India has hiked its expenditure for defence by over 19 per cent in view of the security situation arising after the Mumbai terrorist attacks, according to the interim budget presented in parliament Monday, dpa reported.
"The Mumbai attacks have given a new dimension to cross-border terrorism," acting Finance Minister Pranab Mukherjee said while presenting the budget. A security threshold had been crossed with these attacks, he added.
Mukherjee said India's defence expenditure for the 2009-10 fiscal year had been increased to 1.41 trillion rupees (about 29 billion dollars) from the revised allocation of 1.14 trillion rupees for the current fiscal.
India's financial year runs from April 1 to March 31.
A little over a third of the allocation - 548.24 billion rupees - would be used for capital expenditure, Mukherjee said.
India is in the process of modernizing ageing equipment and aircraft and these have now been put on fast track.
At least 170 people were killed in India's financial hub Mumbai in November by a group of 10 terrorists who India claims came to the coastal metropolis by a sea route from neighbouring Pakistan.
Part of the funds would be used for plans to strengthen coastal reconnaissance and coastguards along with expansion of and additional equipment for crack commando troops. The government would provide for any additional requirement for the security of the nation, Mukherjee said.
The federal government initiated a massive revamp of the security structure of the country after the Mumbai attacks.
India's defence outlay is about 2 per cent of its gross domestic product.