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Defence budget could be increased to 3% of GDP

Defence Minister George Fernandes said on Monday that the defence budget could be increased to 3 per cent of the gross domestic product by next year.

"I am personally campaigning for it, we need some time. Hopefully we will have 3 per cent of GDP as the defence budget by the next Budget or the one after that," Fernandes told reporters after reviewing the Territorial Army Day parade in New Delhi.

But at the same time he asserted that neither the army nor the air force or navy were facing any major financial crisis.

Referring to the agreements signed with Russia during President Vladimir Putin's visit, the defence minister said these would help India increase the indigenous production of armaments and enhance its military preparedness.

Reacting to senior Hurriyat Conference politician Abdul Gani Lone's statement, indicating that the stalled talks to resolve the Kashmir issue could be resumed soon with Pakistan being also involved, he said there was "nothing new" in it.

"Government position is very clear," he said. "We can have a dialogue with Pakistan only when Islamabad stops cross-border terrorism."

The defence minister also ruled out any other Kargil-type misadventure by Pakistan, saying, "One Kargil was enough for it. They may have their plans, but they cannot succeed".

PTI

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