ISLAMABAD: The government has proposed an allocation of Rs2.12 trillion for the armed forces in the upcoming fiscal year (FY 2024-25), reflecting a 17.6% increase compared to last year’s budget. This substantial hike underscores the country’s priorities amid regional geopolitical tensions.
The allocation for the armed forces will constitute 1.7% of GDP, maintaining the same proportion as last year. It also represents 12.33% of the projected current expenses for the next fiscal year.
This significant boost in defense spending is the second-largest in six years, slightly less than the 18% increase granted by the PML-N government in the final year of its 2013-18 tenure. It also marks the second consecutive year of elevated funding for the armed forces, following last year’s 15% increase, diverging from the traditional 11% annual raise observed over the past decade.
Government data presented to the National Assembly reveals that the armed forces slightly exceeded last year’s allocation of Rs1.8 trillion, ultimately spending Rs1.83 trillion.
However, this allocation does not fully capture the country’s actual military expenditure. A notable sum of Rs662 billion, designated for retired military personnel, will be drawn from the government’s current expenditure rather than the defense budget, representing about 31% of the allocation for the armed forces.
Allocation reflects a 17.6% increase compared to last year’s defense budget
Major military acquisitions and funding for nuclear weapons and missile programs are believed to be financed through separate channels, concealed under classified budget lines, keeping the true extent of military spending obscured.
Service-wise Share
The distribution of the budget among the three services and inter-services organizations has remained consistent since 2019, with the Army receiving 47.5%, the Pakistan Air Force (PAF) 21.3%, the Navy 10.8%, and inter-services organizations 20.3%.
This year’s budget introduces a unique pattern, with all branches of the military receiving an equal percentage increase of 22.3% in their respective allocations, a rare display of funding parity.
The budget is divided into four categories: ‘Employees Related Expenses’, ‘Operating Expenses’, ‘Physical Assets’, and ‘Civil Works’.
The largest increase in the defense budget for FY 2024-25 is observed in the civil works category, which has been allocated Rs244.8 billion, marking a 25% increase. This is followed by physical assets, allocated Rs548.6 billion (an 18.8% increase), and operating expenses, allocated Rs513.3 billion (a 15.6% increase).
Despite these increases, employee-related expenses remain the largest portion of the budget, accounting for 39%. Physical assets and operating expenses claim 25.8% and 25% of the defense budget, respectively, while civil works accounts for 11.5%. The proportions allocated to physical assets and civil works have varied slightly over the years, but employee-related expenses and operating expenses have shown a consistent upward trend.
Despite the absence of active conflict with India in recent years, Pakistan perceives a persistent threat from its eastern neighbour. More pressing challenges have emerged from cross-border militancy from Afghanistan and rising internal militancy driven by the Tehreek-i-Taliban Pakistan and the insurgency in Balochistan.
Securing the porous borders with Iran is also crucial for combating drug and weapons trafficking, as well as militant movements. Internally, Pakistan faces threats from insurgent groups like the TTP, responsible for numerous attacks across the country. Additionally, ensuring the security of Chinese investments, particularly those under the China-Pakistan Economic Corridor (CPEC), is a high priority due to the strategic economic and political implications of recurring attacks on Chinese nationals and projects, which could jeopardize Pakistan’s vital relationship with China.
June 13, 2024
Source: Dawn