Rs1.8095trn set aside for Defence in 2023 Budget

ISLAMABAD: The federal government on Friday earmarked Rs 1,809.5 billion for defence affairs and services for 2023-24 as compared to the revise spending of Rs 1,591.2 billion marking an increase of 15.5 percent from the original budget (14 percent from the revised budget).

The budget document revealed that the defence outlay for fiscal year 2023-24 would be 12.51 percent of the total budget.

However, the defence sources claimed that this increase has been given while keeping the base with high inflation.

A closer look at the budget document revealed that the original allocation for the outgoing fiscal year was Rs 1,566.9 billion which was revised upwards to Rs1,591.2 billion.

The defence budget does not include pensions estimated at Rs 563 billion (and itemized under current expenditure) which reflect a 26 percent increase from last year’s revised figure of Rs 446.3 billion (42.5 percent from the original pension budgeted as Rs 395 billion) – while other major defence related procurements and strategic programmes are not itemized in the budget including nuclear weapons programme.

The amount budgeted for defence administration is Rs 5,467 million against Rs 4,300 million in the revised estimates of the outgoing year with Rs 3,698 million budgeted for 2022-23.

Defence services are budgeted at Rs 1809.5 billion against Rs 1591.2 billion in the revised estimates of last year against Rs 1566.7 billion rupees actually budgeted for the current year. This includes (i) employee-related expenses at Rs 705.1 billion including salaries and allowances paid to troops in uniform and civilian employees; (ii) operating expenses budgeted at Rs 442.2 billion that include transport, POL (petroleum, oil and lubricants), rations, medical treatment, training, etc; (iii) Rs 461.2 billion for physical assets utilised for local purchases and import of arms and ammunition and related procurements; and (iv) Rs 195.5 billion budgeted for civil works that include funds marked for maintenance of existing infrastructure and construction of new buildings.

In addition, Rs3,400 million has been allocated under the head of PSDP to the defence division and Rs2,000 million to the defence production division.

June 11, 2023

Source: Business Recorder

By Editor

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *