New Delhi, Mar 16: With several defence deals including the one to procure 126 combat aircraft for the IAF expected to be clinched this year, the Defence Budget was today substantially hiked by more than 17 per cent to Rs 1,93,407 crore from last year's Rs 1,64,415 crore.
Of the total outlay, over Rs 79,500 crore would be spent on procuring modern weapons systems and military hardware. This allocation is based on the present needs and any further requirement for the security of the nation would be made, Finance Minister Pranab Mukherjee said.
The deals which are likely to be signed this year include 126 Medium Multi Role Combat Aircraft (MMRCA), 145 Ultra Light Howitzers (ULH), 197 Light Utility Helicopters and others weapons and systems for the three services. [See Video: Pranab Mukherjee announces budget 2012]
Presenting the budget, Mukherjee said that Rs 1,93,407 crore has been allocated for defence forces of which over Rs 79,500 crore would be earmarked for capital acquisition. India plans to spend over USD 100 billion on defence acquisitions in the next five to 10 years.