NEW DELHI: An outlay of Rs 2.95 lakh crore was on Thursday set aside forthe defence budget for the next fiscal which is an increase of 7.81 percentover last year’s Rs 2.74 lakh crore.

Out of the total allocation, the capital outlay for the three defenceservices for the purchase of new weapons, aircraft, warships and othermilitary hardware has been pegged at Rs 99,947 crore.

The outlay for defence budget amounted to 12.10 percent of the total budgetof Rs 24,42,213 crore for 2018-19.

Compared to the revised estimate of Rs 2.79 lakh crore for the defencebudget in 2017-18, the increase in allocation has been 5.91 percent butcompared to the budget outlay of Rs 2.74 lakh crore, the hike is 7.81percent.

Out of Rs 2,95,511 crore allocated for the financial year 2018-19, Rs99,947 crore has been pegged for capital outlay which includes expenditureon modernisation of the three forces, according to the defence ministry.

The revenue expenditure, which covers payment of salary, maintenance ofestablishments and other related expenditure, has been pegged at Rs1,95,947 crore.

A separate amount of Rs 1,08,853 crore has been set aside over the abovethe total allocation for the paying pension to defence personnel. Theamount for defence pension is an increase of 26.60 percent over theallocation of Rs 85,740 crore last year.

In his budget speech, Finance Minister Arun Jaitley appreciated the roleplayed by the armed forces in meeting challenges on the country’s bordersas well as in managing the internal security environment, both in Jammu andKashmir and the Northeast.

He said the government will develop two defence industrial productioncorridors and bring out an industry-friendly military production policy topromote the domestic defence industry.