessary, would be provided to secure the country's borders and maintain defence preparedness.
"Our defence budget will be crossing Rs 3,00,000 crore for the first time in 2019-20. For securing our borders and to maintain preparedness of the highest order, if necessary, additional funds would be provided," he said.
Referring to strengthening defence and national security, Goyal said the soldiers protect India's borders in tough conditions and that due care has been taken for them.
He said the issue of One Rank One Pension (OROP) which was pending for the last 40 years has been resolved.
"The previous governments announced it in three budgets but sanctioned a mere Rs 500 crore in 2014-15 interim budget. In contrast we have already disbursed over Rs 35,000 crore after implementing the scheme in its true spirit," he said.
He said the government also announced substantial hike in the Military Service Pay (MSP) of all service personnel and special allowances were given to naval and air force personnel deployed in high-risk duties.
After the defence Budget was announced, shares of companies related to defence sector rose up to 5 per cent as an outlay of Rs 3.05 lakh crore was set aside for the sector for 2019-20.
Shares of Walchandnagar Industries jumped 4.71 per cent, Bharat Electronics gained 2.98 per cent, BEML 2.79 per cent and Bharat Dynamics 1.76 per cent on BSE.