Pak Increases Defence Budget by 10-15%

[Argus Panoptes]

If thats the cases, i hope Nawaz could come up with some better tax reforms else 5 years down the line it won't matter as whoever come to power(PTI/PPP/PLMN) but Pak's economy would be nearly bankrupt.

I mean what wonders one could expect with 10% of budget allocation for all the development n domestic expenditure....:undicided:

Newsflash: Our economy is already nearly bankrupt. And despite IMF pressure, this government will be no different than the last in making only minor changes and never the sweeping changes needed to stem the rot. Who cares what happens five years down the road when there are millions upon millions to be made by self, friends and family today?

 

[PakPrinciples]

Is this a reward for the Pakistani Armed Forces for allowing the country to be bombed by drones attacks every day since June 18, 2004?

This isn't really a budget increase in the sense it adds to the armed forces capabilities and most likely accounts for Pakistan's true inflation levels since the current rates we are being given is most likely based on a revaluation from a more recent date (ex. 2008) and not a more distant date (ex. 2000). All governments around the world do the same thing.

What I usually look at is the armies budget as a percentage of the countries overall GDP.

The army does a great job but with expanding responsibilities (which include having to act as a police force on top of defending the borders) they are being stretched without an appropriate budget increase. In my opinion Pakistan needs to increase its tax to GDP ratio while 17% will maintain the yearly budget I think an additional 1% needs to be added which would specifically be invested in electricity generation and another 1% should be added for the military (i.e. the Army budget as a percentage of the GDP would be 3.5% instead of 2.6% where it currently stands). As the economy picks up with the resolution of the energy crisis the budget automatically increases but with the additional 1% I suggested on top of that it greatly enhances their capabilities.

This additional increase can be momentary but it is obvious the military needs more money for better equipment. For example, it seems like PAK soldiers are wearing level III body armor at best which weren't meant to stop AK-47 rounds for which you need Level IV rifle plates which can drastically reduce casualty rates. Furthermore, the military can then spend the cash on either investing in border defenses against drone strikes or whatever threats emanate from Afghanistan.

Imo the real solution to the drone threat is to simply cite the fact that the bases or territories where these drones are being launched off of will be attacked. From an article I read under international law Pakistan should try its best to stop infiltration into Afghanistan if it does occur but are not obligated to do so and the US has no right to bomb suspected militants on Pakistan's side so we would be justified in our retaliation.

 

[Yogi]

This isn't really a budget increase in the sense it adds to the armed forces capabilities and most likely accounts for Pakistan's true inflation levels since the current rates we are being given is most likely based on a revaluation from a more recent date (ex. 2008) and not a more distant date (ex. 2000). All governments around the world do the same thing.

What I usually look at is the armies budget as a percentage of the countries overall GDP.

The army does a great job but with expanding responsibilities (which include having to act as a police force on top of defending the borders) they are being stretched without an appropriate budget increase. In my opinion Pakistan needs to increase its tax to GDP ratio while 17% will maintain the yearly budget I think an additional 1% needs to be added which would specifically be invested in electricity generation and another 1% should be added for the military (i.e. the Army budget as a percentage of the GDP would be 3.5% instead of 2.6% where it currently stands). As the economy picks up with the resolution of the energy crisis the budget automatically increases but with the additional 1% I suggested on top of that it greatly enhances their capabilities.

This additional increase can be momentary but it is obvious the military needs more money for better equipment. For example, it seems like PAK soldiers are wearing level III body armor at best which weren't meant to stop AK-47 rounds for which you need Level IV rifle plates which can drastically reduce casualty rates. Furthermore, the military can then spend the cash on either investing in border defenses against drone strikes or whatever threats emanate from Afghanistan.

Imo the real solution to the drone threat is to simply cite the fact that the bases or territories where these drones are being launched off of will be attacked. From an article I read under international law Pakistan should try its best to stop infiltration into Afghanistan if it does occur but are not obligated to do so and the US has no right to bomb suspected militants on Pakistan's side so we would be justified in our retaliation.

If u'll add military pensions to ur defence budget u'll see that ur already spending around 3.5% of ur gdp on defence.

Although its a good approach to check defence expenditure as % of gdp but not in case of Pakistan.

U guys r spending roughly a quarter of ur entire budget on defence plus around 50% on foreign debt repayment.

n how do u expect tax to gdp ratio to shoot up to 17%???
i didn't saw any such tax reforms taking place in ur current budget.

 

[A1Kaid]

Nawaz Shareef is trying to keep the top brass happy and hoping to carry five years of looting, like his president, without any coup.

If Zardari can keep them happy than Nawaz Sharif should have no problem...

 

[PakPrinciples]

U guys r spending roughly a quarter of ur entire budget on defence plus around 50% on foreign debt repayment.

That is why I check the defence budget against the GDP.

For example, India's tax to GDP ratio is 17% while Pakistans as of last year hovered around 10% (usually between 9 to 10%). Thus, even though both countries spend approximately the same mount as a percentage of their GDP on defence the defence budget as a share of the overall budget in Pakistan will appear higher.

