Proposing a 7.8% increase in defence expenditure for 2005-06, India's Finance Minister P Chidamabaram pegged it at India Rs 830 billion against last year's allocation of Rs 770 billion. Of concern to Pakistan was the steep allocation of Indian Rs 344.72 billion in the capital outlay, the funding constituting 41.4% of the total defence budget. The Indians claim that the absence of prior-itization and failure to utilize funds in time over the years has led to the need for such huge allocations this time. The Indian Finance Minister said that the Defence Ministry had for the first time in five years spent the amount allocated for weapons and equipment purchases the previous year.
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