- Finance minister Arun Jaitley caught between 3 defence chiefs’ demand for 2 % of GDP in budgetary allocation, his officers say no money in central exchequer
- Jaitley holds twin portfolio of Defence and Finance ministries, on hike in defence budget officials say money can be arranged only via subsidy cut
- UPA set aside lowest ever 1.74 % (Rs 2,24,000) of GDP allocation as interim budget
- 3 service chiefs say any further cut in defence allocation to adversely hit defence modernisation efforts, Jaitley says he need to do a balancing act
- Restructuring subsidies may be an answer to higher fund allocation CII advises Jaitley to sell 67 insolvent PSUs to generate funds
- Read at: http://www.thehindu.com/todays-paper/tp-national/jaitley-caught-in-defencefinance-crossfire/article6093673.ece
Exams Perspective:
- Defence outlay in India’s GDP
- GDP
- Defence Modernisation