ISLAMABAD: As the country’s inflation is at an all-time high, the Economic Coordination Committee (ECC) has approved Rs4billion Technical Supplementary Grant (TSG) for defence forces to meet financial requirements of rations, utilities, medical services and POL, well informed sources told Business Recorder.

On May 24, 2023, Defence Division sought permission of the Chairman ECC/ Finance Minister to table the summary as an additional item in view of the exigency in the matter while Chairman ECC allowed submission of the summary before the ECC.

The ECC was informed that annual allocation of defence budget amounting to Rs. 1.563 trillion was made to Defence Division at the start of CFY 2022-23, of which an amount of Rs. 607.494 billion was allocated for Employee Related Expenses (ERE) and Rs. 1.1555 trillion billion for non-ERE.

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According to Ministry of Defence, due to unprecedented inflation and hike in prices, few essential/ unavoidable expenses, i.e., rations, utilities, medical services, POL, etc., have become unmanageable within the allocated budget. Therefore, there is a need for Technical Supplementary Grant amounting to Rs.4 billion under non-ERE for defence budget.

The sources said Finance Division consented to the provision of TSG in accordance with Federal Cabinet’s decision, and the matter related to sanction of Technical Supplementary Grant shall be cleared under recommendation of ECC.

Approval of the ECC of the Cabinet is solicited for the TSG worth Rs 4 billion to meet critical requirements of Defence Budget (Non-ERE) against Demand No. 29 (Defence Services), during CFY 2022-23.

Copyright Business Recorder, 2023