In its first budget, the new government of Prime Minister Narendra Modi has promised a new era of fiscal prudence and greater opportunities for foreign investors in key sectors of the economy, including defense. (Budget 2014: Highlights)
Finance Minister Arun Jaitley announced an increase in the permitted level of foreign direct investment in the defence sector to 49 percent from 26 percent. (Finance Minister Sparks Confusion on Fiscal Deficit Target)
To ensure that the military, which has repeatedly warned of outdated and inadequate equipment, has its way on the modernization drive, the government has budgeted Rs. 94,588 crores, Rs. 5000 crore more than what was sanctioned by the previous government in February in the interim budget this year. Overall defence spending has gone up by Rs. 26 lakh crores to Rs. 2.26 lakh crores. (Arun Jaitley Provides Big Relief to Income Tax Payers)
Mr Jaitley also said that a war memorial will be created in the heart of Delhi near India Gate at a cost of Rs. 100 crores. This, he added, would be supplemented by a War Museum. (Finance Minister Arun Jaitley Takes Break During Budget Speech)
The minister also said that 1,000 crores will be used to implement the one-rank-one-pension scheme, which guarantees that soldiers of the same rank and duration of service will receive the same pension, irrespective of the year of their retirement.
