The Defence Ministry has sought additional allocation of Rs.20,000 crore primarily for procurements, as a substantial part of its budget has already been exhausted due to speeding up of acquisitions, said informed sources.
The additional allocation has been sought at a time when a stand-off with China continues in the Sikkim sector. Sources however said the demand had nothing to do with recent developments.
"This the time of the year when ministries usually seek more budget. It has nothing to do with any recent developments," a source said.
The Ministry has sought Rs.20,000 crore in addition to the around Rs.2.74 lakh crore budgetary allocation.
The source said the Ministry has already exhausted around 50 per cent of its budget as procurements have taken place at a "fast pace". Also, it is required to pay import duty on various procurements, said the source.
"In addition, more procurement powers have been given to forces recently, for that also funds are required," the source said.
The Defence Ministry recently delegated financial powers to the Vice Chiefs of three services to carry on perimeter security upgradation of sensitive defence installation.
Prior to that financial powers were delegated to the Army's Vice Chief to make hardware procurements up to Rs.40,000 crore to meet critical deficiencies after the force identified critical deficiencies in 46 types of ammunition and certain spares for 10 types of weapon platforms.