ISLAMABAD: The armed forces are likely to be allocated Rs1.453 trillion in the budget for the next fiscal year, which would be about Rs83 billion higher than the outgoing year’s allocation of Rs 1.37tr, an increase of almost six per cent.

Defence spending often comes und­­er scrutiny at the time of the annou­nce­ment of the annual budget when allocati­ons for various sectors are earmarked.

Read more: Budget to be presented on June 10, says official

This year a Rs136bn raise was expected after taking into account an average of 11.3pc inflation for the outgoing year. Therefore, in number terms, the armed forces would be getting about Rs53bn less than what they say was needed for coping with inflation.

The impact of the defence spending is measured in two ways — the share of the defence services in the overall budget pie and as a percentage of the GDP.

The share in the total outlay explains how much money is going to the armed forces. Meanwhile, calculating the defence budget as a percentage of the GDP indicates its burden on the national economy.

The defence budget, going by these figures, would be about 16pc of total outlay — much similar to the outgoing year. But, in terms of GDP, its share would go down from 2.54pc in the outgoing year to 2.2pc in the next fiscal year.

The increased amount, the defence source says, will be consumed mostly by the allocation for employees-related expenses, salaries and allowances of servicemen.

Other heads of the budget include civil works, which caters for the military infrastructure development and repairs; physical assets that relate to local purchases of arms and ammunition and some imports and the related costs; and operating expenses, which cover costs incurred on transport, ration, training and treatment.

The source said that the spending per soldier is about Rs2.65 million per annum, which is not even one-third of what India spends.

The source, meanwhile, said that armed forces and their welfare entities paid Rs935bn in taxes in the outgoing year.

They further said that Army saved and returned Rs500m to the government from Covid allocation and $16.9m against procurements.

Published in Dawn, June 5th, 2022

Opinion

Editorial

A new operation
Updated 25 Jun, 2024

A new operation

Clear deterrent action is needed against terrorist groups, but without upending the lives of people in the affected areas.
Power theft
25 Jun, 2024

Power theft

FEDERAL Energy Minister Awais Leghari’s statement during a TV interview that electricity theft amounts to Rs600bn ...
Fatal air
25 Jun, 2024

Fatal air

TOXIC air can cost us our children. It causes life-threatening illnesses, inflicts lifelong damage and leads to ...
Time for dialogue
Updated 24 Jun, 2024

Time for dialogue

If the PML-N and PTI remain mired in mutual acrimony, an ever-widening gap will continue to allow non-political forces to assert themselves.
Property taxes
24 Jun, 2024

Property taxes

ACCORDING to reports in the local media, along with the higher taxes imposed on real estate in the recent budget, ...
Fierce heat
24 Jun, 2024

Fierce heat

CLIMATE change is unfolding as predicted by experts: savage heat, melting glaciers, extreme rainfall, drought, ...