Sinha, who announced the defence allocation as part of his Budget speech in the Lok Sabha, described it as "substantial" and assured to consider further budgetary support for the sector during the course of the year, if necessary.

The allocation of Rs 41,200 crore for defence announced by the Finance Minister is Rs 5,101 crore more than the revised estimates of Rs 36,099 crore for 1997-98 and Rs 1,200 crore more than the allocation of Rs 40,000 crore for defence allocated by him for the sector while presenting the interim Budget barely 10 weeks ago.

The allocation for defence announced this time is also Rs 5,580 crore more than the Budget estimate of Rs 35,620 crore announced last year. Last year's budgetary allocation for the defence sectoralso included Rs 3,620 crore meant to take care of the obligations of the implementation of the Fifth Pay Commission.

Meanwhile, welcoming the hike in defence outlay, ex-servicemen and scientists said it would be a catalyst for the country's march towards the new millennium as a potential superpower.

Ex-servicemen said the increased allocation upwards of Rs 5,000 crores for defence expenditure, would be a morale booster for the serving personnel close on the heels of the underground nuclear tests at Pokharan and in conformity with the country's security concerns.

Scientists of the Babha Atomic Research Centre (BARC) and Nuclear Power Corporation welcomed the 68 per cent rise in allocation for Atomic Energy Department, besides the 62 per cent augmentation in the financial resources of the Space Department.

"This is the first Budget which has simultaneously stepped up allocations in the three key areas of defence, atomic energy and space technology," the happy scientists said.