Keeping in view the current security environment in the region, the committee said as reflected by bugdetary allocations, ``the defence of the country is yet to receive due priority it deserves from the government''. The defence budget has been stagnating at 2.4 per cent of GDP over the last decade, it said.

In its first report, the 43-member committee said government should accord high priority to the defence sector and allocation for 1998-99 should be enhanced adequately so that various modernisation and upgradation schemes which are on the anvil and are vital for defence preparedness, are not hampered.

The committee, headed by Lok Sabha member squadron leader Kamal Chaudhry, said the 14.3 percent increase over the revised estimates of 1997-98 is just about enough to meet the outflow of the Fifth Pay Commisssion recommendations which is estimated to be ten per cent of the budgetary estimates and general inflation of six per cent.

``Thus in real terms the provision for items other than salaries and allowances in the defence budget has remained static, if not reduced,'' the report tabled in the Lok Sabha said.

The report said defence ministry had recommended a total provision of Rs 43,721.25 crore for 1998-99 after detailed consultation with service headquarters and departments. Of this, Rs 32,618.18 crore was under revenue and Rs 11,103.07 crore under capital.

Finance ministry, however, allocated Rs 41,200 crore against defence ministry's recommendations with a provision of Rs 30,840.32 crore under revenue and Rs 10,359.68 crore in capital.

The report said that hike sought by defence ministry was for ongoing and committed schemes and new schemes for modernisation.

The committee at thesame time felt that for optimum utilisation of budget allocations and to avoid time and cost overruns both in acquisition of equipment as well as in manufacturing and research projects, it is of utmost importance that a mechanism is evolved in taking quick decisions.

Ordnance privatisation:

Meanwhile, the government was thinking of allowing private sector to manufacture some items in the ordnance factories and corporatisation of some departments in these factories, the Lok Sabha was informed today.

Replying to supplementaries, Defence Minister George Fernandes said the outcome of the recent interaction between Confederation of Indian Industry and the Defence Ministry was awaited before taking the next step towards involvement of private sector.

New Hyperplane

`AVTAR' a reusable space plane is in the conceptual stage of development by the Defence Research and Development organisation (DRDO).

DRDO has carried out conceptual design of this reusable air-breathing vehicle calledHyperplane, Defence Minister George Fernandes revealed in Parliament.