5. Defense Budget
India's 2000-2001 budget, presented by Finance Minister Jaswant Sinha, includes a 28percent increase in the defense department allocation. A total of Rs 58,587 crore (US$ 13.4 Billion), or 2.7percent of GDP, has been allocated to defense. Prime Minister A.B. Vajpayee explained that the increase was required "in the wake of the deteriorating security environment."
"Defence hike in line with past post-war trends"
Chief Executive Pervez Musharraf stated that Pakistan did not wish to pursue an arms race with India, but that security requirements would be met. Foreign Ministry spokesperson Tariq Altaf said that he is "afraid that we might see some military escalation" and a Foreign Ministry statement suggested that the budget allocation further demonstrates India's "hegemonic designs." Ambassador Munir Akram, Pakistan's permanent representative to the United Nations, said that Pakistan would "respond resolutely" to any threatening signals from India.
"'Pak. not for arms race with India'"
"Indian defence budget hike may increase tension: FO"
"Indian budget reflects hegemonic designs: Pak"
"'Pakistan to reply resolutely to Indian threats'"
U.S. Response: U.S. State Department spokesperson James Rubin James Rubin declined to comment on the record. Off the record, however, unnamed U.S. officials described the new budget as "a disappointing sign" and suggested that South Asia more cross-border conflicts are likely in the coming year.
"India's defence hike, a 'disappointing sign'"
"Prospects for peace in South Asia dim with Indian defence hike: US"
Indian analysis: A Times of India editorial described the budget increase as "an unpleasant decision made inevitable by successive years of neglect." Shyam Bhatia argues (Deccan Herald) that India is trying to force Pakistan to choose between peace and poverty.
"Arms and the Men"
"'India taking Reagan route to outwit, bankrupt Pak'"
Pakistani analysis: A Dawn editorial suggests two negative aspects of the Indian budget: it intensifies an inter-state arms race, and it diverts funds from India's social sectors. The News editorializes that "India's proclaimed sense of insecurity is a masquerade for its quest for power and glory." Farruka Saleem (The News) provides a tabular comparison of the Indian and Pakistani militaries. He, along with Kamal Matinuddin (The News) urges the Pakistan government to make its budget choices on the basis of security requirements alone.
"India's military ambition"
"Dangerous move"
"India lays down the trap" Farruka Saleem
"It is not for us to follow Delhi" Kamal Matinuddin