The national defence budget has been jacked up by nearly 6 per cent (Rs 35.2 billion) for the next fiscal year amid expectations that the US government will soon restore military aid to Pakistan. Defence allocation has been raised to Rs 545. 3 billion for 2012-13, against last year's revised budget of Rs 510.1 billion. India raised its defence expenditure by 17 per cent for next year, almost three times the percentage increase relative to Pakistan.
Defence sources said that the military establishment made no request for an increase in allocation for defence in acknowledgement of the government's financial constraints. However, the government decided to raise the defence budget in view of the country's security needs.
According to the budget document, Rs 229.5 billion has been allocated for employee-related expenses, Rs 143.5 billion for operating expenses and Rs 120.5 billion has been set aside for physical assets. Pensions for military personnel account for Rs 98.2 billion for next year that would be paid out of the civilian budget. There is also a separate allocation for security-related expenses that is not included in the budget documents.
A military official tried to play down the increase in defence expenditure, saying that Rs 35 billion will simply offset the impact of the depreciation of rupee against dollar and double-digit inflation. Pakistan has yet to receive $2.9 billion under the Coalition Support Fund (CSF) while $8.7 billion out of the total demand for $11.6 billion has been received under the Fund since 2002.