Budget 2016: Arun Jaitley may hike defence budget allocation by 9%

Finance Minister Arun Jaitley is likely to up the allocation in defence by 9% to Rs 2.68 lakh crore.

In the Budget 2016-17, the pension bill may go up by more than Rs 80, 000 crore.

In 2015-16 budget, out of Rs 93,675 crore, Rs 77,406 crore were earmarked for acquisition of weapon systems for the three forces.

However, the commitments haven’t been fulfil as yet due to payments for previous procurements were to be disbursed after reaching certain milestones.

"In some cases, deliveries or milestones could not be ensured on time by the departments. This has resulted in some funds for committed liabilities also lapsing," a senior official told ET.

(Image: Reuters)
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