Feb 06, 2013, 08.02 PM | Source: Reuters
CHIDAMBARAM-DEFENCE-BUDGET:Chidambaram warns on defence cuts
"A cutback on expenditure on defence or police will severely compromise our defence and security preparedness," Finance Minister P. Chidambaram said in a speech defending recent economic reforms aimed at reviving growth.
"It is therefore a self-evident truth that growth is the key to greater public welfare and greater security," he said in a speech on national security at a defence think-tank.
"Provided we can grow at a higher rate we can provide more money," he said.
Chidambaram has driven cuts in spending, including $1.9 billion to defence acquisitions, in an attempt to meet a tough fiscal deficit target, sources told Reuters last week.
(Reporting by Arup Roychoudhury)