NEW DELHI, Feb 28: India on Friday announced only a small rise in defence spending for the next financial year, but said modernization projects would not be derailed.

The budget for the financial year beginning April 1 was set at 653 billion rupees (13.3 billion dollars).

The rise, announced by Finance Minister Jaswant Singh, marked a record low annual hike of just three billion rupees (62.5 million dollars) over the previous fiscal year’s allocation.

And in terms of percentage, the increment kept India’s defence spending harnessed at about 3.5 percent of the gross domestic product. Mr Singh promised that India’s military would not be starved of funds.

“National security is non-negotiable and during next year if any additional requirement arises on account of modernization of the three services there will be no shortage of funds for defence.”

India had allocated a budget of 620 billion rupees in the fiscal year 2001-2002, but the defence ministry gave back 50 billion rupees, saying it could not spend the amount in the stipulated period.—AFP