The government has proposed Rs 1.29 tonnes for defence expenditure.



ISLAMABAD: The government has proposed an Rs2.5 trillion defense allocation for the next fiscal, which represents an 11.8 percent increase in the original allocation for the outgoing year.


Federal Industry Minister Hammad Azar, presenting the budget in the National Assembly, said that "the defense and internal security have paid sufficient attention to the budget."

Due to the economic challenges faced by the country, the military pardoned the huge increase last year to 4.74 percent, but by the end of this year, it had exceeded the allocation by 6.33 percent.

The original allocation for the previous year was Rs.1.15 trillion, but according to the revised figures presented before the lower house of parliament, about Rs.1.23 trillion was spent. This is a sample of the actual defense expenditure in one year beyond the original allocation.

The annual budget allocation represents an increase of 11.8%

The amount allocated to the defense sector is 17.68 percent of the projected total expenditure for next year, which is estimated at 7,294.9 billion. The share was 14 percent last year.

The share of defense services in the budget shows how much money is actually going to the armed forces.

Meanwhile, when measured against GDP, it has a share of 2.82%. The size of GDP is approximately $ 45,643 billion. The original allocation for the outgoing year was 2.62 percent of GDP.

Calculating the defense budget as a percentage of GDP indicates its burden on the national economy. Pakistan's defense spending is the highest in the region, with China's budget at 1.9 percent, India at 2.4 percent and Iran at 2.3 percent.

Comparing the proposed defense expenditure to total expenditure and GDP share is similar to the 2018-19 budget presented by the previous PML-N government, which accounts for 18.5 per cent of the total pie and 2.87 per annum. Percentage of GDP.

The figures for defense spending really don't give a complete picture of the amount of defense spending. Determining a pension for retired soldiers is one major exception. The government will pay Rs 369 billion under this head next year - an increase of 12.8% compared to the previous year. Further, major acquisitions of the Armed Forces are not reflected in the budget and the same applies to the nuclear program.

A close analysis of the proposed data shows that the increase in the cost of the underwriting of civil works is a significant funding responsibility for the maintenance of existing infrastructure and construction of new buildings. The civil work component will grow by 26.14 percent to Rs 155.5 billion.

Two major civil works projects currently underway by the military include the construction of border posts and border posts with Afghanistan and Iran.

The operating costs of providing transportation, POL, ration, medical treatment, and training are $ 301 billion - 13.77 percent, while others go for Rs.357.7 billion for physical assets - which is the key to buying arms locally. And ammunition and other purchases - an increase of 13.43 percent.

Employee-related expenses increase of at least 5.6 percent. However, this head consumes most of the defense budget. Rs. 475 billion has been allocated for this purpose. The Left Joint Services Headquarters memo shows that the armed forces are demanding a 20 percent pay rise. However, this did not happen,

In terms of the distribution of funds among various services, the army's share has increased to 47.55 percent compared to 21.25 percent in the PAF, 10.85 percent in the Navy, and 20.33 percent in the establishment of inter-service.

Last year, the Army accounted for 45.4 percent, the PAF 22 percent, the Navy 11.3 percent, and the Inter-Service Establishment 21 percent.

This year the army has raised Rs. 13,000 billion, PAF Rs 274 billion, Navy 140 billion, and Inter-Services Establishment Rs 2626 billion.

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