ABSTRACT
The Finance Minister P. Chidambaram presented the budget to the parliament on 28 February 2013 and allocated INR 2,03,672 crore for the Ministry of Defence, increasing the amount by INR 25,169 crore from the last year’s revised estimate of INR 1,78,503 crore. The budget allocation was 1.79 per cent of GDP. It represented 14 per cent hike since last year, aimed at modernisation drive of the armed forces. 1 Of the INR 2,03,672 crore, INR 86,741 crore will be for capital expenditure while the remaining about INR 1,16,000 crore will be for revenue expenditure. 2
