NEW DELHI (Agencies) - India has hiked its defence budget by 35 per cent in the next fiscal year (2009-10) as compared to last year's defence budget citing changed security environment after Mumbai attacks, pumping in an additional amount of Rs 361 billion. Presenting an interim budget before the Lok Sabha polls, the Congress led government allocated Rs1,417 billion for defence sector for the new fiscal year beginning from April 1, as compared to the last year's defence allocations of Rs1,056b. Presenting the interim budget in the Lok Sabha, Pranab Mukherjee who is also holding the additional charge of Finance Ministry said the security environment has deteriorated considerably after Mumbai attacks. "We are going through tough times, he said and added the Mumbai terror attacks have given an entirely new dimension to the security situation. With the total revised expenditure for defence last year standing at Rs 1,146b, he said the increased plan expenditure for defence this year would be Rs 868.79b. India has embarked upon a multi-billion dollars ambitious programme of modernisation of its three forces by acquiring advanced weapons from different countries including Israel, Russia, US and France. Rs 45b more for Indian paramilitary forces in FY 09-10 Indian government on Monday allocated additional Rs45b in 2009-10 interim budget to Central Police organisations with CRPF, the world's largest paramilitary force, bagging the lion's share of Rs17b. The CRPF, which plays a key role in assisting state governments to tackle insurgency, naxalism, terrorism besides internal security duties, got Rs72.08b this year against Rs55.10b in 2008-09 - an increase of Rs16.98b. The BSF, entrusted task of keeping vigil along LoC in Jammu & Kashmir and the country's 6,622 kms borders with Pakistan, Bangladesh & Myanmar, got Rs11.56b more compared to last year's Rs53.77b. The CISF, which is on threshold of a massive expansion programme, will receive Rs4.8b more than last year's Rs20.01b. The force has recently been given additional responsibility of guarding private and joint venture installations and Indian Embassies abroad. With insurgency in Northeast remaining matter of grave concern for security establishment, Rs22.59b was earmarked for Assam Rifles for 2009-10, an increase of Rs5.28b. It is the steepest increase in defence spending since independence in 1947 and experts said the lion's share would be spent on modernising the world's fourth largest military. The full budget for the financial year 2009-10 will be presented by the party that wins power in upcoming general elections and will not come until around July. Defence Minister AK Antony told an international airshow last week that the military had no intention of cutting down its shopping list, despite the effects of the global economic slowdown. The 1.23-million strong army, whish is scouting global arms bazaars for helicopters, artillery, armour and infantry gear, received the largest share of the cash, with an allocation of 11.79 billion dollars in the interim budget. The airforce, which is on the verge of handing out a 126-warjet contract worth almost 12 billion dollars, was allotted 2.86 billion dollars. Six global aerospace firms are competing to grab the rich fighter jet deal which stipulates India will buy outright 18 planes by 2012 and locally assemble the remaining units under licence at a state-run facility. The navy, embroiled in a squabble with Russia over an aircraft carrier contract, was allocated 1.66 billion dollars. Mukherjee said the remaining would fund wages, pensions, military research and sundry expenses. India, the biggest weapons buyer among emerging countries, has imported military hardware worth 28 billion dollars since 2000. It has earmarked another 30 billion dollars to be spent by 2010 that also includes 3.5 billion dollars for 700 helicopters, 1.5 billion dollars for AWACS and an unspecified amount for drones, mainly from Israeli arms firms.