NUZHAT NAZAR

ISLAMABAD: Pakistan has raised its defence spending by around 9.52 per cent for the fiscal year 2017-18, as the nation as a whole is successfully engaged in the war against terror.

Keeping the security challenges in view, the government allocated Rs 920 billion for the fiscal year 2017-18, compared to Rs 840 billion allocated for the outgoing fiscal year, showing an increase of Rs 80 billion.

Out of the whole defence budget, Pakistan Army gets 437 billion (47.5 per cent), Rs 195.55 billion (21.25 per cent) go to Pakistan Air Force and Pakistan Navy’s share is around Rs 98.876 billion (10.75 per cent).

However, the figures do not include Rs 180.2 billion allocated for pensions of retired military personnel that would be given from the civilian budget and a separate allocation for the security-related expenses.

The current expenditure estimate under the head of Defence Affairs and Services has been budgeted at Rs 920 billion for fiscal year 2017-18 as compared to Rs 860 billion budgeted for 2016-17, which was later revised downward to Rs 840 billion for the outgoing fiscal year.

Estimates for total current expenditure for defence in the budget for fiscal year 2016-17 stood at Rs 3,843,986, which were revised upward to Rs 3,904,753. For fiscal year 2017-18, an allocation of Rs 3,763,709 has been made for current expenditure, showing a decline of 3.6 per cent over the revised estimates of the outgoing fiscal year 2016-17.

The main components of current expenditure are mark-up on government borrowing, defence, running of civil government, pension, grants and subsidies.

The allocation for defence services forms the major component, with a share of 99 per cent in the total allocation under this head including: (i) employees related expenses estimated at Rs 322,142 million (ii) operating expenses estimated at Rs 225,521 million, (iii) physical assets estimated at Rs 243,991 million, and (iv) civil works Rs 128,346 million, while lee recoveries to be made under the head are estimated as Rs 2051 million.

For defence administration, Rs 2217 million have been budgeted for the next fiscal year.

Moreover, while recognising the sacrifices made by brave soldiers, many of whom have embraced martyrdom, the government has announced welfare of their families. The government is launching a new scheme through Central Directorate of National Savings (CDNS). Under this scheme, a guaranteed and enhanced profit will be given to the families of Shuhada (martyrs).