M A I N   N E W S

Sinha: more funds for defence if needed

New Delhi, December 25
Finance Minister Yashwant Sinha today said he would not hesitate to hike defence allocation in the forthcoming Budget if the current Indo-Pak situation warranted it.

“While the defence Budget for the current year is Rs 65,000 crore, which provides sufficient cushion to prepare any eventuality, the fact remains that if more funds were to become necessary either in the current year, which is very unlikely or in the next year, which is likely I will not hesitate to provide those funds,” he told PTI in an interview here.

Mr Sinha said any kind of uncertainty was bad for economic growth. “One can not have a buoyant economy in an era of uncertainty,” he added.

“War psychosis has led to uncertainty. War is best avoided and from all statements our leaders have made India is not for war. But if hostilities are thrust upon us, then we shall not shirk from the challenge.

“It will not be the best of things for the economy to happen but national security is supreme,” he said, emphasising that any financial requirement for defence would be met.

Asked whether India would step up diplomatic offensive by withdrawing the most favoured nation (MFN) status granted to Pakistan, Mr Sinha said, “We have been giving facilities like the MFN unilaterally. There is no legal difficulty in withdrawing it at all.

“But considering that Pakistan’s economy is in a very fragile state for quite some time, it should be a major disincentive for that country to launch any hostility,” he added.

He said Pakistan was surviving on doles from outside. If the IMF and bilateral donors were not forthcoming, then they would be in a much worse condition.

The minister said Pakistan had received some favours because it took a U-turn on its policy towards terrorism but that clear shift is not visible as far as India was concerned. PTI