Interim Budget 2014-15: One Rank One Pension for defence personnel

Presenting the interim budget, the last financial account of UPA-2 in the Lok Sabha today, Finance Minister P.Chidambaram announced amidst thumping of desks by ruling party members that the government has accepted the principle of One Rank One Pension for the defence forces.

Proposing transfer of 500 crore rupees to the defence pension account in the current financial year itself, he said the nation needs young fighting force and there is need to take care of those who served in the defence forces only for a limited number of years. Therefore, he said the government has decided to walk the last mile and close the gap for all retirees in all ranks. The minister also announced 10 percent hike in defence allocation.