New Delhi, Feb. 2: US president Barack Oabama's hike in military aid to Pakistan to defeat Al Qaeda has raised hackles in New Delhi where government fears diversion of funds against India. The Obama administration wants to hike military assistance to Pakistan by $0.5 billion. Under the proposal, the state department has sought $ 4 billion for Afghanistan and $3.1 billion for Pakistan. Pakistan's counter insurgency capability fund will go up from $700 million in 2009 to $1.2 billion in 2011. The money is meant to supply sophisticated arms to Pakistan military which is engaged in fighting Al Qaeda and Taliban on Afghan border. Some funds would be spent on training of soldiers.

The military budget hike comes with an increase in other assistance given to the country's economic stability. India has always viewed US military aid to Islamabad with suspicion and objected to the arming of Pakistan army in the name of fight against terrorism. It was felt that these weapons would eventually be used against India. The fear was not without a reason as former Pakistan president Pervez Musharraf had admitted to using the new gained military strength against India. Pakistan has a history of misusing the funds.

Obama's 2011 budget seeks a collective package of $ 10.7 billion, a 7.5 per cent increase from 2010, for re-construction of war zones in Afghanistan, Pakistan and Iraq. The money is part of the war related spending the Obama administration intends to make. India has not reacted officially to the new budget proposals but it has made its objections known to the US administration in the past. The Indian military officials claimed that the type of equipment being sold to Pakistan is meant to fight a full-fledged war and not terrorists alone.