ISLAMABAD: The federal government on Wednesday budgeted Rs2,128.8 billion for defence affairs and services for 2024-25 as compared to the revised disbursement of Rs 1,859.3 billion reflecting an increase of 17.6 percent from the original budget of Rs 1,809.5 billion (14.5 percent from the revised budget).

This new budget constitutes 11.28 percent of the total budget, addressing high inflation rates and security concerns, according to defence sources.

A detailed examination of the budget indicates that the original allocation for the outgoing fiscal year was Rs 1,809.5 billion, which was later revised upwards to Rs 1,859.3 billion.

IMF projects FY25 defence budget at Rs2.152trn

Defence budget excludes pensions, which have been budgeted at Rs 662 billion. This figure represents a 13.6 percent increase from last year’s revised pension expenditure of Rs 583 billion. The pensions were originally budgeted at Rs 563 billion, reflecting a 17.6 percent increase.

Additionally, major defence-related procurements and strategic programmes, including the nuclear weapons programme, are not itemised in the budget.

For defence administration, Rs 6,781 million has been allocated, up from Rs5,312 million in the revised estimates of the outgoing year. The previous budget for 2023-24 had allocated Rs 5,467 million for this purpose.

Defence services are budgeted at Rs2,122 billion against Rs1,854 billion in the revised estimates of last year against the budgeted Rs1,804 billion rupees. This includes (i) employee-related expenses at Rs815.2 billion including salaries and allowances paid to troops in uniform and civilian employees; (ii) operating expenses budgeted at Rs513.3 billion that include transport, POL (petroleum, oil and lubricants), rations, medical treatment, training, etc; (iii) Rs548.6 billion for physical assets utilised for local purchases and import of arms and ammunition and related procurements; and (iv) Rs244.9 billion budgeted for civil works that include funds marked for maintenance of existing infrastructure and construction of new buildings.

In addition, Rs5,636 million has been allocated under the head of PSDP to the defence division and Rs3,776million to the defence production division.

The International Monetary Fund (IMF), in its second and final review documents of the Stand-By Arrangement, projected Pakistan’s defence budget for the next fiscal year at Rs 2,152 billion, indicating a 19.29 percent increase over the Rs 1,804 billion budgeted for the outgoing fiscal year.

Copyright Business Recorder, 2024