Citing Q2 growth of 7.6 per cent in FY24, the Union finance minister said the country had the most significant growth making it the fastest-growing economy.
Union Finance Minister Nirmala Sitharaman on Saturday in the Union Budget allocated Rs 1,10,734 crore for modernisation and buying of new weapon systems.
The amount is Rs 10,340 more than what was provided in the last year’s budget.
The defence budget hiked by 6 per cent to Rs 3.37 lakh crore which was earlier Rs 3.18 lakh crore. The total budget with defence pensions goes upto Rs 4.7 lakh crore.
Government has also given hike in defence pension budget which goes up to Rs 1.33 lakh crore from Rs 1.17 lakh crore which was allocated last year.
The hike in defence pension budget is more than the hike given in revenue and capital funds for defence.
Nirmala Sitharaman has also proposed a new simplified income tax regime during the presentation of the Annual Budget 2020. The new tax regime, which will be optional comes with a catch, as under the new regime, the taxpayers will not be able to avail of any deductions or exemptions which was earlier allowed to lower the amount of salary that was taxed.