If u'll add military pensions to ur defence budget u'll see that ur already spending around 3.5% of ur gdp on defence.

For starters SIPRI calculated that Pakistans military expenditures as of 2011 was 2.8% of the countries GDP. However, that figure includes military pensions as per SIPRIs definition.

SIPRI Publications

Furthermore, the military has a lot of money invested in Pakistani industries and the dividends of those investments are also used to pay for military pensions, support programs, charity work, etc...

n how do u expect tax to gdp ratio to shoot up to 17%???
i didn't saw any such tax reforms taking place in ur current budget.

Well this is easy to implement considering both India and China have done it and they did so with a higher GINI coefficient (i.e. a tax increase on the Pakistani public would be easier on the people than it is in India or China).

Furthermore, both the federal and provincial governments alike have already started to increase tax collection. Two specific examples I recently commented on here on PDF were the KP government instituting taxes on all foreign and domestic goods being shipped to Afghanistan, increasing taxes on foreign media (ex. Bollywood movies, etc...) but other examples include a 1% hike in the general sales tax, increasing taxes on sugar, imposing a federal excise duty on various commodities. Though I personally want the government to increase income taxes on the rich and investigate tax fraud since, from what I can tell, the current measures are going to affect the low to middle income families a lot more than they will the upper income families.

 

[StormShadow]

Inflation has been 100% but the adjustment is only 10%?
Indians shall stop wetting the pants, defence budget is actually lowered.

LOL... Indians wetting pants? What do think this meager amount can do? Do you even have an iota of knowledge about Indian defense budget? Heck forget complete Indian armed forces..compare just Indian Navy's budget to complete pak military's budget. Then say whose is wetting pants.

 

[monitor12345]

Many Countries don't show their real & actual spending on defence.
US hides hundreds of Billions of Dollars of Defense Expenditure. No Surprise.

 

[HRK]

i drew my conclusion on the basis of Table 15 of Chapter 5 about Current Expenditures, the one posted by u marking Pension payments.

N there its written that PKR 1153 billion will be allocated for Interest repayment(both foreign n domestic) n PKR 366 billion will be paid on Foreign debt principle repayment.

But ur statement about PKR408 billion is also true but that would include only Principle Debt repayment of both Foreign Long term(PKR366 billion) + other short term loans(balancing fig.).

Now u can add both interest n principle(1153 + 408 = 1561 billion) to see that nearly 50% of the total Budget(PKR3.5 billion) is allocated for Debt repayment only.

Dear domestic debts is not an issue as shown in figure under.......it will be financed by raising 1482 billion domestic debts.....and good think about this purpose plan government would not borrow from state bank......which actually cause inflation......by this purposed way Government will absorbed additional liquidity in sys.....hope i have clear your point

 

[monitor12345]

Many countries hide their real & actual defence expenditures. No Surprise.
US's defence budget is hundreds of billions HIGHER than the already huge Official figure of 600 Billion Dollars.

 

[RAMPAGE]

ghar me pehene ka patlon nahi aur baatain J-20 ke

beta sudhar jao

tumhare daddy ka maal nahi he ke jaise udaye jao

beta apko aap k mummy daddy nai tameez nahi sikhai ? or han meray or meray jaisai public k hi hard earned tax paying money sai ye defense equipment khareedi jaati hain !

 

[HRK]

These are only the proposed budget figures, which are wrong by a mile and an half by the end of the year.

Rough figures: Two thirds goes to debt, one quarter goes to defense, leaving just under 10% for everything else. Anybody who pretends otherwise does so intentionally.

If thats the cases, i hope Nawaz could come up with some better tax reforms else 5 years down the line it won't matter as whoever come to power(PTI/PPP/PLMN) but Pak's economy would be nearly bankrupt.

I mean what wonders one could expect with 10% of budget allocation for all the development n domestic expenditure....

@Argus Panoptes............i really want to know your field of speciality......dear kindly try to understand there is a difference b/w perception & reality.....would request both of you to go through attached tables

 

[Peaceful Civilian]

Reasonable increase by PMLN under the circumstances.

 

[INDIC]

@Argus Panoptes............i really want to know your field of speciality......dear kindly try to understand there is a difference b/w perception & reality.....would request both of you to go through attached tables

The data you provided for defence lacks allocation for salary, pension and making nukes. If all those are added Pakistan's defence budget crosses $10 billion dollar or more than 990 billion rupees.

Last year allocation for education is less than 1% of the budget

 

[Argus Panoptes]

@Argus Panoptes............i really want to know your field of speciality......dear kindly try to understand there is a difference b/w perception & reality.....would request both of you to go through attached tables ...........

Sir, the perception is that Government of Pakistan budget figures are unreliable, and that is also the reality. The real and dire state of our finances is going to come out in talks with the IMF pretty soon.

 

[Yogi]

@Argus Panoptes............i really want to know your field of speciality......dear kindly try to understand there is a difference b/w perception & reality.....would request both of you to go through attached tables

Dear first u need to understand how to read tables.

571 is the total amount, u can't do 571+388+108+76=1142

As Its 571=388+108+76
n not the other way round.